(BFM Bourse) – Qontigo, the company in charge of pan-European indices, has announced the new compositions. Saint-Gobain will enter the Euro Stoxx 50 from September 18.
These are revisions that are very closely followed by the markets, if only because of passive management (that which consists of playing the indices) which has taken on more and more importance in recent years.
Qontigo, the company in charge of building the pan-European indices, which is also owned by Deustsche Börse, announced the revision of the composition of these same indices on Friday.
Consecration for Saint-Gobain, the oldest company in the CAC 40 (its origins date back to the 17th century under Colbert), will join the stock market elite of the euro zone on September 18, namely the Euro Stoxx 50, which already counts in its ranks. groups such as LVMH, TotalEnergies, Airbus, Siemens, Infineon and Volkswagen.
It’s not a huge surprise. UBS already noted in July that Saint-Gobain was a serious contender for a place in this index.
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Saint-Gobain’s superb stock market performance
The building materials specialist’s stock market history pleaded for this decision. Since the start of the year, Saint-Gobain has posted a 30% increase on the stock market, far exceeding the CAC 40 (+13%). The company is neck and neck with STMicroelectronics and Hermès to sign the strongest progression of the Parisian index this year.
Saint-Gobain has made a series of very high-flying publications, each time significantly exceeding expectations, whether for the annual results of 2022 or the indicators for the first quarter of 2023 and then the first half.
“We believe that the group is proving itself, with structurally higher margins (…) This should finally be recognized in its valuation”, underlined in July Stifel.
“Its exposure to new home construction continues to weigh on earnings so far. But we think that too should work in its favor over the next 6-18 months, especially if the recovery in Europe is driven by France and the periphery”, continued the financial intermediary.
This entry in the pan-European index should support the action, because the managers of index funds replicating the Euro Stoxx 50, will have to buy the title to fulfill their management mandate.
Kering exit from the Stoxx Europe 50 index
In addition to Saint-Gobain, a renowned brand will join the Euro Stoxx 50, namely the luxury car manufacturer Ferrari, which comes to salute the course of the Italian group since its entry on the coast in 2015.
The Maranello-based company has seen its share price rise by 140% over the past five years and is currently worth $70 billion on the Milan Stock Exchange.
As for the exits from the index, the German property company Vonovia, battered by the rate hikes which have weakened the valuations of listed real estate companies, will leave the Euro Stoxx 50 index on September 18.
The Stoxx Europe 50 index (which brings together 50 stocks throughout Europe, including the United Kingdom and Denmark), will see Kering leave its ranks, again from September 18. The luxury group is underperforming the markets (+4.6% since the start of the year), penalized by its lower growth compared to its competitors, due to the creative transition at Gucci, its flagship brand which accounts for more than half of its results Milan fashion week at the end of the month will be an important test for the brand and its artistic director, Sabato de Sarno.
The Dutch payments specialist Adyen, which experienced the big stock market gadin of the summer following the publication of results below expectations, will also leave this index. Conversely, the insurer ING and the reinsurer Munich Re will join it.
Julien Marion – ©2023 BFM Bourse
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