French shares in best-ever surge on bank rescue plan
Innvestors gave a rousing thumbs up to the wide- ranging bank rescue plan announced by French President Nicolas Sarkozy, as the Paris Bourse's benchmark CAC 40 registered its best- ever percentage rise on Monday, reported dpa.
At close of trade, the index was up 11.18 per cent, to 3,531.50, with 39 of 40 listed stocks gaining ground.
With the French state guaranteeing interbank loans, the surge was led by industrials on the belief that credit would flow again to businesses and consumers.
Energy supplier GDF Suez was the day's biggest winner, gaining 25.01 per cent, to 30.37 euros, while steel giant ArcelorMittal was up 19.67 per cent, to 26.22 euros.
The day's only loser was the bank Societe Generale, because of reports that it was in need of recapitalization. After plunging by nearly 23 per cent, its share price ended down 2 per cent, to 49.00 euros.
The bank vehemently denied what it called "evil rumours" and asked the market watchdog AMF to take appropriate action because of the effect of the reports on its share price.
Last week, the Paris Bourse lost more than 22 per cent due to uncertainty about the response of European governments to the finance crisis.