One broker said the British rate hike might indirectly favour the French
car makers, which do a lot of business in Britain as a stronger pound
would translate into more revenue in francs.
``There's a lot bubbling in the auto sector now and it's positive,''
said another dealer, referring to the bidding war for Rolls Royce. Good
monthly sales figures also helped.
``The French car makers are being taken a bit more seriously now. Before
everyone just wondered when they would disappear,'' the dealer added.
Renault was the biggest beneficiary of the improving sentiment, gaining
3.49 percent to 326 francs. PSA Peugeot Citroen shares gained 3.08
percent to 1,240 francs although Folz discouraged speculation of any
merger in the wings.
Peugeot group shareholders renewed a poison pill resolution that would
allow the company to increase its capital by up to four billion francs,
and Peugeot family representative Roland Peugeot said at the annual
meeting that the family would be more inclined to increase than decrease
its holding -- currently 22.7 percent of the capital and 34.8 percent of
the voting rights.