The record level reached in mid-May by the CAC 40 is only a distant memory. While it had exceeded the threshold of 8,200 points almost a month and a half ago, the flagship index of the Paris Stock Exchange returned towards 7,600 points, thus wiping out almost all of its gains accumulated since the beginning of January.
The upcoming holding of early legislative elections on June 30 and July 7, led by the announcement of a dissolution of the National Assembly, largely explains the turnaround of the Parisian market, which is underperforming compared to other markets. in Europe.
The uncertainties surrounding the result of these elections, with in particular an unknown factor regarding the possible future parliamentary majority and the economic programs deemed not very credible by the two extreme alliances at the gates of power, are fueling the ambient gloom among investors.
The financial markets are always in anticipation, brutal stock market arbitrages have already taken place within several sectors, potentially impacted in the event of a victory by one of the competing camps. With significant disengagements, the declines are between 10 and 27% over a month.
Thus, the bank compartment (BNP Paribas, Agricultural credit, Societe Generale) suffered heavy losses amid fears over French public debt and rising state borrowing rates.
Sectors dependent on the regulatory context have also suffered the wrath of investors, like the BTP (Eiffage, Vinci) under the threat of nationalization of motorway concessions, real estate, energy (Engie), of the telecoms (Orange, Bouygues) and media. Officialized by the RN, the privatization project of France Televisions has, for its part, led to sharp stock market falls for private television channels TF1 et M6.
Titles float
However, all is not gloomy in this environment which has suddenly become less favorable. Many French companies have managed to do well on the stock market in recent weeks. A third of the members of the SBF 120 have thus managed to limit their decline to a maximum of 5% over the last four weeks.
Over the period, the variation in their price is ultimately between +1% and -5%. The resilience of these stocks is therefore notable, a sign of their potential considered intact or almost intact by investors.
A shock selection
By sifting through the SBF 120 index, the writing of the Income has selected ten stocks that stand out and can still be placed in the portfolio. These are most often very internationalized groups, which carry out a limited part of their activity in France.
In this category, we can cite the champion of industrial gases Liquid airthe world leader in optics Essilorluxotica and the communications giant Publicis Group. And, in the current context of rising interest rates, the solidity of the balance sheets of these multinationals, with debt most often limited, becomes even more of an advantage of choice.
Combined with excellent global positions, the quality and diversification of their economic model are another major criterion in the face of a national political shock capable of transforming into an economic shock.
From this point of view, the defensive character ofLiquid air and the pharmaceutical laboratory Sanofi are no longer to be demonstrated. Last but not leastcertain companies are well placed to benefit from structurally promising trends in the medium term.
This is the case of the cable ship Nexans and the energy management giant Schneider Electric with the electrification of the world,Imerys for metals linked to the energy transition, Bureau Veritas for safety and certification needs – reinforced by the strengthening of regulations around the world – andID Logisticsideally placed to benefit from the logistics outsourcing movement.
In the shorter term, the stock market operator Euronext is able to benefit from the increased volatility of financial markets.
