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The Paris Stock Exchange’s flagship index, the CAC 40, ended 2023 at 7,543.18 points, an annual gain of 16.52% and representing the third best performance in the last decade, thanks in particular to the decline in inflation.
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The control room of Euronext, the company that manages the Paris Stock Exchange. Photo: AFP/VNA/CVN
The CAC 40 rose sharply at the beginning and end of the year, setting its all-time session record of 7,653.99 points in December. Among the companies involved, the manufacturer Stellantis (+59.34%), the building materials specialist Saint-Gobain (+46.02%) and the advertising giant Publicis (+41.37%) performed best.
Taking into account the dividend payment, the profit for an investor is even more than 20.14%.
On Friday, December 29, the CAC 40 rose by 0.11%, in a quiet market due to the absence of indicators and market participants.
The most important information: Inflation in Spain was 3.1% over a year in December, compared to the 3.3% expected by analysts.
The figure confirms the disinflationary trend seen throughout 2023. As a result, investors are now convinced that central banks have a clear path to cutting their key interest rates, after raising them sharply since 2022 and taking a break in the second part of 2023.
This belief caused states’ interest rates to fall sharply. France’s benchmark 10-year bond ended the year at around 2.56%, up sharply in two days but far from its peak two months ago of nearly 3.60%.
“We expect a lot from the central banks. They may try to show a little patience because once the interest rate cuts have started, there is a strong psychological effect,” says Aurélien Buffault, director of fixed income management at Delubac BIN.
The Paris Stock Exchange is closed for a three-day weekend and will not open until Tuesday, January 2nd.
The Paris Stock Exchange’s broad index, the SBF 120, is up 15.26% in 2023.
Stellantis rushes, Alstom loses control
The Stellantis automobile group, which was created in 2021 from the merger of Peugeot-Citroën (PSA) and Fiat-Chrysler (FCA), had a successful year. The fourteen-brand manufacturer posted a record net profit of 10.9 billion euros in the first half of the year (+37% over a year) and achieved a strong operating margin, boosted by the high prices of its vehicles. Its shares rose 59.34% for the year.
He was accompanied on the podium by the building materials specialist Saint-Gobain (+46.02%) and the advertising giant Publicis (+41.37%).
Twelve groups grew by more than 30% over the year.
In contrast, six companies included in the CAC 40 at the end of the year saw their shares decline.
Alstom, which suffered from commercial and financial difficulties, lost more than 46% of its market value during the year. Teleperformance had another difficult year, falling 40.70%. Kering fell 16.09%, a rare luxury stock that suffered significant disillusionment from investors.
Worldline, in the flagship index until mid-December, was eventually downgraded particularly due to its disastrous stock market performance in 2023 with a loss of almost 60% in one session. During the year, the stock fell 57.10%.
LVMH (+7.90% over the year) remains the company with the highest market value among Paris-listed companies, ahead of L’Oréal (+35.09%) and Hermès (+32.79%).
AFP/VNA/CVN
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