published on 02/26/2020 at 12:00 p.m.
Photo credit © Reuters
(Boursier.com) – THE TREND
Still no rebound on the stock markets. The Paris stock market remains down and was very scared this morning with a CAC40 down to 5,526 points (-2.7%). Towards midday, the fall is limited to 1.5% around 5.590 points, which is still equivalent for the moment to 7.5% decline in three days.
Wall Street, which has accelerated its correction since Monday (-3.56% Monday and -3.15% yesterday on the DJIA), still fails to recover before market on Wednesday. The initial pre-session trend remains largely negative in the face of the worrying news of the coronavirus. The American Center for Disease Control and Prevention (CDC) has recommended that Americans begin to prepare for a spread of the coronavirus. In mainland China, the coronavirus has infected 78,064 people and caused 2,715 deaths since the start of the epidemic last December, Chinese health officials said on Wednesday.
In France, a second death has been deplored and the Banque de France will probably revise its growth forecast for 2020 downward, its governor François Villeroy de Galhau said on Tuesday. This forecast is currently 1.1%. Oil continues to fall with a barrel of Brent to 53.4 dollars (-1.5%) which has just lost about 10% in one week.
RISING VALUES
* Biggest rise in CAC40, PSA Group gained 2.3% to 18.1 euros after a record profitability confirmed for 2019. The group’s current operating profit amounted to 6,324 ME, up 11.2% with a current operating profit of the Automotive division which increased by 12.8% at 5.037 ME. This strong level of profitability of 8.5% was achieved thanks to a favorable product mix and the continued decline in costs, despite the negative impact of exchange rates and increases in raw material costs. The net profit is 3.201 ME, up 374 ME compared to 2018. The payment of a dividend of 1.23 euro per share will be submitted to the vote of the next General Meeting. The dividend ex-dividend date would take place on May 21, 2020 and the payment date on May 25, 2020. PSA Groupe forecasts this year a car market down 3% in Europe, 2% in Russia and stable in Latin America.
* Danone rose 1% to 68.3 euros after further growth in its 2019 results. The proposed dividend is 2.10 euros per share, up + 8% compared to last year (1.94 euros). For 2020, the group has posted a new target for current EPS growth of around 5%, reflecting sales growth of between + 2% and + 4% and a current operating margin of more than 15%, incorporating the accelerated investment plan and taking into account the estimate to date of the impact of Coronavirus on activity.
* Solocal (+ 2.5% to 0.405 euro) will publish its 2019 results tomorrow.
FALLING VALUES
* Biomerieux lost 7% to 87 euros. The group hopes to maintain this year a growth dynamic higher than that of the in vitro diagnostic market and thus sets itself the objective of achieving organic sales growth of between 5 and 7%, at constant exchange rates and perimeter. These objectives take into account a more intense influenza epidemic in 2020 than in 2019 and uncertainties, as assessed at the date of publication, linked to the Covid-19 coronavirus epidemic and in particular its possible consequences for the economy Chinese in the first semester. As a reminder, China represents around 10% of total consolidated sales of bioMérieux and is not a production area for export.
* Nexity yielded 2.5% to 43.3 euros after its 2019 accounts. A dividend of 2.7 euros will be proposed and Nexity expects this year on turnover, EBITDA and operating income in growth above 10%. In Commercial real estate, the group recorded more than 500 million euros in orders, before a probably record year 2020, thanks to the marketing of the Engie campus in La Garenne-Colombes. In Residential real estate, Nexity anticipates a rebounding market from the second half, and expects to continue to increase its market share. At the end of 2019, net bookings of new housing in France amounted to 21,837 lots and 4.362 billion euros including tax, an increase of 11% in volume and value compared to 2018.
* Bank stocks are undergoing new releases: around -2% for BNP Paribas, Societe Generale and Agricultural credit.
* TechnipFMC (-1.3%) announced the payment of a quarterly cash dividend of $ 0.13 per common share, which will be paid on April 8 or soon after that date to shareholders registered on March 24 after closing of the New York Stock Exchange. The date of coupon detachment is set for March 23, 2020.
* Impacted head-on by the slowdown in tourist flows, AccorHotels remains down 2.5% to 34.3 euros and drops almost 12% in 4 days.
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