2024-01-03 04:00:00
The flagship index of the Paris Stock Exchange, the CAC 40, had an exceptional year in 2023, posting an increase of 16.52% to stand at 7,543.18 points. This is its third best performance in the last ten years, mainly driven by a slowdown in inflation at the end of 2023.
A promising start and end to the year
The CAC 40 made significant progress at the start and end of 2023, reaching its all-time high in December at 7,653.99 points.
On Friday alone, the index closed up 0.11%.in a rather calm market due to the absence of indicators and participants in the markets.
Falling inflation: a key element for the performance of the CAC 40
One of the main reasons behind this remarkable performance is the decline in inflation.
The end-of-year figures reassured investors regarding the ability of central banks to lower their key interest rates following significant increases in 2022 and a pause during the second half of 2023.
85% of CAC 40 stocks up in 2023
This year was marked by an exceptional performance of certain stock markets.
Among the 11 listed companies that recorded a significant increase, their shares rose more than 30%. Of the 40 companies, 34 closed the year in progress.
Here are the 5 best performances of the CAC 40 in 2023:
At the top of the list, the manufacturer Stellantis stands out. This group manages 14 renowned brands (Citroën, DS Automobiles, Opel, Peugeot, Vauxhall, Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, and Ram).
Its stock price increased spectacularly by 59.34%going from 13.36 euros at the start of the year to 21.14 euros on Friday December 29.
French bond rates for 2024
The yield on the ten-year French bond closed the year at around 2.56%, far from its peak two months ago at almost 3.60%.
According to Aurélien Buffault, director of bond management at Delubac AM, “Investors may look to be patient as once the rate cuts begin there will be a strong psychological effect for this trend to continue. »
A contrasting selection of stocks within the index
The year 2023 saw a diversity of performances between the different stocks making up the CAC 40.
Thus, the SBF 120 index, broader than the CAC 40, achieved an increase of 15.26% for the year 2023. Among the companies having experienced contrasting results:
- The SBF 120 index increases by 15.26% in 2023
- Alstom penalized by its commercial and financial difficulties
- Kering down 16.09% despite the luxury sector
- Worldline demoted in the index following poor stock market performance
Alstom penalized by its commercial and financial difficulties
French manufacturer Alstom saw its stock market value fall by 46% over the year, due to commercial and financial problems.
Kering down 16.09% despite the luxury sector
The Kering group, owner of luxury brands such as Gucci and Yves Saint Laurent, is one of the rare companies in the sector to experience significant disinterest from investors with a fall of 16.09% for the year 2023.
Worldline demoted in the index following poor stock market performance
The electronic payments specialist Worldline was downgraded from the main CAC 40 index due to poor performance on the stock market during 2023 with a loss of almost 60% during a single session.
Outlook for 2024: can the upward trend continue?
Will the factors that contributed to the rise in the CAC 40 in 2023 be maintained in 2024?
The evolution of inflation, key interest rates and the global economic context will all be key elements to follow to anticipate future trends. Investors will therefore have to remain attentive to the next signals sent by central banks and the market.
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