Is the CAC 40 becoming the luxury index? The crisis gave a boost to the transformation of the Paris index. In one year, the historic heavyweights of the rating have seen their capitalization shrink, from Total to the big banks, while the already dominant luxury sector has become even more dominant.
It must be said that the four French luxury giants – often grouped under the acronym KHOL for Kering, Hermès, L’Oréal and LVMH – have experienced another prosperous year on the stock market, barely slowed down in their momentum by the pandemic. Their capitalization increased by nearly 20% in 2020, from 500 billion to nearly 600, when that of the CAC as a whole fell by 2.2% (a decrease of 42 billion euros to 1.793 billion). Their capitalization represents more than a third of that of the Parisian index, a record. The weighting in the index, which takes into account the proportion of free float, is however less important, at 23%.