(adding full report)
PARIS (Thomson Financial) - Share prices closed slightly higher, holding on to yesterday's 100-point gains, helped by a fresh high on the Dow Jones industrials in New York, although L'Oreal fell sharply as the market was disappointed that its second-quarter sales were only in-line, dealers said.
The CAC-40 index finished up 14.91 points or 0.24 pct at 6,117.96.
Among CAC-40 stocks, 26 closed higher and 14 closed lower. On the Matif, July CAC-40 futures were trading at 6,124.50.
On the broader indices, the SBF-80 index closed up 23.90 or 0.33 pct at 7,330.49 and the SBF-120 ended 11.37 or 0.26 pct higher at 4,460.11.
The euro was trading at 1.3779 usd against 1.3749 late yesterday.
Yesterday's surge offset losses earlier in the week and allowed the CAC to edge up 15.27 points or 0.25 pct compared to last Friday's close.
Investors remained upbeat today, helped by fresh gains on the Dow that brought the Wall Street index over the 13,900 mark for the first time.
Property and financial stocks figured among the main risers as fears over subprime home loans in the US continued to ease.
Insurance group Axa -- up 0.60 eur or 1.87 pct at 32.64 -- and property group Unibail-Rodamco -- up 3.35 or 1.80 pct at 189.60 -- were the biggest CAC climbers at the close.
Credit Agricole led gains among banks, adding 0.29 or 0.99 pct to 29.72. Fitch Ratings' announced ratings for Credit Agricole of long-term issuer default 'AA', short-term IDR 'F1+', individual 'B' and support '1'.
In contrast, cosmetics giant L'Oreal plunged 3.68 or 4.15 pct to 85.06. Although it reported like-for-like sales growth of 7.4 pct for the second quarter, analysts had been expecting as much as 8.5 pct, according to Exane BNP Paribas, which said regional data contributed to its disappointment by falling short of hopes.
UBS reiterated its 'buy' recommendation but made note of 'short-term pressures' due to slower-than-expected growth in North America and a 'difficult' outlook for first half margins.
Capgemini was down 0.94 or 1.67 pct at 55.27 as speculation subsided about a possible takeover bid from Indian IT giant Infosys.
Capgemini was also cited by sources as one of the parties interested in a tie-up with Deutsche Telekom's T-Systems unit.
But speculation centred on a move by Atos Origin -- down 0.12 or 0.25 pct at 47.53 -- to join forces with T-Systems, although Atos declined to comment.
Danone was another significant faller, shedding 1.98 or 3.36 pct to 57.02 as it saw renewed profit-taking following its 12.3 bln eur bid for baby food maker Numico, announced on Monday.
Back on the upside, Schneider Electric extended its gains -- adding 1.56 or 1.51 pct to 104.77 -- following an upgrade to 'buy' from 'hold' at Citigroup. The broker said the group's fundamentals remain strong and it is a leader in the energy efficiency area.
Earlier this week, Schneider shares made gains after an EU court ruled it should be compensated for having a planned merger with Legrand illegally blocked by the European Commission.
Market heavyweight Total helped keep the CAC in positive territory by rising 0.67 or 1.07 pct to 63.05.
Following yesterday's announcement that it has been chosen by Gazprom to jointly develop the Shtokman gas field, Total said it will invest 4-5 bln eur in the project.
Analysts welcomed the move, with one Paris-based analyst stressing that 'strategically, the company is participating in the largest gas deal in the world.'
Elsewhere, SEB fell 4.94 or 3.47 pct to 137.35 as analysts predicted the kitchen equipment maker will have to modify its plans for the 240 mln eur acquisition of a majority stake in China's Zhejiang Supor Cookware Co Ltd.
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