(News Bulletin 247) – As the third quarter has just ended, News Bulletin 247 takes stock of the securities which are currently experiencing the biggest rises and falls since January 1 within the flagship index of the Stock Exchange from Paris.

The third quarter hurt the CAC 40 very badly. Between July 1 and September 29, the Parisian index lost 3.58%, weighed down by fears about the Chinese economy, the rise in oil prices and the firmness of major central banks which warned that high rates were here to stay.

So much so that the CAC 40 now only shows an increase of 10.22% over the whole of 2023. In this context, which values ​​show the strongest progression and, on the contrary, the most pronounced decline?

We have finalized the ranking in the infographic below. Our most assiduous readers may have in mind that we usually take the SBF 120. Rest assured, we will provide an update on the broader Paris Stock Exchange index at the end of the year (or even before).

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Luxury, largely absent from the top 5

A first observation is striking in this ranking which retains the five largest declines and the five largest increases. No luxury value appears in the top 5, although the sector had clearly lifted the CAC 40 at the start of the year. Hermès is only in ninth place (+19.7%) while L’Oréal is 12th (+17.9%). A conclusion not so illogical insofar as the sector has been experiencing a downturn since the beginning of the summer, the pan-European luxury index Stoxx Europe Luxury 10 having lost 15% since July 14. The normalization of demand in the United States and worrying indicators in China have hit this sector hard.

Beyond this observation, Stellantis (+37.17%) constitutes a magnificent first. The group born from the merger between Fiat Chrysler and Peugeot SA also generated the largest profit in the CAC 40 in the first half, with 10.9 billion euros.

Volumes have returned and the group is managing to tighten its costs while maximizing revenues from the sales of its vehicles, which perfectly illustrates the “Tavares method”, in reference to its general director, Carlos Tavares. Even if the manufacturer’s impressive margins are expected to fall in the second half, after the rate of 14.3% in the first, they would remain above 10%, with the consensus anticipating 11.1%, according to HSBC. It remains to be seen whether the current strike in the automobile sector in the United States, its most important region, will not end up weighing on the stock.

Saint-Gobain, or consistency rewarded

The podium is completed by Safran (+27.13%) and Saint-Gobain (+24.6%). The aeronautical engine and equipment manufacturer took advantage of the resumption of air traffic, synonymous with more visits to its workshops for repair services, overhaul, maintenance and spare parts sales, which constitute the engine of its profitability. The group has also launched a 1.1 billion euro share buyback program which is due to end at the end of 2025. “Certainly, there are many things to like about Safran”, admits Stifel, yet to “keep ” on the action due to a valuation that is a bit high for his taste.

Saint-Gobain sees its consistency being rewarded. Since the 2022 annual results, each of the publications of the oldest company in the CAC 40 (its origins date back to Colbert in the 17th century) has been very well received by the market, regardless of market conditions, with a record margin in the first half. The group’s transformation, which has carried out significant asset rotations in recent years to move towards growing segments, such as construction chemicals, is bearing fruit.

Let’s have a word for Renault (+24.3%), fourth. The habit of reading negative headlines in recent years about the diamond manufacturer and the perhaps somewhat hasty designation of the group as the big loser from Tesla’s price cuts and the Chinese offensive in Europe have eclipsed an essential point : its strategic plan is working and not just a little. Renault reminded us of this very well by delivering half-year results above expectations while raising its annual outlook. The company owes much of this good performance to itself, with successful launches of several models, such as the Austral. There remain concerns surrounding the future IPO of its electrical division, Ampere.

Teleperformance in the tough

On the side of the biggest declines Teleperformance (-46.39%) unsurprisingly shows the most marked plunge in the CAC 40. The cocktail is unfortunately quite strong for the market: several quarters of disappointing growth, a lowered annual revenue target, a acquisition (Luxembourg’s Majorel) poorly received by the market and with a dilutive component for shareholders. Added to this for several months have been investors’ fears about the impact of generative artificial intelligence, the one at the heart of ChatGPT, on the company’s business model. Teleperformance, for its part, explains that on the contrary, generative AI constitutes an asset for it. The problem is that market perceptions are difficult to change.

The fall of Worldline (-27.05%) is more surprising given the good results of the payments specialist. But the rise in interest rates may have penalized this technological value and, moreover, the group remains linked to consumption (and therefore to transactions) which is suffering from a lackluster economic situation in Europe, particularly in Germany, one of the countries most important in society.

Eurofins (-20.22%) for its part is in third place. The laboratory analysis specialist is still trying to negotiate the delicate post-Covid shift, which results in losses of income, certainly exceptional, linked to tests during the pandemic. The 2022 results were disappointing, as were the prospects for 2023. In addition, in the first half of the year the company was penalized by inflation and was forced to adjust its turnover and surplus targets downwards. adjusted gross operating income for the current year.

Pernod Ricard (-14.1%) failed at the foot of the “podium” while its growth disappointed in the “America” zone in the fourth quarter (which corresponds to the second calendar quarter of 2023). Kering (-9.17%), which is suffering from the creative transition at Gucci and the normalization of demand for luxury, has for its part suffered the fifth largest drop in the CAC 40 since the start of the year.