The CAC 40 closed up by 0.66% to reach its highest level since June 2001.
Newtech Interactive leapt ahead following its half-yearly results.
The Paris stock exchange closed on Tuesday at its highest closing level since 8 June 2001, the CAC 40 gaining 0.66% to finish on 5,437.78 points, supported by the strength of the American markets and the prospect of major new mergers and acquisitions, according to brokers.
The leading Paris index rose by 35.42 points to 5,437.78 points, with a volume of transactions reaching 4.75 billion euros.
The previous high for the year was on the 26th October, with the CAC 40 reaching 5,433.78 points. London gained 0.30%, Frankfurt 0.49% and Eurostoxx 50 0.68 %.
Despite the lack of American macroeconomic indicators and uncertainty concerning the results of parliamentary elections in the USA, the Paris Stock Exchange again reached the annual records achieved two weeks ago.
“The great strength of the American market and several buyouts in the United States supported the market”, said a share trader from an independent broker.
“There is a feeling that new money is coming into the market which adds to the prospect of large transactions between companies”, explained the broker.
“I did not expect these levels to be reached again after what happened last week”, he said expressing surprise and referring to the consolidation that led to a slight fallback in the indices.

IT security to follow
Newtech Interactive (+16.36% to 2.56 euros)
The company specializing in publishing and marketing interactive content for individuals and professionals published its results for the first six months of 2006.
Its turnover dropped 18% to 8.98 million euros, the result of focusing the company’s offering on Mobility and Web services. Its net profit/loss also gave ground.
The company made a loss of 0.26 million euros as compared with a profit of 0.41 million euros for the first half-year of 2005.
Despite these downward results, Newtech remains confident, relying on promising developments in the half-year to come.
The Company points in particular to the widening of its web offering, as well as to an increase in audience.
JDN with AFP

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