French software giant Cap Gemini Sogeti SA’s shares outperformed everyone else on the Paris bourse Friday, increasing 8.1% to FF221.4 per share on 148,000 shares traded. Market makers had no explanation for the stock’s upward bound, noting furthermore that it underperformed during August by losing 2% while the market itself gained 6.4%. A Cap Gemini spokeswoman said any explanation for the jump escapes us completely. She noted that the only announcement the company made of late was its first big contract in the US with Total at the end of July. Dennis Exton, information technology analyst at Merrill Lynch in London, says the jump could be explained be a combination of things. Cap Gemini’s stock is one of the Paris exchange’s CAC 40, or blue chip listings. After a strong performance in the early part of the year, Cap Gemini just trod water in July and August. Given that the whole of the CAC 40 has had a boost and people are buying French shares in expectation of interest rate cuts, there may be a bit of catch-up [for Cap Gemini], he said. He said it may also be that most investors are starting to consider that the next phase of economic growth will benefit systems integrators or computer services companies because they are best able to improve a company’s rate of return. Another reason may have been that [Cap Gemini’s] first half sales figures were not as bad as expected, he said, adding that the market was anticipating a decline of between 4% and 6%.
