French Stocks: Credit Agricole, Danone, France Telecom, Zodiac

By Adria Cimino

July 2 (Bloomberg) -- France's CAC 40 Index gained 17.60, or 0.4 percent, to 4,358.81 at 9:37 a.m. in Paris, rising for the second time this week. The SBF 120 Index added 0.6 percent.

The following stocks rose or fell in Paris. Stock symbols are in parentheses.

Credit Agricole SA (ACA FP) added 21 cents, or 1.7 percent, to 12.58 euros, climbing for the first time this week. France's third-largest bank by market value raised 5.9 billion euros ($9.3 billion) in a rights offering to replenish capital after writedowns on subprime-infected assets.

Groupe Danone SA (BN FP) sank 2.66 euros, or 6 percent, to 41.59, retreating for a fifth day. Morgan Stanley cut its recommendation on shares of the world's biggest yogurt maker to ``equal weight'' from ``overweight.'' Cheuvreux lowered its recommendation to ``underperform'' from ``country selected.''

France Telecom SA (FTE FP), Europe's third-largest phone company, climbed 26 cents, or 1.4 percent, to 19.42 euros, gaining for a third day. HSBC Holdings Plc raised its recommendation on the shares to ``overweight'' from ``neutral.''

Renault SA (RNO FP) increased 87 cents, or 1.7 percent, to 51.92 euros, rising for a second time this week. Citigroup Inc. lifted its recommendation on shares of France's second-largest automaker to ``buy'' from ``hold.''

Sodexo (SW FP) advanced 64 cents, or 1.6 percent, to 41.59 euros, rising for the first day this week. The world's second- largest catering company said nine-month sales rose 2.5 percent to 10.5 billion euros, matching analysts estimates.

Zodiac SA (ZC FP) slid 68 cents, or 2.4 percent, to 27.31 euros, dropping for a fifth day. UBS AG cut its recommendation on the supplier of aircraft seats and escape chutes to Airbus SAS to ``neutral'' from ``buy.'' Oddo Securities downgraded the shares to ``add'' from ``buy.''

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.