Mib up before ECB; down Pirelli after accounts

(Alliance News) - Afari Square closed higher on Wednesday on the eve of the European Central Bank meeting, with traders not expecting a change of pace from the Christine Lagarde-led institution.

Analysts agree that the central bank will hold rates steady this time. But the focus will be on clues about the timing of the rate cut and the ECB's latest macroeconomic projections.

Rabobank analysts expect the ECB to keep rates unchanged, but said that "it seems likely" that Gross Domestic Product and inflation forecasts for 2024 will be revised downward.

Looking ahead to the rest of the year, Rabo analysts predict there will be only two 25 basis point cuts in total in 2024.

"A key issue for the March 2024 meeting is whether or not Lagarde will note that there was a discussion of rate cuts at the meeting," Rabo noted.

The FTSE Mib closed Wednesday up 0.7 percent to 33,363.84, the Mid-Cap rose 0.9 percent to 46,351.97, the Small-Cap gained 0.3 percent to 27,686.92, and Italy Growth lost 0.1 percent to 8,188.76.

In Europe, London's FTSE 100 closed up 0.4 percent, Paris' CAC 40 lost 0.3 percent and Frankfurt's DAX 40 rose 0.1 percent.

On the main list in Piazza Affari, FinecoBank closed up 1.5 percent after announcing on Wednesday that it raised EUR845.3 million in February from EUR869.8 million in February 2023. Since the beginning of the year, FinecoBank has raised EUR1.43 billion, up from EUR1.62 billion in the same period last year.

Managed assets are positive at EUR269.3 million from EUR184.9 million in the same period of 2023 and include EUR160 million related to Fineco Asset Management's retail inflows, despite EUR196 million in outflows from the insurance segment.

Banca Mediolanum--down 0.3 percent--reported its February 2024 trading results on Wednesday, reporting total net inflows of EUR1.18 billion. In contrast, net inflows in asset management amounted to EUR441 million while new loans disbursed were EUR181 million and protection policy premiums amounted to EUR14 million.

Pirelli gave up 3.5 percent after reporting Wednesday that it ended 2023 with revenues up 0.5 percent year-on-year to EUR6.65 billion from EUR6.62 billion in 2022, beating internal estimates of EUR6.6 billion.

Net income in 2023 was EUR495.9 million and up 14 percent from EUR435.9 million in 2022, reflecting improved operating performance and benefits from the Patent Box.

Pirelli's board will propose to the shareholders' meeting the distribution of a dividend of EUR0.198 per share, for a combined total of EUR198 million. Last year, the company distributed EUR0.218.

On the Mid-Cap, Maire Tecnimont--up 5.5 percent--reported that it ended 2023 with a net income of EUR129.5 million, up 43 percent on the previous year. The board proposed the distribution of a dividend of EUR0.197 per share, up 59% from the previous year, increasing the payout ratio from 45% to 50%.

Acea's board of directors -- down 0.7% -- on Tuesday approved the consolidated financial statements as of December 31, 2023, ending the year with a net profit of EUR294 million compared to EUR279.7 million in 2022. Recurring profit is EUR280 million, up 22 percent from 2022. The board proposed a dividend of EUR0.88 per share, 4% higher than in 2022.

The board also approved the 2024-2028 business plan. The business plan calls for investments in the period 2024-2028 of EUR7.6 billion, where 91 percent of capex will be allocated to regulated activities.

Banca Popolare di Sondrio - in a tie - announced Tuesday that it has placed a EUR300.0 million Tier 2 bond, with demand received amounting to EUR1.8 billion. The bond was issued at a price of 100 and carries an annual coupon of 5.505 percent for the first five years. The issue attracted considerable interest in the market from more than 190 institutional investors from different countries and was allocated 60 percent abroad.

The bond spread, initially announced as five-year mid-swap plus 325 basis points, was consequently reduced to the final level of plus 280 basis points.

Among small-cap companies, Giglio Group rose 2.6 percent after announcing Tuesday that the board of directors approved the underwriting transaction between Giglio Group as lessee and Salotto Brera as lessor, for the lease of the "travel retail" business of Milanofiori Assago, in the province of Milan.

The contract provides for a total term of one year at EUR60,000, with possible renewal to be negotiated within three months of its expiration.

doValue gained 3.2 percent after two sessions among the bearish. The company announced Tuesday that it has entered into a new servicing agreement with Attica Bank SA through its subsidiary doValue Greece Loan and Credit Claim Management Company SA. The agreement covers the management of a portfolio of NPEs worth about EUR500.0 million GBV, itself part of a decuritized portfolio known as Project Omega, which had been transferred back to Attica Bank in February 2024.

Among SMEs, FAE Technology rose 8.0 percent, ending its sixth straight session among the bullish.

In parity was Caribbean Company, after rising double digits during the day. The stock regsitrated high trading volume, with 126,285 changed hands during the session.

Promotica--declining 3.6 percent--reported that it ended 2023 with revenues in the EUR84 million to EUR85 million range, down from EUR89.9 million as of Dec. 31, 2022.

In New York, the Dow is up 0.4 percent to 38,723.17, the Nasdaq rises 0.3 percent to 15,979.40, and the S&P 500 gains 0.4 percent to 5,098.24.

Among currencies, the euro changes hands at USD1.0885 against USD1.0865 recorded at last night's European stock close, while the pound is worth USD1.2726 from USD1.2722 on Tuesday night.

Brent crude is worth USD83.17 per barrel versus USD82.66 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,147.20 an ounce from USD2,124.15 an ounce last night.

Thursday's macroeconomic calendar opens with Japan's foreign reserves, due at 0050 CET, followed by China's trade balance, due at 0400 CET.

In Europe, eyes are on Halifax house prices for the UK market and German factory orders, both due at 0800 CET, ahead of French asset reserves by 45 minutes.

At 1415 CET, focus on the ECB decision, followed 30 minutes later by the lecture by Eurotower number one Christine Lagarde.

Overseas, at 1430 CET, it will be the turn of the US jobless claims and trade balance while, at 1600 CET, Federal Reserve Chairman Jerome Powell will address the US Congress. The day closes with the Fed's budget, due at 2230 CET, and will be interspersed with speeches by other central bankers, in Europe and the US.

Among companies in Piazza Affari, the accounts of Amplifon, Azimut Holding, Danieli, and Fincantieri, among others, are expected.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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