Stock Market — Euronext — Innovation

Why the new Euronext Tech Leaders could become the European NASDAQ

Photo by Kristopher Roller on Unsplash

Euronext recently announced the “Euronext Tech Leaders” index, a technological showcase from the Old Continent. Could it become something like a European NASDAQ? What exactly do we find there? Here are some details before launch.

An objective, to increase the visibility of listed European technology companies at international level

Euronext is the main stock exchange in the eurozone, encompassing no less than 6,400 billion euros in market capitalization. If you invest in stocks, ETFs or other derivatives on the Paris, Amsterdam, Brussels, Lisbon, Oslo, Dublin or Milan stock exchanges, it is through Euronext! It is therefore a major financial player on the European scene. Euronext N.V. (ticker: EPA:ENX) operates these markets.

We do not compete with Nasdaq. What we are trying to develop here is a fundamentally different approach.
Stephane Boujnah, Euronext’s chief executive

This is why the Euronext Tech Leaders index will be launched in July 2022. Practically, it will allow the underlying companies to benefit from consulting, networking and communication services to increase their international visibility. The initiative is supported by a dozen partner actors, including global investment banks such as BNP Paribas, Goldman Sachs or HSBC.

To be fair, Euronext’s technological ecosystem is already rich. More than 700 Tech companies are listed on its markets. Better: of the 212 Euronext IPOs in 2021, more than 50% came from the Tech sector, such as that of the French giant OVHcloud.

Euronext Tech Leaders index composition

No less than 108 companies will be included, for a total market capitalization of 1 trillion euros.

Euronext Tech Leaders main characteristics

Companies within the Euronext Tech Leaders index all have a minimum market capitalization of €300 million and a minimum growth rate. However, those whose market capitalization is greater than 1 billion euros will not have to show any performance criteria.

Here are the stocks included:

There are well-known names, such as ASML or Atos, with other more or less confidential companies, such as Hyloris Pharmaceuticals or Believe. From “pure” technological players, such as Philips or Soitec, to innovative pharmaceutical companies, such as Mithra Pharmaceutical or Nyxoah.

Geographical breakdown of the Euronext Tech Leaders Index
Geographical breakdown of the Euronext Tech Leaders Index
Sectors breakdown of the Euronext Tech Leaders Index
Sectors breakdown of the Euronext Tech Leaders Index

A beautiful melting pot, predominantly French and technological that clarifies something: “Tech Leaders” means technology broadly speaking, including health, industry, etc. A more appropriate name would have been “Innovation Leaders”, in my personal opinion. Anyway, we find the essence of the NASDAQ, and that was the goal.

The full list with details can be found at this address.

ETFs to come

Anyway, I am delighted to find some companies in which I am a shareholder (ASML, Mithra Pharmaceuticals, Soitec). And as with any index, it’s a safe bet that ETFs will show up in the coming months, via passive management players on the market (such as iShares, Amundi, Lyxor, etc.).

I’m Raphaël, founder and editor-in-chief of Investiforum.fr, a financial website for French-speaking private investors. Thanks for reading! Don’t hesitate to follow me on Medium, Twitter or Polywork.

This article is for educational and entertainment purposes only and shouldn’t be considered as financial or legal advice. Not all information will be accurate, but all the data is sourced. Consult a professional before making any significant financial decisions. This article shouldn’t be seen as an incentive to buy or sell any of the securities mentioned therein. I have a beneficial long position in the shares of AMS:ASML, EBR:MITRA & EPA:SOI through stock ownership. I have no plans to buy/sell any security mentioned in the article in the three following days.

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