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French shares

end at fresh high

PARIS: French shares closed at a fresh 19-months high and added another 0.72 percent to Monday's high to close at the highest level since August 29, 1994. Prices were boosted by a higher franc, signs of economic recovery and bid rumours.

Traders said that if the level of 2,070 held on Wednesday, the index could rise as far as 2,125. But the index is still far from its historic high of 2,360.98 reached in February 1994.

CAC-40 index closes up 14.78, or 0.72 percent, at 2,070.41.

CAC-40 April futures 2,068 vs 2,060 at Monday's close.

Volume was 5.64 billion francs.

Broader SBF-120 index closed up 7.07 points at 1,447.79.

Dealers said investors were getting cautious, avoiding large positions ahead of the Easter break and the March U.S. Jobless data due on Friday, when Paris markets are closed.

Paribas and Suez up on rumours. Paribas is boosted by the success of its bid for Navigation Mixte but also by market talk that Francois Pinault or Societe Generale might stage a bid for the company. SocGen has already denied the rumour.

Suez boosted by continuing talk it could sell its Banque Indosuez unit to Credit Agricole.

There was also resurging talk of a "TGF" (Tres Grande Financiere) mega-financial merger with a link-up between Suez, Insurer UAP and bank BNP.

Another scheme being discussed on the market was a possible link of Indosuez with the Generale de Banque activities of Suez unit Societe Generale de Belgique and Banque Bruxelles Lambert.

Rhone-Poulenc continued rising on persistent rumours of a planned merger between drugs units Rorer and Elf unit Sanofi despite denials.

Publicis rose strongly after the company briefed fund managers at a meeting arranged by brokers Exane.

Club Med down after Paribas Capital Markets puts out sell recommendation as it believes the stock is overvalued by 12 percent.-Reuter