Peugeot shares jump on strong sales

Paris - French auto group Peugeot reported on Wednesday a 10.2%surge in sales in the first quarter and stood by operating forecasts for 2011 despite the impact of disruption in Japan.

The statement sparked a 3.7% surge in Peugeot shares to €28.17 in a market showing an overall gain of 1.44% as measured by the CAC 40 index.

The group said that the effects of the earthquake disaster in Japan would probably hit operating results this year by €150m, but even so it expected to achieve its target.

At Deutsche Bank, analyst Gaetan Toulemonde said that the market had welcomed the "reassuring message" from the group.

At CM-CIC, analysts commented: "The sales figure is excellent. The group is benefiting from recent vehicle launches."