The fall of the pound since September, the difficulties of the companies listed in London and the good state of the great French champions, especially
especially luxury values, contributed to reversing the trend.
In 2016, that same Bloomberg indicator gave a clear advantage to the British market, but the appreciations of Kering, Hermès, L’Oréal and LVMH, the largest European capitalization, experienced a great advance thanks to the recovery after the covid.
Beyond the difficulties of the British economy, especially after “Brexit”, adds “the constitution of an alternative” financial in continental Europe, says Stéphane Boujnah, PDG d’Euronext, the pan-European operator that manages the Paris Stock Exchange.
rivals
Faced with the integrated market represented by the seven Euronext locations, including Milan, Amsterdam and Dublin, “London is no longer the natural listing location for growing companies” in Europe, he said.
Consulted, LSE, the London operator, did not want to comment on the matter.
The advantage of the French market did not last long: London regained first place, although both values were almost equal: as of November 22, the aggregate market capitalization of companies in Paris was worth 2.822 billion dollars, compared to 2.855 billion dollars the other side of the English Channel, according to the Bloomberg Index.
“The number must not be exaggerated” and its scope, clarifies Eric Dor, director of Economic Studies at the IESEG business school.
Of the various financial products, such as the foreign exchange market, precious metals or their derivatives, London retains its global aura, he said.
And even when it comes to just the shares, “since certificates of deposit are introduced,” which make it easier for a foreign company to list in another financial market, the result is different from the Bloomberg index, he stresses.
According to figures from the financial data specialist, Refinitiv, which belongs to the LSE, the total market capitalization of the British market in mid-November reached 6.2 trillion dollars compared to 3.7 trillion for the Paris stock exchange.
“What marks London’s superiority is that it is a global financial center that attracts foreign stock listings,” Dor says.
And now?
Among the advantages of the Parisian square, there is “leadership in green finance”, a very dynamic branch “with instances, recurring events to fuel reflection”, emphasizes Catherine Karyotis, finance professor at Neoma Business School.
According to the latest ranking of the Global Financial Centers Index, one of the references in market halls that is based both on questionnaires sent to investors and economic data from large global institutions, in September 2022, London was the second
financial center in the world, far behind New York and a good distance from Hong Kong, third. Paris, second European place, was classified in tenth place.
Dor underlines, however, a “progressive decline” of the market shares of the London square at many points.
In that same ranking in September 2016, two months after the Brexit vote, London narrowly edged New York, when Paris was only 29th after the Cayman Islands.
AFP Agency
Source: Ambito
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