(Updates with full report)
PARIS (AFX) - Share prices closed higher as an early rise on Wall Street reinforced steady gains during the earlier part of the day, in which Veolia led the way ahead of its full year sales update tomorrow morning.
The CAC-40 finished up 37.40 points or 0.67 pct at 5,619.70, on volume of 4.8 bln euro.
Among CAC-40 stocks, 33 closed higher and 7 closed lower.
On the Matif, February CAC-40 futures were up 38.0 points at 5,631.0.
On the broader indices, the SBF-80 index closed up 39.70 or 0.58 pct at 6,837.50 and the SBF-120 rose 26.82 or 0.66 pct to 4,106.38.
The euro stood at 1.2937 usd compared with 1.2960 late yesterday.
Veolia was the biggest climber among blue chips, rising 1.75 eur or 3.33 pct to 54.35.
The stock rose steadily throughout the day, lifted by a raft of positive comment from brokers on the eve of its full-year sales statement.
JP Morgan anticipated the figures as 'the first in a series of indications about a strong performance achieved in 2006 and a positive outlook for 2007/08.'
CM-CIC Securities also predicted double-digit growth, driven by Central Europe and China, while also underlining good indicators for the sector as a whole.
EADS closed up 0.42 or 1.71 pct at 25.00, off an intraday high of plus 3.07 pct reached midafternoon following a report by French magazine Capital that the Russian government is in talks to buy 20 pct of the group's Airbus unit.
EADS denied the report, while a Paris-based trader was sceptical given the political barriers that would hamper any attempt by Russia to become a major partner in Airbus.
Danone rose 3.30 or 2.85 pct to 119.20.
In the absence of company-specific news developments, the shares continue to benefit from Danone's superior organic sales growth compared to the rest of the sector, one Paris dealer said.
Air Liquide gained 3.40 or 1.92 pct to 180.40, recovering from losses on Thursday and Friday following fourth quarter sales that were below expectations.
Financials were also higher, with Societe Generale gaining 1.70 or 1.28 pct to 134.60 and BNP Paribas adding 0.80 or 0.96 pct to 83.90.
In an interview with French daily Le Parisien, Societe Generale chief executive Daniel Bouton said the group's full year results will reflect the strong pace of growth already seen in the first nine months.
Pernod Ricard was up 1.10 or 0.70 pct at 159.10 as investors continued to buy on the back of last week's strong first-half sales figures.
In a note to clients this morning, WestLB raised its stance on the stock to 'add' from 'hold', saying the drinks maker had put in an 'astonishing (second) quarter' with broad-based growth across all geographical regions and brands.
Saint-Gobain added 0.50 or 0.69 pct to 73.15, continuing last week's gains after the publication of strong net profit figures.
Exane BNP Paribas raised its target price for the stock to 88 eur from 78 eur to reflect the company's restructuring potential and a favourable outlook in Europe and emerging markets.
Elsewhere among blue chips, Vinci gained 1.70 or 1.63 pct.
The day's biggest faller among blue chips was Sanofi-Aventis, down 0.95 or 1.36 pct at 69.00 after a report in La Lettre de l'Expansion that it signed a preliminary agreement to take over Bristol-Myers Squibb last week.
Traders noted that the rumour is not new, adding that a large gap between Sanofi and BMS's valuations means a purchase of BMS would be significantly dilutive.
Also in negative territory was France Telecom. The company, which reports earnings on Thursday, shed 0.19 or 0.89 pct following Sunday's profit-warning by Deutsche Telekom.
Reiterating their 'underperform' stance on the stock, analysts at Exane BNP Paribas said they expect domestic competition in the triple-play market to have weighed on France Telecom's market share in late 2006.
Heavyweight stock Total was 0.05 or 0.10 pct lower at 51.65 after crude prices fell in London and in early US trading.
Among second-liners, Air France-KLM rose 0.48 or 1.49 pct to 32.67 after UBS published a positive note on the European airline industry and raised its price target for the French carrier to 40 eur from 35 eur.
Analysts at UBS said the recent decline in oil prices and fuel costs will prove positive for profits across the sector.
Other mid-cap gainers included JC Decaux, which was up 0.66 or 3.05 pct at 22.33 after its Somupi joint venture with Publicis - up 0.09 or 0.28 pct at 32.70 - won a contract from the city of Paris to manage outdoor advertising.
paris@afxnews.com gt /gt/jms COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2007 AFX News
