THE TREND
(Boursier.com) — The CAC40 has practically lost the ground gained yesterday, falling 0.82% on Friday, back to 7,130 points.
The session was marked by a sharp acceleration in oil prices after Russia said it would cut oil production by 500,000 barrels a day next month in retaliation for Western sanctions. This drop, which is equivalent to about 5% of January production, had been mentioned several times by the Kremlin since the European Union and the G-7 began to discuss the price cap of Russian exports. The barrel of Brent from the North Sea (April deadline) gained 2.4% to $86.5 in London while the WTI (March delivery) gained 2.3% close to $80 on the Nymex. The two benchmarks posted a weekly gain of more than 8% and thus wiped out their losses at the start of the year.
Wall Street is resisting for the time being this Friday, the day after a correction led by the Nasdaq. Markets remain feverish and investors are very divided, as the latest comments from regional Fed officials showed the determination of the American central bank to fight inflation again by keeping rates at a restrictive level for an extended period . Previously, Jerome Powell, head of the American monetary institution, had meanwhile left hope for a monetary pivot by acknowledging the start of the disinflation process.
According to the CME Group’s FedWatch tool, the probability of another 25 basis point rate hike on March 22, following the upcoming monetary meeting, stands at 90.8%, down from 9.2%. probability for a move of 50 basis points. The US fed funds rate range is currently 4.5 to 4.75%, after a quarter-point rise at the start of the month. The Fed’s Christopher Waller and Patrick Harker will speak again this Friday.
RISING VALUES
* Leading the CAC40, TotalEnergies gained 2.6% to 59.35 euros, driven of course by the rise in barrel prices. UBS also reiterated its ‘buy’ advice and its target price of 65 euros.
* Orpea soared 50% to 3.66 euros. Massacred since the beginning of the year on the stock market, the title of the operator of retirement homes had already rebounded by 20% on Thursday after announcing that the Canadian Pension Plan Investment Board (“CPPIB”) had sold on the market 7.424. 188 shares between February 2 and February 7, which had therefore fueled the downward pressure. Following this operation, CPPIB (which held 14.50% of the capital and 24.16% of the voting rights of the Company) had only 1,950,000 shares left, representing 3.01% of the capital and 5. 02% of Orpea’s voting rights.
* Thales rises 2.5% to 122 euros, driven in particular by the good results of the Swedish Saab. The new attacks launched today by Russia in Ukraine also seem to have an effect on the defense equipment sector.
* Akwell (+1.7% to 16.7 euros) recorded consolidated revenue for 2022 of 988.5 ME, up 7.1% and 11.3% at constant scope and exchange rates. During the last quarter of 2022, revenue of €249.4 million increased by +11.5% as reported and by +14.6% at constant scope and exchange rates. Akwel specifies that its annual turnover remains however down by around 10% with regard to the year 2019, the last financial year before the health crisis and the fall of the world automobile market.
FALLING VALUES
* Up this morning, L’Oreal finally lost 0.8% to 375.6 euros. The cosmetics giant has unveiled solid annual results with operating profit up 21% to 7.46 billion euros for a turnover of 38.26 billion euros, up 18.5% as reported and 10.9% like-for-like. The group share of net income came to 5.7 billion euros, up 24.1%. The Board of Directors has decided to propose to the General Meeting of Shareholders on April 21, a dividend of 6 euros, an increase of 25%. “Aware of the current uncertainties, we are nevertheless still ambitious for the future, optimistic about the outlook for the beauty market and confident in our ability to outperform the market again and achieve, in 2023, another year of growth in the number revenue and results,” said Nicolas Hieronimus, CEO of L’Oréal.
* Aperam (-7.4% to 33.7 euros) generated in 2022, an EBITDA of 1,076 million euros, including an exceptional loss of -53 million euros, compared to an EBITDA of 1,186 million euros in 2021, including an exceptional gain of 126 million euros. EBITDA reached 129 million euros in the fourth quarter of 2022, compared to 235 million euros in the third half of 2022 and 462 million euros in the fourth quarter of 2021, including an exceptional gain of 117 million euros. Net profit stands at 625 million euros in 2022, compared to 968 million euros in 2021. Basic earnings per share is 8.33 euros in 2022, compared to 12.21 euros in 2021.
* Renault returned 2.3% to 40.9 euros but gained almost 5% over the week, bringing its gains since the start of the year to almost 30% after the presentation of the Alliance revamp with Nissan and Mitsubishi. In addition, the manufacturer announced that Nissan’s contribution to its own results is estimated at 174 million euros in the fourth quarter. Nissan’s total contribution to Renault’s annual results now stands at 526 million euros. We have to go back to 2018, before the appearance of the financial difficulties of the two groups and the fall of Carlos Ghosn, to find a higher contribution.
* Bouygues lost 0.6% to 30.5 euros. The Paris Commercial Court has handed down a judgment which condemns Bouygues Telecom to pay Free Mobile 308 million euros in damages, and indicates that “the provisional execution is by right”, which according to Bouygues Telecom, is inaccurate in the case of proceedings initiated before January 1, 2020. Bouygues Telecom contests this judgment and considers that its bundled offers are legal. The court’s decision is part of a series of litigation launched by Free Mobile against its competitors and their offers grouping smartphones and mobile plans, called “with subsidy”. This case between Free Mobile and Bouygues Telecom concerns former offers from Bouygues Telecom. No amount has been provisioned in the latest accounts closed by Bouygues Telecom as of September 30, 2022. This judgment is not final and Bouygues Telecom is appealing to the Paris Court of Appeal.