The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The hotel giant Accor signs its return to the CAC 40, the flagship index of the Paris Stock Exchange, more than three and a half years after its withdrawal during the pandemic, while Alstom, railway manufacturer, is pushed towards the exit, announced Euronext on Thursday.
“We are proud to see Accor re-enter the CAC 40, a major success which demonstrates the hard work and unfailing commitment of our teams,” said Sébastien Bazin, CEO of the hotel group, in a press release.
The CEO of the Accor group Sébastien Bazin, February 21, 2018 during a press conference at the group’s headquarters in Issy-les-Moulineaux (AFP/Archives/ERIC PIERMONT)
Historical value of the CAC 40, present when the index was created, Accor was removed from it in June 2020, while the group was suffering the brutal consequences of the Covid-19 pandemic on the tourism and hotel sector .
This exit allowed Alstom to return to the flagship index of the Paris Stock Exchange.
“Accor is an emblematic French company, its return to the CAC 40 allows us to close the Covid parenthesis, and this sends an interesting signal,” commented Lionel Melka, partner at Swann Capital.
“The split from Accor in 2010, which gave birth to Edenred, had pulled Accor to the bottom of the index ranking and the group could not resist” the economic shock of the time, he explains. .
Since March 18, 2020, the day after the start of confinement, Accor’s market capitalization has increased by around 67%, to almost 10 billion euros, but it still has a way to go compared to its peak in 2007. At that time, its market capitalization exceeded 16 billion euros.
– Alstom, a loss of confidence –
Conversely, Alstom’s “stock market performance is more chaotic”, noted Lionel Melka.
Because “Alstom is an emblematic company, a name that speaks to people, but which has not been able to create a relationship of trust with investors because of its financial problems,” he said.
Since the 5.5 billion euro takeover of the Canadian Bombardier Transport announced in January 2021, “which placed a heavy debt on Alstom’s shoulders”, underlined Lionel Melka, the market capitalization of the industrialist has melted by more than 65%, going from 13.2 billion euros to around 4.5 billion currently.
The railway industry group Alstom left the CAC 40 index of the Paris Stock Exchange, replaced by the hotel group Accor (AFP/Archives/Pascal GUYOT)
The last significant event for Alstom on the stock market dates back to October 2023, when the group saw more than 3 billion euros of market capitalization evaporate in the space of one session, with the dizzying fall of more than 37 % of its share price.
The railway manufacturer had announced that its free cash flow would be largely negative over its staggered 2023/2024 annual financial year, of the order of -500 to -750 million euros. This forecast contrasted with his previous commitment to investors when he announced that this indicator would move into “significantly positive” territory.
“Alstom has repeatedly disappointed in its ability to generate cash and as long as this element is not resolved and the group does not reassure investors, stock market momentum will not improve,” judged Charles de Riedmatten , manager of Myria AM.
The composition of the CAC 40, revised every quarter by the Scientific Council for Euronext Indices, takes into account two major criteria: the size of the floating capital (capital tradable on the stock exchange) and the number of exchanges recorded on the securities.
The changes to the composition of this index will take effect on Monday March 18, said the pan-European stock exchange operator, which oversees the Paris, Brussels, Amsterdam, Lisbon, Dublin and Oslo stock exchanges.
The expanded SBF 120 index sees the cement manufacturer Vicat enter, as does the oil company Maurel & Prom, while Clariane, Fnac Darty and Voltalia exit.
© 2024 AFP
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