Before the bell: thank you for the rich harvest on the markets

Second consecutive year with gains over 20%. France struggles beyond the bond markets.

While Americans celebrated Thanksgiving, which we might call a harvest festival, U.S. investors have much to thank the market gods for. The major U.S. indices are on track to post gains of over 20% for the second consecutive year. Without Wall Street, European markets had a calm day yesterday, but with a 0.5% daily gain, it was certainly not a bad one. Airbus (+4%) and Siemens Energy (+3.6%) were among the standouts. Cognac maker Rémy Cointreau (+3%) rebounded after reporting a 16% drop in revenue the day before, though its stock is still down 47% this year. French markets continue to face pressure. Not only are French bonds under strain, but the CAC 40 has fallen 4.8% this year, lagging behind solid gains elsewhere in Europe. Star stocks like LVMH and L’Oréal have dropped 20% and 27%, respectively, as demand for luxury goods and expensive cosmetics in China and the U.S. has weakened sharply. Meanwhile, the Bel20 has performed well, rising 13.7% this year, especially when factoring in its generous dividends. Yesterday, there were few notable movements in Brussels, though Proximus fell another 3.8% to a new low, having already dropped out of the Bel20 index earlier.

This morning, Elia raised its forecasts for the year, and later today, eurozone inflation figures will be released. The U.S. Federal Trade Commission is reportedly investigating Microsoft’s competitive practices. It will be interesting to see how the stock reacts when trading resumes.

A dividend to count on

In Brussels, one stock grabbed attention after the market closed with the release of its full-year results for 2023/2024. Ascencio, a real estate investment trust (REIT), specializes in leasing retail spaces on the outskirts of cities to supermarkets. The company operates primarily in French-speaking Belgium, northern France, and Spain. Ascencio performed well even during the pandemic, as supermarkets and food retailers are reliable tenants with defensive business models. Rental income increased by 3.9% to 53.4 million euros, while net profit remained stable. Unlike many other real estate groups, Ascencio did not need to raise capital, allowing earnings per share to increase slightly to 5.49 euros. The company announced a dividend of 4.3 euros (+3.6%), translating to an impressive gross yield of 9.3% or 6.5% net.

Trash is valuable

Dutch waste processor Renewi, listed in Amsterdam and London, surged 42.4% on (currently unconfirmed) reports that Australian investment manager Macquarie is preparing a takeover bid. Last fall, Renewi rejected an 800-pence-per-share offer from the same group as “too low.” Renewi closed yesterday at 818 pence and 9.54 euros (+42.4%) in Amsterdam. Renewi primarily operates in Belgium and the Netherlands, focusing on industrial waste processing. Formerly Van Gansewinkel, the company merged with Britain’s Shanks but sold off its structurally unprofitable UK operations this May, refocusing entirely on Belgium and Luxembourg.

Did you know…

The Commercial Court in Turnhout will rule on January 9 on a minority shareholder group’s request to appoint a temporary administrator at Nyrstar? Parliamentary hearings in Belgium will also examine how minority shareholder interests can be better protected.

This article was translated from Dutch and was originally published on Spaarvarkens.be.