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First-time investors seeking to put their capital into European stocks may be confused by the exchange structures within the EU. The Euronext group of exchanges owns and operates the stock exchanges of several EU member countries, such as those located in France, Belgium, Ireland, Portugal, Italy, Norway, and the Netherlands. Each country is represented by a major index, as well as additional indexes, while the broader European market is represented by the Euronext 100 index.
Here are some quick facts about the Euronext Exchange:
"What really matters is not where companies are listed but where companies are traded, in which market, and in this respect, the relevant metric is the fact that Euronext has built a single liquidity pool, a single order book, a single technology platform with an aggregate market capitalization of approximately 6 trillion Euro which is twice the size of the London market and with about 12 to 13 billion Euro of average daily volumes which is twice the size of London" - Stéphane Boujnah
The Euronext consortium was initially founded in the year 2000, after the merger of the Paris Bourse, Amsterdam Stock Exchange, and Brussels Stock Exchange. The consortium later continued to expand and nowadays includes seven member exchanges.
Euronext works just like any other similar for-profit stock exchange around the world. The consortium is a publicly traded company (EPA:ENX) that owns majority stakes in the seven-member exchanges and generates revenues through trading, listing, and market service fees.
Here is the timeline of how the Euronext consortium expanded:
Through these exchanges, Euronext also owns some other securities exchanges as well. For instance, the Oslo Stock Exchange owns the Fish Pool and Nord Pool commodities exchanges.
The Euronext 100 is a market capitalization-weighted benchmark index of the Euronext Exchange and consists of 100 of the largest companies listed across the seven Euronext exchanges.
The Euronext 100 is a diverse index that includes companies from a broad range of industries, including consumer discretionary, industrials, energy, financials, etc.
The index is reviewed annually in March, with changes made to ensure that it continues to represent the most relevant and significant companies listed on the exchange. While the Euronext 100 is the benchmark for the exchange, each Euronext member also has a national stock index to distinguish between companies listed under the Euronext banner.
Here is how the members of Euronext 100 can be broken down in terms of the market sector:
Here are the top 10 largest constituents of the Euronext 100 index:
|LVMH Moet Hennessy Louis Vuitton SE||EPA:MC||Consumer Discretionary||9.33%|
|ASML Holding NV||AMS:ASML||Technology||5.54%|
|L’Oreal SA||EPA:OR||Consumer Discretionary||4.87%|
|Unilever PLC||AMS:UNA||Consumer Staples||3.36%|
|Sanofi SA||EPA:SAN||Health Care||3.10%|
|Anheuser-Busch Inbev SA||EBR:ABI||Consumer Staples||2.66%|
Euronext Paris is the primary stock exchange of France and the largest exchange within the Euronext consortium. Euronext Paris is home to 795 public companies.
The CAC 40 is a market capitalization-weighted index that consists of 40 of the most significant stocks listed on the Euronext Paris exchange. The index has a total combined market capitalization of over EUR 2.3 trillion. Components of the index are denominated in EUR and include the likes of LVMH, Airbus, L’Oreal, Michelin, etc. The index was first published in 1969.
Here are the 10 largest components of the CAC 40 and their market weight within the index:
|LVMH Moet Hennessy Louis Vuitton SE||EPA:MC||12.51%||Consumer Cyclical|
|Sanofi SA||EPA:SAN||6.38%||Health Care|
|Schneider Electric SA||EPA:SU||5.23%||Industrials|
|BNP Paribas SA||EPA:BNP||4.30%||Financial Services|
|Hermes International SCA||EPA:RMS||3.36%||Consumer Cyclical|
|AXA SA||EPA:CS||3.33%||Financial Services|
|EssilorLuxottica SA||EPA:EL||3.25%||Health Care|
Euronext Brussels is the only stock exchange in Belgium. The exchange is home to a total of 181 companies. Anheuser-Busch is the largest company listed on Euronext Brussels.
BEL 20 is the benchmark index of the Belgian stock market and consists of 20 of the largest companies listed on Euronext Brussels. The index is market capitalization-weighted and includes notable European companies, such as Anheuser-Busch, KBC Group, etc.
The initial value of the index was 1,000 at its launch in 1990.
|Anheuser-Busch Inbev SA||EBR:ABI||13.39%||Consumer Staples|
|KBC Groep NV||EBR:KBC||13.30%||Financials|
|Argenx SE||EBR:ARGX||10.40%||Health Care|
|UCB SA||EBR:UCB||8.54%||Health Care|
|Groep Brussel Lambert NV||EBR:GBLB||6.96%||Financials|
|Umicore SA||EBR:UMI||6.60%||Basic Materials|
|Solvay SA||EBR:SOLB||5.97%||Basic Materials|
|Elia Group SA||EBR:ELI||4.47%||Utilities|
|D'Ieteren Group NV||EBR:DIE||3.64%||Consumer Discretionary|
Similarly to Euronext Paris, obtaining a listing on Euronext Brussels also requires at least three years of financial statements, a regulator-approved prospectus, and a minimum public threshold of 25% (unless otherwise stated by the Euronext Exchange).
The financial statements, as well as the prospectus, must comply with IFRS or GAAP reporting standards.
Each prospective company must also comply with the corporate governance rules set out by the Belgian Company and Associations Code and the Belgian Code on Corporate Governance for listed corporations.
Euronext Amsterdam is the primary stock exchange in the Netherlands and home to 140 listed companies from sectors, such as technology, financials, industrials, and consumer staples.
The exchange includes some major multinational corporations, such as Unilever, Shell, ING, etc. AEX is the benchmark index of Euronext Amsterdam and tracks the 25 largest companies listed on the exchange.
|Unilever PLC||AMS:UNA||16.05%||Consumer Staples|
|ASML Holding NV||AMS:ASML||15.04%||Technology|
|Relx PLC||AMS:REN||6.76%||Consumer Discretionary|
|ING Groep NV||AMS:INGA||5.87%||Financials|
|Ahold Del NV||AMS:AD||3.70%||Consumer Staples|
|Wolters Kluwer NV||AMS:WKL||3.39%||Consumer Discretionary|
|Heineken NV||AMS:HEIA||2.67%||Consumer Staples|
The general listing requirements on Euronext Amsterdam are the same as on Euronext Brussels and Paris:
Euronext Dublin is the primary securities exchange in the Republic of Ireland and is home to 560 public companies. The benchmark index of the exchange is ISEQ 20, which tracks the 20 largest companies listed on the exchange.
The index was first published on 31 December 2004 and had an initial value of 1,000 basis points.
|Flutter Entertainment PLC||FLTR.IR||18.78%||Consumer Discretionary|
|Ryanair Holdings PLC||RYA.IR||12.86%||Consumer Discretionary|
|Kerry Group PLC||KRZ.IR||12.46%||Consumer Staples|
|Bank of Ireland GP||BIRG.IR||8.85%||Financials|
|Smurfit Kappa Group PLC||SK3.IR||8.32%||Industrials|
|Kingspan Group PLC||KRX.IR||7.25%||Industrials|
|AIB Group PLC||A5G.IR||4.04%||Financials|
|Glanbia PLC||GL9.IR||2.19%||Consumer Staples|
|Greencoat Renewables PLC||GRP.IR||1.20%||Utilities|
To obtain a listing on the Dublin Stock Exchange, a company:
It must be noted that there are no minimum listing price requirements on Euronext Dublin.
Euronext Lisbon is the solitary stock exchange in Portugal and home to 56 public companies. The PSI-20 is the benchmark index of Euronext Lisbon and tracks the top 20 companies listed on the exchange by market capitalization.
|Galp Energia SGPS SA||ELI:GALP||14.13%||Energy|
|EDP Energias de Portugal SA||ELI:EDP||12.88%||Utilities|
|Jeronimo Martins SGPS SA||ELI:JMT||12.15%||Consumer Staples|
|EDP Renovaveis SA||ELI:EDPR||11.05%||Utilities|
|Banco Comercial Portugues SA||ELI:BCP||9.24%||Financials|
|REN Redes Energéticas Nacionais SGPS SA||ELI:RENE||7.73%||Utilities|
|Sonae SGPS SA||ELI:SON||7.03%||Consumer Staples|
|Navigator Company SA||ELI:NVG||6.16%||Basic Materials|
|Nos SGPS SA||ELI:NOS||5.70%||Telecommunications|
|Greenvolt Energias Renovaveis SA||ELI:GVOLT||3.17%||Utilities|
To obtain a listing on Euronext Lisbon, certain rules must be met. For instance:
There are no specific working capital requirements on Euronext Lisbon.
Borsa Italiana is the largest stock exchange in Italy and is host to 353 listed companies. The exchange was officially privatized and incorporated in 1998 and became a part of the London Stock Exchange Group in 2007. The exchange was acquired by Euronext in 2021 and has since become one of the largest exchanges in the group.
The FTSE MIB is the benchmark index of Borsa Italiana and consists of the 40 most-traded companies listed on the exchange.
|Intesa Sanpaolo SpA||ISP.MI||9.87%||Financials|
|Assicurazioni Generali SpA||G.MI||6.03%||Financials|
|CNH Industrial NV||CNHI.MI||3.64%||Industrials|
|Moncler SpA||MONC.MI||2.80%||Consumer Cyclicals|
To obtain a listing on the Borsa Italiana, companies need to meet a certain list of requirements:
The Oslo Stock Exchange is the primary securities exchange of Norway that was officially established in 1818 and is home to 346 listed companies.
The OBX 25 is the benchmark index of the exchange and tracks the 25 largest listed components.
|DNB Bank ASA||DNB.OL||13.70%||Financials|
|Norsk Hydro ASA||NHY.OL||7.47%||Basic Materials|
|Aker BP ASA||AKRBP.OL||7.28%||Energy|
|Mowi ASA||MOWI.OL||5.57%||Consumer Staples|
|Yara International ASA||YAR.OL||5.40%||Basic Materials|
|Orkla ASA||ORK.OL||4.04%||Consumer Staples|
|Tomra Systems ASA||TOM.OL||2.97%||Industrials|
Euronext is a consortium that owns and operates securities exchanges in seven EU member states - France, Belgium, the Netherlands, Portugal, Norway, the Republic of Ireland, and Italy.
LVMH is the largest stock listed on Euronext and constitutes over 9% of the weight of the Euronext 100 index. The market capitalization of LVMH is over EUR 400 billion.
Not always. While six members of the Euronext consortium list their shares in EUR, the Oslo Stock Exchange lists its components in NOK and is the only Euronext exchange to do so.