THE TREND
(Boursier.com) — The rebound of the CAC40 is gaining momentum at the end of the morning and allows to find the 7,000 points. After dropping nearly 2% yesterday, the Parisian index is currently up 0.84% to 7,010 points.
The state of mind still remains cautious after 11 bullish sessions during the first 13 of 2023 which still allow the CAC40 to progress by more than 8% since January 1st. It is indeed the uncertainty as to the monetary policy of the Fed, but also of the ECB, which is in the minds of investors, they who were perhaps too quickly convinced that a “pivot” would be possible after the signs of inflation moderation.
The latest comments from Fed officials signaled that the US central bank was not yet ready to ease off or “pivot”, still too preoccupied with inflation. In the same spirit, Christine Lagarde and Klaas Knot warned, on the European side, that investors were undoubtedly going quickly to work in their monetary expectations… were bolstered by strong US jobs data and several speeches from central bank officials.
RISING VALUES
* Vallourec (+3.4% to 13.4 euros) recently won large orders from LLOG Offshore Exploration, one of the largest private exploration and production companies in the United States, for the delivery of 25,000 tons of line tubing as part of the Salamanca deepwater development project off the US Gulf Coast.
* GL Events jumped 6% to 19.7 euros, driven by an excellent annual publication. The events specialist reported 2022 turnover of €1.315 billion, up 77.4% compared to the previous year with organic growth of +73.5%. This new revenue record for GL events was achieved thanks to a doubling of activity in Europe and a tripling in the Americas, which more than offset the withdrawal from Asia, still penalized by the confinements still in force in China over the period.
* Leading the CAC40, Thales gained 2% to 120.3 euros. The GME (Momentary Grouping of Companies) coordinated by the company NSEwhich groups Saffron Electronics & Defense, Sofema and Thales, won the Mercure contract from the SIMMT (Integrated structure for maintenance in operational condition of land equipment). With a maximum value of nearly 300 million euros excluding tax, over a period of 7 years, this contract notified on December 16, 2022, will allow the Ministry of the Armed Forces to respond to the problems of managing the great diversity of its needs in terms of armed forces equipment and the need to acquire equipment in a reactive and flexible manner. The solution provided by the GME coordinated by NSE fully meets these challenges, by combining the strong and recognized expertise of French manufacturers and distributors who are leaders in their sector.
* Orpea resists with a title that advances by 1.8% to 6.95 euros despite a future still as vague. And for good reason, the discussions between a consortium of third-party French investors led by the CDC and a group of unsecured financial creditors holding around 50% of the company’s unsecured debt ended in failure… the efforts of the various parties to reach an agreement, the operator of retirement homes notes “with regret that the respective expectations of the consortium of investors and the group of unsecured financial creditors concerned in terms of valuation do not make it possible to find a deal”. Orpea says it wants to continue discussions with the group of unsecured financial creditors whose “support is necessary to reach an agreement on a restructuring plan” in accordance with its proposal communicated to the market on November 15, 2022, namely the capitalization of 3 .8 billion euros of unsecured debt of the company and a capital increase of between 1.3 and 1.5 billion euros.
* Airbus gained 1.2% to 118.3 euros. Uzbekistan Airways has placed a firm order with Airbus for 12 A320neo Family aircraft (eight A320neos and four A321neos). The choice of engines will be made later by the national company of the Republic of Uzbekistan. It plans to operate its new aircraft to further develop its network of domestic and international routes. With more than 8,600 orders from more than 130 customers, the A320neo Family aircraft are the most popular in the world.
FALLING VALUES
* Largest drop in the CAC40, Michelin loses 3% to 28 euros. RBC downgraded Michelin to ‘sector performance’ with just 28 euros in sight.
* Faurecia lost almost 3% to 17 euros. Jefferies downgraded the supplier to ‘underperform’ with a price target reduced from 22 to 15 euros.
* Renault yields 1.3% to 36 euros. RBC is only aiming for 31 euros on Renault (‘sector performance’).
* Boiron sees red (-7.6% to 44.7 euros) the day after the presentation of a 2022 turnover of 534.23 ME, up 17.4%. In France, despite the decline in sales of nonproprietary homeopathic medicines, the increase was 9.4% thanks to the increase in sales of homeopathic specialties and other health products. Given the significant change in sales over the year, annual operating profit is estimated to be higher than that published in 2021. Management had previously hoped for “a significant change in profitability”.