(Boursier.com) — THE TREND
Slight drop in the CAC40 this Tuesday which nevertheless preserved the 7,200 points at 7,229 points, down 0.24%. The luxury sector fueled market consolidation, while the return of confidence regarding the end of the rate hike cycle, since October 30, allowed the CAC40 to recover more than 7% this month. In Europe, the interest rates of the European Central Bank have reached a plateau on which they are expected to remain over the coming quarters, declared François Villeroy de Galhau, member of the governing council of the ECB, deeming it “premature to speculate on a rate cut”… The ECB ended a streak of 10 consecutive hikes last month by leaving rates unchanged, prompting investors to question when rate cuts might take place.. The euro in the meantime remains firm at 1.09/$. Oil is sitting below $82 per Brent.
RISING VALUES
Xilam rises by 3% followed by Wendel,
Verimatrix : +2% with Aramis, Sergeferrari, Assystem
Neurons : +1.5% with Vantiva, Danone, K&B
Bastide : +1% followed by Sopra Steria, Thales, L’Oréal
Ubisoft : +0.5% with Scor, Hermès, Carrefour, Airbus, Séché, Dassault Aviation, Air Liquide
Airbus gains 0.5%. Aircraft lessor SMBC Aviation Capital has ordered an additional 60 aircraft of the A320neo family, bringing the total number of aircraft of this type purchased directly to Airbus at nearly 340 units. In addition to its existing orders for the A320neo family, this new order guarantees SMBC Aviation Capital a continued delivery flow beyond the end of the decade, strengthening the long-standing strategic partnership between Airbus and SMBC Aviation Capital in the A320neo family program.
Alstom (+0.5%). Exane BNP Paribas remains ‘neutral’ on Alstom with a target reduced from 18 to 14.5 euros.
TotalEnergies (stable) has finalized the sale to Suncor of all of the securities of TotalEnergies EP Canada, including in particular its interest in the Fort Hills oil sands asset and associated logistics obligations. The transaction was concluded for an amount of 1.47 billion Canadian dollars (approximately 1.1 billion US dollars), with an effective date of April 1, 2023. Including price adjustments, TotalEnergies received a cash payment at closing of 1.83 billion Canadian dollars (approximately 1.3 billion US dollars).
FALLING VALUES
Orpea logically continues its 15% decline, while the subscription period for the first capital increase of approximately 3.9 billion euros is open until next Monday, at the price of 0.0601 euros per new share. This bailout should mainly be done by offsetting debts. The clearance capital increase is in fact the subject of subscription commitments as a guarantee by Orpea’s unsecured creditors by way of offsetting debts up to the portion of the issue which would not have not been subscribed to by the holders of DPS.
Rally : -14% followed by Clariane (-12%) and Lhyfe (-10%)
AB Science : -7% with MdM, Elior (-6%) and McPhy
Fermentalg : -4.5% with Technip Energies, Casino, Covivio and Forvia
Renault falls by 3.5% below 35 euros. Analysts at the American bank Stifel remain ‘purchase’ on the stock, targeting 51 euros.
Valeo : -3% followed by Nacon, S30, Air France KLM, LNA, Equasens, Trigano, Gl Events
Stellantis : -2.5% with Vallourec, CGG, JC Decaux
LVMH yields 2%. The news surrounding the world number one luxury company is marked by a note from UBS which lowered its recommendation on the stock to ‘neutral’, targeting 770 euros compared to 829.4 euros previously. The bank expects the group to spend 2024 consolidating its market share gains, ending a years-long outperformance that made LVMH one of the most valuable companies in Europe. UBS says LVMH will continue to offer “one of the most defensive growth profiles in the luxury industry” going forward, but warns the shares may need a breather. The main risks reported for the future are a potential recession and a slowdown in the post-pandemic boom in luxury demand. The key aspects of the LVMH story in 2024 will be the organic sales growth of the key Fashion and Leather Goods division after a sharp sequential deceleration in the third quarter, and the sustainability of the division’s margins going forward.