(Boursier.com) — THE TREND
Slight drop in the CAC40 which preserves the 7,200 points. The reference index of the Paris stock exchange fell 0.2% at the end of the morning around 7,230 points with a fairly calm record. The luxury sector weighs a little on the trend.
The return of confidence in the markets regarding the end of the cycle of rate increases, since October 30, has allowed the CAC40 to recover more than 7%. In Europe, the interest rates of the European Central Bank have reached a plateau where they should remain in the coming quarters, declared Monday François Villeroy de Galhau, member of the governing council of the ECB, judging it “premature to speculate on a reduction in rates. 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.
RISING VALUES
* Airbus gained 0.3% to 133.4 euros. 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 increases 2.4% to 12.7 euros. Exane BNP Paribas remains ‘neutral’ on Alstom with a target reduced from 18 to 14.5 euros.
* TotalEnergies (stable at 63 euros) finalized the sale to Suncor of all of the securities of TotalEnergies EP Canada, including in particular its participation 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
* LVMH lost 1.4% to 708 euros. 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.
* Renault falls by 1.8% below 35 euros. Analysts at the American bank Stifel remain ‘purchase’ on the stock, targeting 51 euros.
* Orpea logically continues its decline of around 8% to 0.36 euros while the subscription period for the first capital increase of around 3.9 billion euros is open until next Monday, at a price of 0.0601 euro 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.