THE TREND
(Boursier.com) — The Paris stock market has gone down again after its small jump the day before. The CAC40 lost 0.35% to 6,450 points after briefly returning in the morning below 6,400 points.
Still no rebound in sight either Wall Street... The American market, which finished in the red for the fourth consecutive session last night, is still down (limited) this evening. Concerns about global growth next year remain strong after aggressive rhetoric from the Fed and the ECB last week, ready to do anything to win their fight against inflation, including seeing their respective economies fall into recession.
This morning, it was the Bank of Japan that came to unveil a surprise adjustment to its monetary policy… The institution eased its yield curve control policy, deciding to allow the yield on government bonds ten years to fluctuate by 50 basis points in both directions in relation to the 0% objective, against 25 points previously. The bank thus took observers by surprise, who did not anticipate any change before the departure of Governor Haruhiko Kuroda, whose mandate ends next April. While the BoJ has not touched its interest rates, as expected, the markets are now wondering about the next step as the end of Haruhiko Kuroda’s mandate looms and inflation is expected to remain above of the 2% objective for a good part of 2023… The euro remains at 1.06/$. Oil falls back below $80 to $79 a barrel of Brent.
RISING VALUES
Elior wins more than 4% and erases part of the 8% lost on Monday. Unsurprisingly, the collective catering group will indeed take over the Multiservices division of Derichebourg. An operation which will be financed by Elior shares and which will increase the stake in the capital of Derichebourg, the reference and long-term shareholder, to 48.4%. The group evokes a significant potential for value creation with at least 30 ME of annual run rate EBITDA synergies and a double-digit positive impact on earnings per share from the 2023-2024 financial year. The acquisition will be entirely remunerated by the issue of Elior Group shares to Derichebourg on the basis of a value of 5.65 euros per share.
Vallourec : +4% with poxels (+3%) MdM and Eramet (+2.5%)
Few significant increases on the CAC40. BNP Paribas rises by 1.5%, Societe Generale gained 2.2% after the December 15 completion of its share buyback program, launched August 8, for cancellation. A total of 41,674,813 Societe Generale ordinary shares were bought back for a total amount of €914.1 million. They will soon be cancelled.
M6 : +2% with Eutelsat, Virbac (+1.5%)
Coface : +1% followed by Imerys, Eurofins, Score
FALLING VALUES
Nakon : -7% with Forsee Power (-5%)
Valeo : -4% with country house,Aures and Casino (-3.5%)
Kering loses 3.5%. The luxury group is again the victim of an analyst’s note since this time it is SocGen which has downgraded the file to ‘keep’. The bank also cut its target from 690 to 525 euros. The market is now more divided on the value. If no analyst sells the file, they are only 19 to ‘buy’ for 13 to ‘keep’. The twelve-month target is set at 611.1 euros.
Engie drops more than 3%, weighed down by two bad news. The group first announced that the Belgian authorities were asking it to increase the amount of its provisions for its nuclear activities in the country by 3.3 billion euros. The Belgian Nuclear Provisions Commission (CPN) intends to increase the provisions by 2.9 billion euros for those carried by its subsidiary Synatom and by 0.4 MdE for those carried by Electrabel. These provisions relate to the dismantling of power plants and the management of spent fuel. Second bad news for Engie, taxes on electricity sales – introduced by countries such as France, Belgium and Italy to help offset soaring energy prices for consumers – could reduce EBIT of the group between 0.7 and 0.9 billion euros in 2022 and between 1.2 and 1.5 billion euros in 2023. Engie nevertheless confirmed its 2022 guidance. The firm reserves the right to contest the taxes which, according to his opinion, would not respect the existing legal framework and would introduce unjustified discrimination between operators or technologies, in particular in Belgium and Italy.
Tarkett : -3% followed by Latecoere, Renault, claranova
Antine : -2.5% with Gecina, Neoen, DS, Icade, S30
Stellantis (-1.7%) announced the ramp-up of production of the all-new M3 electric motor, the fruit of the Emotors joint venture, at its Trémery site in Lorraine. With an installed production capacity of more than 1 million engines per year from 2024, Stellantis is strengthening its industrial footprint to achieve its objective of marketing 100% electric vehicles in Europe by 2030, in accordance with its Strategic Plan Dare Forward 2030 while following its roadmap towards carbon neutrality.
Orange (-1%) announced the departure of Ramon Fernandez, Deputy Chief Executive Officer Finance, Performance and Development at the end of the first quarter of 2023. Ramon Fernandez, who has been in charge of finance for the Orange group for eight years, has decided to take on new challenges professionals outside the Group, explains Orange. Between now and his departure, he will continue to fulfill his current duties within the Executive Committee. He will thus continue his work, in particular on the preparation of the next strategic plan, alongside Christel Heydemann and the management team. His successor will be announced in the coming weeks.