French shares rise on Wall Street showing, capital injectionsOctober 21st, 2008 - 5:00 pm ICT by IANS
Paris, Oct 21 (DPA) Buoyed by a strong Wall Street showing and the French government’s announcement on a capital injection for its banks, shares in Paris were up sharply in early trading Tuesday.One hour after opening, the benchmark CAC 40 gained 2.56 percent, to 3,536.76, with gainers outnumbering decliners by nearly 6 to 1.
Banking stocks led the surge after the French government announced late Monday that it would inject 10.5 billion euros ($14 billion) into the country’s six-largest financial institutions by the end of the year.
Credit Agricole, which is to receive 3 billion euros, was up 10.86 percent, to 11.58 euros, while Societe General had gained nearly 10 percent, to 48.31 euros, and BNP Paribas rose 8.32 percent, to 59.46 euros.
Societe General will receive 1.7 billion euros, while BNP Paribas will get 2.55 billion euros from the government in its capital injection programme.