Here is the analysis of the evolution of the Paris Stock Exchange on Tuesday May 7 with the experts from Meilleurtaux Placement.
Markets: Sell in may and go away?
on the eve of the victory of May 8, 1945, the Paris Stock Exchange gained 0.99% this evening to settle at 8075 points at the close. In the absence of economic indicators, investors listen to the interventions of central bankers and take into consideration the still numerous company results, even if the majority of publications have already been made.
Bouygues, one of our French flagships, announced a net profit share of the group of 146 million euros for the first quarter of 2024, with a loss which widened by 12 million in one year, making it the largest drop in the CAC 40.
Apart from the results, Remy Cointreau gained 7.7% and Pernod Ricard recorded an increase of 3%, the two spirits groups being supported by the declarations of Emmanuel Macron. We’ll tell you more about it later!
In terms of seasonality, over the last 25 years, the momentum remains relatively good for May 7 and 8 with an average increase of 0.96% before returning to the path of decline in line with the “Sell in May and go away” .
Values: Pernod Ricard, Bouygues and Clariane
Pernod Ricard This evening Pernod Ricard posted an increase of 3.08% to 145.65 after encouraging statements from Emmanuel Macron concerning the Chinese market. The President of the Republic announced that Xi Jinping, the Chinese President, had undertaken not to apply the provisional sanctions against French cognac. These measures were introduced after an anti-dumping investigation into European Union spirits, threatening the Chinese market. This promise therefore restored investor confidence, causing a jump in the shares of Pernod Ricard and Rmy Cointreau (+6.00%), although the latter progressed more due to its increased dependence on the Chinese market. In 2024, the stock will still lose almost 10%.
Bouygues Red lantern of the CAC 40, Bouygues yields 1.56% to 34.8 after the conglomerate announced an operational result lower than expectations. The group achieved a turnover up 3% in the first quarter, 12.3 billion euros. However, its current operating income from activities stood at only 26 million euros, well below the consensus of 34 million. The group’s net loss also worsened, reaching 146 million euros, mainly due to the difficulties encountered by the Bouygues Immobilier real estate branch. The order book for this division fell by 29% compared to the previous year, a sign of a difficult real estate market. Despite this disappointment, Bouygues is maintaining its forecasts for 2024, aiming for slight growth in turnover and current operating income from activities. The stock has gained more than 2% since the start of the year.
Clariane Clariane (Ex-Korian) climbs 7.78% this evening to 2.77 after the announcement of a promise to purchase by the Fondation Sant Service for home hospitalization activities and home care services. This transaction concerns eight home hospitalization establishments and three nursing service agencies, with a turnover of 46.5 million euros in 2023. The entire proceeds of the sale are intended to reduce debt as part of the restructuring plan. This transaction marks a new stage for Clariane in its divestment strategy, adding to the disposals carried out in the United Kingdom and the Netherlands. In total, the group has reached 40% of its disposal program and has gained more than 15% since the start of the year.
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Tomorrow’s headlines: Victory, markets open!
Tomorrow, as France celebrates the Victory of May 8, 1945, a thought goes to traders and investors who will keep an eye on the markets since the Paris Stock Exchange remains open Wednesday and Thursday. On the macroeconomic side, activity will be rather calm. However, Ubisoft will reveal its first quarter figures in France, and Cisco will present them in the United States.
The world after: Apple reinvents its iPads, AI is there!
At the dawn of its annual conference, Apple revealed a new iPad Air model, enlarged and equipped with the latest M2 chip, marking an attempt to catch up in the field of artificial intelligence. By unveiling these new iPads priced from $600 to $800, Apple is not only targeting traditional educational markets but is also targeting creative professionals, potentially by integrating new AI features into its Pro models at its upcoming conference. developers.
This update appears to be a strategic response to the advances of its competitors like Microsoft and Google, which have already invested heavily in AI. With its shares down 6% since the start of the year and facing intense competition, particularly in China, Apple is betting big on AI to revitalize its image as an innovator and its performance on the market.
Expectations are high for future announcements, particularly how Apple will integrate AI to transform user interaction with its devices while maintaining privacy. For the moment, the market seems to be welcoming the news, to be continued!