The Cac 40 is the reference stock index of the French stock market made up of the 40 largest and most capitalized companies in France.
The trading sessions for this index take place from Monday to Friday with an opening auction from 08:30 to 09:00 and another from 09:00 to 17:30, ending in a random closing of 30 seconds.
The greatest peculiarity of the companies that make up the index in question is that they are more internationalized than those of the rest of the European markets. Approximately 45% of its shares are in foreign hands, German investors are the majority with 21%, the Japanese, Americans and British also own a significant part.
Among some of them, we can highlight Carrefour, Renault, EADS, Bnp Paribas, L’oréal, etc. It includes all types of sectors such as electricity, banking, oil, gas, real estate, pharmaceutical, etc.
This index was created on December 31, 1987 with a trading value of 1,000 points. This year of creation is known as the base year.
The index value is calculated as the sum of the quotes multiplied by their corresponding weights and divided by the adjustment coefficient multiplied by the base capitalization.
Cac 40 Features
In addition to this, the main characteristics of the Cac 40 are the following:
- It is made up exclusively of securities issued by companies that have been admitted to trading on the Euronext Paris markets.
- The index includes stocks that are considered to represent the French equity market, have a significant presence in terms of group size and have a significant number of French employees.
- The weight of a company in the index may not exceed 15% of the floating capital of the index, since it is the maximum limit of the latter.
- The adjustment of the number of titles is made quarterly, and is based on the number of titles admitted in the listing.
Tags: derivatives passes banking