2023-04-24 18:20:07
Baptiste Morin / Photo credit: Martin BUREAU / AFP
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8:23 p.m., April 24, 2023
LVMH, the world leader in luxury, has just entered the Top 10 of the largest listed companies across the globe. LVMH is driven by the economic recovery in China, Asia being the second largest luxury market. Since January 1, the group’s share price has jumped 30%.
The Paris Stock Exchange closed at equilibrium (-0.04%), this Monday, April 24, at the end of a session notably marked by the record market capitalization of the luxury giant LVMH, which reached 500 billion. of dollars. LVMH, Hermès and L’Oréal represent a third of the CAC 40 in terms of capitalization, these luxury companies “have become safe havens for the markets and this capitalization of LVMH is hardly surprising”, notes Ilana Azuelos-Bossard, deputy director at Kiplink Finance.
Top 10 most valuable companies in the world
The market capitalization of LVMH (+0.10% to 902.00 euros) reached 500 billion dollars, or 454 billion euros, which is a first for a European company, according to Bloomberg. Earlier in April, following the publication of its quarterly results, LVMH had entered the top 10 of the most valued companies in the world.
Since January 1, the group’s share price has jumped 30%. It was less than 700 euros four months ago, today it is more than 900 euros. LVMH is driven by the economic recovery in China, Asia being the second largest luxury market, which explains the excellent results in the first quarter, up 17% over one year. The group attracts investors and the price goes up, many see the group going a little further.
The action might reach 1,000 euros
For example, Bank of America estimates that the action might reach 1,000 euros, a further increase of 10%. This news is excellent for the shareholders of LVMH, but also for the employees of the group. The superb results of the group in 2022 allowed, for example, French employees to receive an average of 10,000 euros in profit-sharing and participation. “The performance of the CAC 40 since the beginning of the year has been largely driven by this sector, Hermès being the best performer, followed by LVMH and L’Oréal”, underlines Michael Hewson of CMC Markets.
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