PARIS (Reuters) – French luxury goods company Hermes won promotion on Wednesday to the blue-chip Euro STOXX 50 equity index, which could increase investment funds’ demand for the stock, which has hit all-time highs.
The index provider said Hermes would formally enter the Euro STOXX 50 on December 20. Hermes’ promotion could fuel further demand for its shares, since funds that automatically track the index can then add the stock to their portfolio.
Shares in Hermes, which posted stronger-than-forecast third quarter sales in October, have risen by nearly 90% so far in 2021 and have hit record highs.
(Reporting by Sudip Kar-Gupta)
