(BFM Bourse) – The specialist in household appliances and cultural goods will leave the second major index of the Parisian market on March 18. Logically, managers who follow this index will have to sell the stock.
A little more than six years after joining it, Fnac Darty is preparing to say “goodbye” to the SBF 120. The decision fell on Thursday evening, certainly being a little overshadowed by the announcement of Accor’s return to the CAC 40.
Euronext announced that its scientific council had decided to remove the household appliances and cultural goods distribution group from the SBF 120. Just like the retirement home operator Clariane (formerly Korian) and the renewable energy specialist Voltalia . Conversely, the cement manufacturer Vicat and the oil group Maurel et Prom will join the SBF 120.
These changes will take place on March 15 after the market closes and will therefore be effective at the opening on March 18.
Following this announcement, Fnac Darty shares found themselves a little under pressure this Friday, with the shares losing 2.6% around 3:40 p.m. after having lost more than 3.5% in the morning.
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Not spared by inflation
“The decline in the stock may be linked to the upcoming release of Fnac Darty’s SBF 120. As a general rule, when a stock leaves a major benchmark index, a downward movement is observed because investors who follow this index and ETF managers (Editor’s note: index funds) sell the value”, judges Florent Thy-tine analyst at TP ICAP Midcap.
“Even if this is observed rather on the actual day of the release of the index and it should be emphasized that the Fnac Darty share is very volatile,” he explains.
The ousting of Fnac Darty comes at a time when the group led by Enrique Martinez is experiencing a rather complicated journey. The value has done absolutely nothing since the start of the year (+1%) and has fallen by almost 24% over one year.
Like other specialized distribution groups, Fnac Darty has suffered from inflationary pressures which have encouraged households to be cautious about discretionary goods and spending. In 2023, its revenues fell by 1.1% on a like-for-like basis and its current operating margin fell from 2.9% in 2022 to 2.2%.
“The group hopes for a recovery in consumption thanks to a lull on the inflation front but the figures published by the Bank of France show consumption still at half mast,” noted Florent Thy-tine in a note published at the end of February.
Julien Marion – ©2024 BFM Bourse
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