Peugeot Removed from CAC 40 Due to Share Decline
Stocks of PSA Peugeot-Citroen have decreased by 60% in the last 12 months. Currently, the stock is trading at €6.37 per stock on the Paris Exchange, about a third of the highest value in the last year - 18.81. What’s more, PSA has fallen about ten times from the high of €60 in January 2008.
As a result of this, the value of the company has fallen to €2.18 billion in market capitalization. NYSE Euronext who runs the Paris exchange has decided to pull PSA Peugeot Citroen from the CAC-40 index as of September 24th.
The CAC 40 is an index of the biggest and most prominent companies listed by the NYSE Euronext bourse in Paris. Capitalization was most likely a deciding cause, but volume and a company’s perspectives were most likely taken into consideration.
The company that will replace PSA Peugeot Citroen is called Solvay and is a Belgium chemical company.
Peugeot has really managed to lose value for its stock holders. By comparison, Renault, who is Frances second largest automaker, is worth about €10 billion.
As PSA reported a €819 million loss for the first half of 2012, the French company’s CEO said they were burning through €200 million a month. With 100,000 people working directly for them in France, job cuts are surely in the cards.