Shares watch: Michelin steadies the ship

London – Michelin’s share price steadied on the Paris stock exchange during November following a sharp decline after a prior-month downgrade to the group's full-year forecasts.

Shares in the French tire maker had been trading close to €99.00 until its 18 Oct announcement lowering financial expectations for 2018.

This was due to a recent slowdown in certain passenger-car and truck & bus tire markets, including in China.

Shareholder reaction knocked about 8% off the value of the tire & rubber products group's shares, which started November down at €90.58.

The slide, though, seemed to have ended at that stage, prices staying at or slightly above that level throughout November.

The market seems to have heeded Michelin reports of “sustained market-share gains” in the larger passenger car and light truck tires (PC/LT) segment and in mining and construction markets.

Michelin also issued a preliminary 2019 market scenario in which it envisaged 1.5% growth year-on-year in the PC/LT tire segment and a “slight upturn” in the Chinese market.

Nevertheless, Michelin share prices are currently trading almost 30% lower than at the start of 2018, when levels nearing €130 were reached.