Euronext Exchange Loses €78bn In 2022

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The Euronext Stock Exchange lost €780 billion by October 2022, bringing its total market cap to €4.87 trillion from €5.65 trillion it recorded in 2021, data from Finbold have shown.

The dip represents 13.8 per cent from the €5.65 trillion which was the highest valuation since 2014. Notably, last year’s valuation was a 28.12 per cent increase from 2020’s figure of €4.41 trillion.

Globally, stock markets are undergoing a phase of high volatility triggered by dwindling economic fortunes. The Euronext Stock Exchange has also had its share of market uncertainties, forcing from it, a significant outflow.

In 2019, the exchange had a valuation of €4.45 trillion, or a growth of 33.63 per cent from 2019’s figure of €3.33 trillion, representing a slump of 11.44 per cent from 2017’s value. Overall, between 2014 and 2017, the valuation rose steadily before dropping in 2018.

Elsewhere, LVMH Moët Hennessy Louis Vuitton remains the highest-valued company on Euronext, with a market cap of €321.58 billion as of October 2022.

Merck and Co rank second at €237.24 billion, followed by oil giant Shell at €200.64 billion. ASML Holding ranks fourth with a market cap of €194.29 billion, while Caterpillar occupies the fifth spot at €176.02 billion.

Other high-valued companies on the platform include L’Oréal (€170.73 billion), TotalEnergies (€144.31 billion), Hermes Intl (€138.35 billion), Unilever (€121.51 billion), and Equinor (€117.23 billion).

Finbold data highlighted some of the drivers for the significant capital outflow from Euronext. According to the research report

“The capital outflow from Euronext can be attributed to the prevailing economic uncertainty characterized by extended geopolitical tensions and stock market volatility alongside skyrocketing inflation and the threat of interest rate hikes. In this line, the factors have led to a fear of recession, with investors staying on the sidelines waiting for possible changes.”

For Euronext to regain increased activity, the exchange will heavily rely on how European economies recover from the current downturn.

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