Posted on Nov 23, 2020 at 6:59 p.m.Updated Nov 23, 2020, 7:08 PM
LVMH’s price surge of more than 20% since the beginning of the month has propelled its stock market valuation to new heights. The capitalization of the luxury group – the first of the Parisian quotation has, for the first time, exceeded 250 billion euros during the session on Monday.
This is a record, both for the French group and for the CAC 40. No company listed in Paris has ever weighed so heavily. By itself, LVMH (owner of Les Echos) is now valued as much as all of the 17 smallest capitalizations of the flagship index of the Place. It is also 45% more than L’Oréal, the second capitalization of the Paris Bourse, at 171 billion euros.
Heavyweights on the coast
Both stocks continued to thrive during the health crisis. LVMH is up nearly 19% since the start of the year and L’Oréal by 16%, while the CAC 40 is still down 8%. The pandemic has reshuffled the cards among the heavyweights of the rating. Sanofi, which was the first French capitalization until September, was first overtaken by LVMH and then by L’Oréal. The pharmaceutical group, whose price has lost 6% since the start of the year, is now in third place, with a capitalization of 106 billion euros.
Then come Total and Hermes, which have followed two opposing dynamics. The oil group, which posted a valuation comparable to LVMH until January 2019, was affected by the Covid-19 crisis. Its price is in the red by 27% over 2020 and its capitalization has fallen below 100 billion. Hermès, on the other hand, rose 25% on the stock market, which allowed it to join the top 5 of the largest “capi”.
The CAC 40 index is increasingly concentrated on a few stocks, in particular in the luxury sector. LVMH, alone, represents 14% of the flagship index of the Paris market. With L’Oréal, they represent nearly a quarter.