The Paris Stock Exchange gained 1.27%, a new record, above 7,900 points – 02/22/2024 at 7:00 p.m.

The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)

The Paris Stock Exchange ended sharply up 1.27% on Thursday and finished above the threshold of 7,900 points for the first time, driven by a wind of optimism after the results of the American electronic chip giant Nvidia.

The flagship CAC 40 index advanced 99.51 points to 7,911.60 points, its new closing record. During the session it reached a new high at 7,923.96 points. On Wednesday, the CAC 40 had already closed at a historic level after gaining 0.22%.

“There was a lot of good news today,” comments Arnaud Morvillez, fund manager at Uzès Gestion.

First, the European markets woke up on the right foot thanks to record results that exceeded expectations from Nvidia: taking advantage of the rise of artificial intelligence, the American electronic chip giant multiplied its net profit sixfold, to nearly $30 billion, over its entire annual fiscal year ended at the end of January.

And demand is not weakening since the American company is counting on $24 billion in turnover for the current quarter.

“Nvidia has reassured everyone and presents very good prospects,” greets Mr. Morvillez.

The Franco-Italian manufacturer of electronic components STMicroelectronics took advantage of this and gained 2.95% to 42.21 euros. The semiconductor materials group Soitec gained 2.69% to 143.10 euros.

Then, the PMI barometers of economic activity in Europe reinforced optimism. Private sector activity contracted further in February in the euro zone, for the ninth consecutive month, but the rate of decline is weaker than in January, a similar trend being observed in France.

For Arnaud Morvillez, these data fuel the “low point scenario for growth in the first quarter”, with the worst possibly over.

As for the minutes of the latest meetings of the American and European central banks, “the message is that as long as we do not have clear signals that inflation is converging towards the 2% target, neither of the two central banks will will rush to lower rates”, according to Arnaud Morvillez.

Axa cajoles its shareholders

Driven by price increases in damage insurance, the French insurer Axa achieved a net profit of 7.19 billion euros in 2023 (+45% over one year), which it plans to redistribute three-quarters to its shareholders. Its action rose 2.84% to 32.06 euros, the highest since 2007.

Accor gets investors to agree

The French hotel giant posted net profit up 57% in 2023, to 633 million euros, and crossed the billion-euro gross operating surplus mark for the first time. Its action jumped 6.56% to 40.45 euros.

Sopra Steria at the top of the SBF 120

The biggest increase in the SBF 120, Sopra Steria jumped 9.74% to 232.20 euros.

The IT services group published a 13.8% increase in its turnover in 2023 and announced the sale of its banking software Sopra Banking Software for an enterprise value of 330 million euros.

Almost flawless in the results

Plastic Omnium (+6.82% to 11.12 euros), Seb (+1.96% to 114.60 euros) and Bureau Veritas (+7.52% to 27.03 euros) progressed after appreciated results.

Only Imerys disappointed with a plunge in its net profit of 78% in 2023, which caused its share price to fall by 4.33% to 30.92 euros.

Euronext CAC40

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