The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed down 0.17% on Wednesday, penalized by the rout of the luxury group Kering and the laboratory giant Eurofins.
The flagship CAC 40 index lost 13.92 points to 8,091.86 points. The day before, it had gained 0.81%, ending at its highest level in two weeks.
The session was “punctuated by company publications”, comments Vincent Juvyns, member of the JPMorgan AM strategy team.
As stocks are “not considered cheap at the moment, their future progress will depend above all on the growth of their results”, continues Vincent Juvyns.
Investors are particularly waiting to know the results of American giants in the technology sector.
“These heavyweights have yet to arrive” but the equivalent of “48% of the American market capitalization has already published its results this week,” he stressed.
The Parisian market, like other stock markets, also suffered from a rise in bond rates.
In Europe, the 10-year German bond, which is the benchmark in Europe, was at 2.59% compared to 2.50% on Tuesday. The French at the same maturity moved at 3.09% against 2.99% the day before.
Kering sanctioned
Kering’s shares fell 6.87% to 326.15 euros, falling to their lowest level since 2017, with investors punishing the fall in sales and the plummeting operational profitability, mainly because of its flagship brand Gucci. .
Compared to its peak in June 2021, Kering’s stock has even fallen by 60%. “The group is not showing overwhelming optimism for the second quarter,” note Oddo BHF analysts.
Orange does not convince
The French telecoms giant Orange achieved turnover up 3.5% in the first quarter, based on published data, and confirmed its financial forecasts for 2024.
However, the stock dropped 3.58% to 10.65 euros, the third biggest decline in the flagship index.
Among “the less good news”, according to Oddo BHF analysts, the market notes that in France, “Orange has lost 40,000 internet customers” after having already lost “30,000 in the previous quarters since the price increases” decided by the group.
“France’s new management will have to restore commercial dynamics because price increases cannot continue,” they stressed.
Air Liquide in decline
The industrial gas group Air Liquide achieved a turnover of 6.65 billion euros in the first quarter of 2024, a decline of 7.3% mainly due to the drop in energy prices, as well as an unfavorable exchange rate effect, he announced on Wednesday.
The company, the 8th most valued on the CAC 40, fell 2.32% to 186.14 euros.
STMicroelectonics driven by favorable winds
The semiconductor sector in Paris is driven by an upward revision in the turnover of Dutch chip supplier ASM International, which jumped more than 10% in Amsterdam.
Stmicroelectronics shares climbed 5.39% to 39.22 euros, the best performance in the CAC 40. In 2024, it still remains down 13.32%.
© 2024 AFP
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