Paris  - Led by a surge of bank stocks after the French government's announcement of a capital injection, shares on the Paris Bourse ended trading on Tuesday with a modest gain, its third winning session in a row.

The benchmark CAC 40 closed up 0.78 per cent, to 3,475.40, with gainers and decliners running about even.

Bank stocks led the advancing issues after the French government announced late Monday that it would inject 10.5 billion euros (14 billion dollars) into the country's six-largest financial institutions by the end of the year.

Credit Agricole, which is to receive 3 billion euros, was up 15.74 per cent, at 12.09 euros, while Societe General (1.7 billion) gained 10.23 per cent, to 48.42 euros, and BNP Paribas (2.55 billion) rose by 7.48 per cent, to 59 euros.

Losers were led by steel-maker Vallourec, off by nearly 5 per cent, to 88.09 euros, while France Telecom fell by 3.95 per cent, to 20.16 euros. (dpa)