(Updates with full report)
PARIS (Thomson Financial) - Share prices closed marginally higher as the market gradually recovered from a lower opening, with bank shares rebounding strongly amid bargain-hunting in a sector where prices have been sagging from the sub-prime crisis.
The market struggled to get into positive territory, however, as much of the day was dominated by a slump in energy stocks amid speculation that OPEC will soon raise oil production quotas.
The CAC-40 index closed up 11.38 points or 0.21 pct at 5,535.56.
The euro was quoted at 1.4533 usd, against 1.4664 late Friday.
Two blue chip banks posted gains of more than 4 pct - Dexia, which closed up 0.75 eur or 4.08 pct at 19.14, and BNP Paribas, which ended up 2.77 eur or 4.04 pct at 71.36.
Credit Agricole, which reports its results Wednesday, finished with a gain of 0.65 eur or 2.78 pct at 24.07, and Societe Generale closed up 2.29 eur or 2.29 pct at 102.29.
Third quarter results so far from French banks have shown their subprime crisis exposure to be very limited relative to some major US and other western banks.
Airbus maker EADS was also among the big gainers, rising 0.62 eur or 2.78 pct to 22.90, after it reaped tens of billions of euros in new airplane orders from the Dubai Air Show.
UAE airline Air Arabia placed a 3.5 bln usd order for 34 planes with an option for 15 more, following Saudi Arabian Airlines' letter of intent to buy 22 planes, leaser Dubai Aerospace's announcement that it will buy 100 planes for 13.5 bln usd, and yesterday's giant 20 bln usd order for 81 planes.
Just as important for EADS, many of the planes sold are the newly revamped A350 XWB, confirming that it is meeting client needs.
Separately, EADS' defence systems unit won a major contract from the port of Tangiers, Morocco, for a security system.
Vallourec closed 4.05 eur or 2.14 pct higher at 193.65, shrugging off company denials of a report that Russian billionaire Alisher Usmanov was planning a takeover bid after agreeing to buy a stake from French businessman Vincent Bollore.
ArcelorMittal was the most prominent decliner among the blue chips, hit by profit-taking as market sources reported a vague rumour that the company's third quarter results, due Wednesday, may be disappointing. The share closed down 1.98 eur or 3.93 pct at 48.44.
Energy and utility shares were down amid speculation that OPEC will seek to counter record-high crude oil prices by agreeing to allow member countries to produce more oil.
EDF was down 1.92 eur or 2.31 pct at 81.33, and oil giant Total was down 0.77 eur or 1.37 pct at 55.56.
Gaz de France closed 0.18 eur or 0.47 pct lower at 37.90, and Suez was down 0.08 eur or 0.18 pct at 44.20. tfn.paris@thomson.com mjs/lam COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
