The “MEGA” European Renewal basket has recorded an impressive performance of +30% since its launch on March 13, 2025 (see article from March 28, 2025). During the same period, Eurostoxx performance was of +10.50%.
source: Kepler Cheuvreux Solutions
The MEGA performance was driven by the increasing probability of a peace agreement in Ukraine and the anticipation of a massive reconstruction of infrastructure.
The key sectors of the selection, namely industry, materials, infrastructure, transport and finance have significantly outperformed the rest of the European market.
German and French stocks, as well as Swiss and Nordic ones, have contributed positively driven by their exposure to the infrastructure, industry and materials sectors.
As we move closer to a peace agreement, a significant part of this scenario is now largely factored in the pricing. In this context, we believe that the additional short-term potential becomes more limited. We therefore consider it is an opportune moment to conclude the tracking of this selection and to focus on other selections.
Building on this success, we are already working on other European themes that shall communicate on very soon.
Disclaimer
This article is for informational purposes only and in no way may be used or considered as an offer or inducement to buy or sell any securities or other financial instruments. Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness.
The analysis in this article is based on many assumptions and different assumptions can lead to significantly different results. Historical performance is in no way representative of future performance. This article has been prepared only for professional investors, who are expected to make their own investment decisions without undue reliance on its contents. This article may not be reproduced, distributed or published without prior authorization from Renalco SA.
