Oct. 20 (Bloomberg) -- French stocks gained, led by Total SA after crude oil advanced for a second day in New York.

Michelin & Cie. rose after Morgan Stanley analysts increased their share-price forecast.

The CAC 40 Index added 20.42, or 0.4 percent, to 5380.16 at 9:52 a.m. in Paris, heading for a 0.5 percent gain this week. The SBF 120 Index rose 0.4 percent today.

Total, Europe's biggest oil refiner, gained 50 cents, or 0.9 percent, to 53.7 euros. Technip SA, the region's second-largest oil-services company, advanced 47 cents, or 1 percent, to 46.25 euros.

Crude oil futures rose for a second day in New York after OPEC increased the size of a planned output cut by one-fifth to 1.2 million barrels a day and said it may reduce production again in December. The contract for November delivery rose as much as 1.5 percent to $59.40 a barrel on the New York Mercantile Exchange.

Michelin, the world's largest tiremaker, climbed 1.1 euros, or 1.8 percent, to 62.75 euros. Morgan Stanley raised its estimate for the stock price 25 percent to 69 euros.

``Michelin is taking tangible steps to accelerate cost- cutting efforts, setting the stage for the margin expansion that investors have waited many years to occur,'' the analysts wrote in a note.

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

Egide SA (GID FP) increased 34 cents, or 1.3 percent, to 26.95 euros. The manufacturer of ceramic packages said first-half losses narrowed to 2.7 million euros from 7 million euros a year earlier.

Ingenico SA (ING FP), the world's largest maker of payment terminals, added 45 cents, or 2.6 percent, to 17.7 euros. Merrill Lynch gave the stock a ``buy'' recommendation in new coverage.

Valeo SA (FR FP) jumped 1.31 euros, or 4.6 percent, to 30. Europe's third-largest maker of car parts said it had signed a preliminary agreement to sell its motors and actuators unit to Nidec Corp. of Japan. The company also said third-quarter profit slumped 76 percent.

The sale of the motor unit ``is part of the good news,'' said Laurent Vallee, a fund manager at Richelieu Finance in Paris, which oversees $5 billion in assets. ``The valuation is affordable. That's what's maybe pushing investors to buy the shares today.''

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

Last Updated: October 20, 2006 04:11 EDT