(Boursier.com) — THE TREND
The Paris Stock Exchange rose close to 8,100 points this weekend with a rebound of 0.85% which almost canceled the three previous sessions of decline. American indices rose last night and the ECB meeting confirmed expectations of a first cut in key rates in June.
The slowdown in inflation was also confirmed in France in March. The progression of the consumer price index (CPI) slowed down to +0.2% in March after +0.9% in February, final data from INSEE show. Core inflation fell again year-on-year to +2.2% in March, after +2.6% the previous month.
RISING VALUES
* At the top of the CAC40, Societe Generale rose by 4.5% to 26.4 euros after a new sale of assets. The bank’s Board of Directors, meeting under the chairmanship of Lorenzo Bini Smaghi on April 11, indeed approved the sale of the shares of the Société Générale group (57.67%) in Société Générale Marocaine de Banques including its subsidiaries and the sale of all the shares held by Sogécap in the insurance company La Marocaine Vie. The Saham group would take over all of the activities operated by these subsidiaries and their customer portfolios, as well as all of the employees of these entities. This divestment project is part of the execution of Societe Generale’s strategic roadmap, presented in September 2023, which aims to shape a simplified, more synergistic and efficient model while strengthening the Group’s capital. The transaction would be carried out at a price of 745 million euros and would have a positive effect estimated at around 15 basis points on the Group’s CET1 ratio upon finalization of the transaction which could take place by the end of 2024. The announcement of this agreement induces a negative accounting impact of approximately -75 ME on the Group’s 1st quarter 2024 results.
Quoting…
* TotalEnergies breaks new stock market records this Friday at 69 euros (+2%). The energy giant remains in demand in the wake of crude prices which are still at their highest level in 5 months against a backdrop of increased geopolitical risks in the Middle East and tightening global supply. Among the latest brokers’ opinions, Cowen retains the file while Iranian armed threats against Israel raise fears of a conflagration in the region, while Morgan Stanley ‘overweights’ TotalEnergies by targeting a price of 78 euros.
* Publicis advances 0.4% to 104 euros and establishes a new historic high this Friday. The group yesterday published better-than-expected quarterly results thanks to its data and media activities, its “dynamic of gains in new business” as well as a “clear rebound” in the technology sector. Over the period from January to March, Publicis recorded net income of 3.23 billion euros, representing organic growth of 5.3%, higher than the 4%/5% range announced last February. The company confirmed its forecasts for the year, with organic growth anticipated between 4% and 5%, describing its 4% target as “very solid”. For the second quarter, organic growth should be in the same range. Among the latest broker opinions, Barclays overweights Publicis with a target raised from 107 to 115 euros, while Morgan Stanley (‘overweight’) believes that the strong overall organic growth in the first quarter, despite the relative weakness of Sapient, will convince the market that Publicis can “at least” achieve the high end of its guidance for the 2024 financial year.
* Airbus gained 1.5% to 164.7 euros. Jefferies is buying Airbus with a price target that goes from 165 to 195 euros.
FALLING VALUES
* No drop exceeds 1% among the CAC40 values.
* Soitec lost 1% to 92.9 euros. Citigroup remains ‘neutral’ with a price target reduced from 145 to 100 euros. JP Morgan ‘underweights’ the file with a target price adjusted to 95 euros, while Morgan Stanley had already downgraded the stock to ‘line weighting’, while clearly cutting its target to 102 euros. Decisions which follow the reduction of the forecasts of the specialist in innovative semiconductor materials for the 2025 financial year, the correction of current stocks continuing to impact sales…