The FRA40 (CAC 40) index represents the French market's top 40 companies in various sectors. The key sectors of FRA40 include financial services, luxury and fashion, automobile and more.
In this article, we take a look at the top industries in FRA40.
What is the FRA40?
The FRA40, alternatively referred to as the CAC 40, serves as an indicator of the French stock market's performance. This index is composed of the 40 largest and most actively traded companies listed on the Euronext Paris, which is one of the leading stock exchanges in Europe.
Top industries in FRA40
Luxury and fashion
For many decades, France has remained as the fashion capital of the world and it continues to be one. In 2023, the luxury fashion sector demonstrated a revenue of approximately US $7 billion, with a CAGR of 3.43% until 2028.
The top French companies in the luxury and fashion sector according to market capitalization, include:
- LVMH (Louis Vuitton Moët Hennessy): It is a luxury conglomerate, owning brands like Louis Vuitton, Dior and more. Formed in 1987, it has the largest market capitalization, equaling $464.41 billion as of 2023.
- Hermès International: It is a renowned French luxury brand specializing in high-end products such as leather goods, silk scarves, ready-to-wear apparel, and luxury accessories. Its market cap is $228.88 billion as of 2023.
Energy and utilities
France holds one of the world's highest proportions of nuclear electricity and is a significant net electricity exporter. The nation is progressively emphasizing renewable energy, aiming for a 32% share by 2030 in its energy mix.
The top French companies in the energy and utilities sector according to market capitalization, include:
- TotalEnergies: Founded in 1924, TotalEnergies is a global energy company engaged in oil and gas exploration, production, and renewable energy solutions. As of 2023, its market cap is $143.44 billion.
- Schneider Electric: It specializes in energy management and automation solutions, providing technologies for sustainable and efficient energy use. Founded in 1836, it has a market cap of $102.02 billion as of 2023.
Aerospace and Defense
In 2020, the French aerospace and defense market garnered a cumulative revenue of $26.2 billion, with a 4% CAGR between 2016-2020. Currently, the aerospace and defense budget for France stands at $59 billion, with projections indicating an increase to $68 billion by 2027.
The top French companies in the aerospace and defense industry, according to market capitalization, include:
- Airbus: Established in 1970, Airbus is a prominent aerospace company manufacturing commercial aircraft and defense systems. It has a market cap of $114.38 billion, as of 2023.
- Thales: Thales Group, founded in 2000, specializes in aerospace, defense, security, and digital solutions. It has a market cap of $31.66 billion, as of 2023.
Financial services
The financial services sector contributed to over 13% of the labor French force. It also contributes to approximately one-third of the nation's total GDP.
The top French companies in the financial services industry, according to market capitalization, include:
- BNP Paribas: It is a major French bank offering a comprehensive range of financial services, including banking, investment, and insurance products. Established in 2000, its total market cap as of 2023 is $78.91 billion.
- AXA: It is a multinational insurance company providing a wide array of insurance and financial services to individuals and businesses globally. Founded in 1817, it has a market cap equaling $70.36 billion.
Automobile
The automotive industry has played a pivotal role in France's international trade relationships. In 2020, France engaged in the export of approximately €15.24 billion of passenger cars and an additional €7.73 billion in commercial vehicles, with a substantial portion being directed towards its European counterparts.
The top French companies in the automobile industry, according to market capitalization, include:
- Renault: Renault, founded in 1899, is a multinational automobile manufacturer based in France. It designs, manufactures, and sells a range of vehicles. Renault’s market cap is $11.60 billion, as of 2023.
- Stellantis: Established in 1976, it is a multinational automotive corporation with a portfolio of well-known brands like Citroën, Fiat, Jeep, and more. It has a market cap of $60.93 billion as of 2023.
Learn more about all FRA40 industries
The FRA40 index represents a dynamic cross-section of France's economy, and encompasses a wide spectrum of industries that drive France's economic landscape. These industries collectively contribute to France's position on the global stage and offer insights into its economic health and growth potential.
Though when taking a position on the FRA40, it's important to consider the risks involved with market volatility. Traders should develop a comprehensive understanding of the assets before trading.
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