2023-10-11 16:47:45
The Paris Stock Exchange closed down 0.44% on Wednesday, led by the luxury giant LVMH which dropped more than 6% following announcing sales that were worse than expected by analysts.
The flagship CAC 40 index dropped 31.22 points to 7,131.21 points. On Tuesday, the Parisian rating jumped 2.01%, its best performance since July, thanks to the decline in American bond rates.
The Paris session was marked by the negative reaction of investors to the third quarter results of the world’s number one luxury goods company, LVMH. The stock fell 6.46% to 686.10 euros.
Bernard Arnault’s group announced that it had achieved a turnover of 19.96 billion euros in the third quarter, an increase of 1% year-on-year, a figure lower than forecasts.
The market capitalization of the luxury group, that is to say the sum that would have to be paid to buy all its shares, is now around 344 billion euros, a fall of 24 billion euros in one session . More than a quarter of CAC 40 companies are not valued as highly by investors.
Above all, “these results reflect the macroeconomic situation”, comments Alexandre Baradez, head of market analysis at IG France.
“We see that the tightening of monetary policies” carried out by the European and American central banks “affects all sectors, with money being less available and more expensive,” continues the analyst.
The “problems of China’s resumption of activity since the end of confinement also stand out” in these results, the group’s growth slowing down in this geographical area, adds Alexandre Baradez, while China is struggling to restart since “the end of confinement”.
The other luxury stocks listed in Paris also closed in decline: Kering fell by 1.42% to 427.95 euros and Hermès by 1.50% to 1,751 euros.
The joint venture bringing together the car manufacturer Stellantis rose 2.17% to 18.83 euros following the announcement that its joint venture with the giant Samsung would invest more than 3.2 billion dollars in the construction of its second battery mega-factory for electric cars in the United States.
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