France Telecom Leads Slip
September 28, 1998
PARIS -- Stocks fell in midday trading Monday as
losses for utility France Telecom pressured the market.
In midday trading, the CAC 40 Index was down 46.45,
or 1%, to 3264.14 after falling 70.54 Monday.
France Telecom, which has a 11% weighing on the
CAC 40 Index, led the decline. France Telecom fell
19.8 francs, or 5.4%, to 350.2 francs.
Home-improvement chain Castorama also fueled the
market decline. The company said Friday that it will
merge its business with British retailer Kingfisher by
forming a joint venture partnership. Shares of Castorama
slipped 8.7%, or 92 French francs, to 968 francs.
Communications and construction conglomerate
Bouygues also eased Monday ahead of an analysts'
meeting to discuss the company's first-half results later
Monday. The company said last week that its six-month
net profit fell to 102 million francs from 528 million
francs due to lower one-time gains and higher taxes.
Banking shares slumped after moving higher in early
trading. The sector was pressured by news that Japan
Leasing, an affiliate of troubled Long-Term Credit Bank
of Japan, filed for bankruptcy Sunday. The bankruptcy
comes on the heels of a major U.S. hedge fund bailout
Friday, which sent banking shares spiraling lower across
Europe.
In that group, Paribas eased 11 francs to 324 francs,
while Societe Generale de France shed 17 francs to
667 francs.
Chemicals group Rhodia rose 3.5 francs, or 5.2%, to
70.5 francs after the company said is has sold its only
remaining European polyester plant in accord with its
plan to divest all of the group's polyester activities to
focus on specialty chemicals. Parent company Rhone
Poulenc advanced 10 francs to 235 francs. |
