(Adds Richemont going in and details on UMG and Vodafone
demotion)
PARIS, Dec 1 (Reuters) - Luxury goods companies Hermes
and Richemont won promotion on Wednesday to
the blue-chip Euro STOXX 50 equity index, which
could increase investment funds' demand for the stocks that have
hit all-time highs.
The index provider said Hermes and Richemont would formally
enter the Euro STOXX 50 on Dec. 20.
Their promotion is likely to fuel further demand for their
shares as funds that automatically track the index add them to
their portfolio.
Universal Music Group and telecoms company Vodafone
will drop out of the Euro STOXX 50 index.
The global luxury goods industry has benefited this year as
shoppers returned to department stores that had been hit by
COVID-19 pandemic lockdowns.
Shares in Hermes, which posted stronger-than-expected
third-quarter sales in October, have risen by nearly 90% in
2021, hitting record highs.
Richemont, which is controlled by South African billionaire
Johann Rupert, last month also posted stronger-than-forecast
first half results, driving its share price to record highs.
(Reporting by Sudip Kar-Gupta
Editing by Bill Berkrot)