THE VCOMV CAC 40 SURVEY:

DECISIVE CONCLUSIONS

AN UPSURGE IN TECH STOCKS

The CAC 40 focus has shifted towards technology stocks.
In the past four years, six tech stocks have joined the CAC 40: ATOS and STMICROELECTRONICS in 2017, DASSAULT SYSTEMES in 2018, THALES in 2019 (with an enhanced market profile after the GEMALTO acquisition), TELEPERFORMANCES and WORLDLINE in 2020.

Tech stocks have the wind in their sails. In 2020, three tech stocks ranked among the year’s five highest share increases: in third place (STMICROELECTRONICS: +26.30%), in fourth place (WORLDLINE: +25.30%) and in fifth place (TELEPERFORMANCE: +24.80%).

A “KHOL” DOMINATED INDEX

Tech stocks, however, do not carry as much weight as the dominant luxury stocks, in CAC 40.  On 1 April 2021, the “KHOL” stocks (KERING-HERMES-L’OREAL-LVMH) have a combined market capitalisation of 645.81 billion euros: 32.45% of the index as opposed to 8.44% for tech stocks, nearly four times more.

Possible shift

A listing in the CAC 40 is based on two criteria: market capitalisation and the level of freely traded equity i.e. the number of shares available for trading.

By combining these two criteria (market capitalisation and freely traded equity), two stocks are clearly eligible to be listed on the French index:

6th April 21

Market capitalisation
(billion euros)

Free equity (%)

EUROFINS SCIENTIFIC

16.05

66.40

EDENRED

11.10

99.60

 

In second place, a large selection of adjusted market capitalisation freely traded shares is close to or higher than 7 billion euros: BUREAU VERITAS, GECINA, SARTORIUS STEDIM BIOTECH, SOLVAY, UBISOFT and VALEO.

On the evening of 10 June 2021, the CSI will announce whether or not it will modify the composition of the CAC 40.

 

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