UPDATE 1-Volkswagen denies market talk of capital increase


(Adds background) FRANKFURT, Jan 19 (Reuters) - Volkswagen AG denied on Wednesday market talk that Europe's biggest carmaker might seek to raise fresh capital via a rights issue. "This is coming completely out of thin air. If you just repeat a rumour it does not make it more sensible or more real," a company spokesman said. VW shares came off a session low of 35.65 euros to trade down 0.3 percent at 35.78 euros by 1245 GMT while the DJ Stoxx European car sector index rose 0.2 percent. ...

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