Mib veers bullish at 27,200 points; STM bullish

(Alliance News) - European stock markets remained under pressure on Monday--with the Mib recovering in the close--which saw trading rooms maintain a cautious stance due to prevailing global economic uncertainties, further aggressive monetary tightening the ongoing political instability in Russia.

Equities faced significant selling pressure last week after central banks raised interest rates by higher-than-expected margins and signaled their intentions for further rate hikes in the coming months, while the U.S. Fed expressed a similar commitment to tightening measures despite pausing the bullish cycle.

In macroeconomic news, the Ifo Business Climate indicator for Germany released Monday fell for the second consecutive month to 88.5 in June, the lowest level since last December and well below market expectations of 90.7. In May it stood at 91.7. The recent drop underscored the lingering uncertainty surrounding the economic recovery in Europe's top economy, as manufacturers reported a decline in new orders due to the dampening effect of global interest rate hikes on demand.

Thus, the FTSE Mib closed up 0.1 percent at 27,242.91.

The Mid-Cap ended in the red 0.6 percent to 41,908.22, the Small-Cap gave up 0.5 percent to 26,758.34, and the Italy Growth down 0.4 percent to 9,014.47.

Paris' CAC 40 picked up 0.3 percent, Frankfurt's DAX 40 left 0.1 percent on the parterre, and London's FTSE 100 gave up 0.2 percent.

On the main index in Piazza Affari, STMicroelectronics closed as the best in the green by 2.2% at EUR43.51 per share after a 2.4% red in the previous session.

Good purchases were also made on ERG, which closed up 1.0%. The latter, through its subsidiary ERG Hamburg Holding, announced on Friday that it had finalized the acquisition from IBV Solar Parks - a company of the German ib vogt group - of 100 percent of Garnacha Solar, a company that owns a photovoltaic park located in the Castilla y León region of northwest Spain. The plant, currently in the final stages of construction, will have an installed capacity of 149 MWp with an expected start-up by the end of 2023.

Eni on the other hand closed up 1.1 percent after announcing Friday that it had signed an agreement to take over Neptune Energy Group, along with its subsidiary Vår Energi. Eni will acquire Neptune's entire portfolio with the exclusion of assets in Germany and Norway: assets in Germany will be spun off before the deal while those in Norway will be acquired by Vår directly from Neptune under a separate share purchase agreement.

On the bearish side Leonardo closed down 4.7 percent. The company announced Thursday that it had signed a Memorandum of Understanding with Airbus to jointly promote integrated training systems and develop responses to future Air Dominance challenges.

Telecom Italia, on the other hand, gives up 3.5 percent. The stock mentions that the company has announced that Elisabetta Romano has been appointed chairman of the board of directors of Sparkle, the group's global operator, the first international services operator in Italy and among the first in the world. CEO Enrico Maria Bagnasco retains the leadership of Sparkle with the proxies given to him at his appointment last November.

Banca Monte dei Paschi is also seen at the back of the pack, with Rocca Salimbeni leaving 1.7 percent on the platter, closing for the third session in a row on the bearish side.

On the bearish-dominated Mid-Cap, Maire Tecnimont took the top spot with 3.4 percent after making it known that its subsidiaries, part of the Integrated E&C Solutions business unit, Tecnimont and Tecnimont Arabia Limited were awarded two lump-sum turn-key EPC contracts related to the petrochemical expansion of the SATORP refinery-a JV composed of Saudi Aramco and TotalEnergies-at Jubail in Saudi Arabia.

The petrochemical plant will enable the conversion of refinery gas and naphtha, as well as ethane and natural gasoline, into higher value-added chemicals. The total value of the contracts is about USD2 billion.

Good buying also on Caltagirone, which brings the bar up 0.8 percent and new price to EUR4.00 after 0.8 percent loss on the eve.

Safilo Group closed down 0.5 percent. The company announced on Monday that, following the company's previous communications regarding the evaluation of a possible sale of the Longarone plant to potential third parties, negotiations are at an advanced stage with Thelios Spa, a company active in the eyewear sector and belonging to the LVMH Group, which would make it possible to preserve the know-how of the site and absorb a substantial part of the staff involved in the same.

Salcef Group, on the other hand, sold 1.5 percent, after announcing Monday that it had signed a preliminary agreement to acquire 100 percent of the share capital of Colmar Technik Spa, which has been in business since 1963 and at its plants in Arquà Polesine and Costa di Rovigo designs and manufactures machinery for the construction and maintenance of railway lines.

Sales also prevailed on Juventus FC, among others, which ended the run down 3.2 percent - worst on the list - in the wake of last Friday's 1.4 percent red.

On the Small-Cap segment, ItwWay closed up more than 14 percent. There was a high trading volume of more than 432,000 pieces on the stock, compared to a three-month daily average of about 16,500. The company reported Monday that KT&Partners has begun coverage of the company's stock with a 'buy' recommendation. KT&Partners set the target price at EUR2.01, a potential upside of 58 percent from current market prices.

Somec -- in the red by 0.3 percent -- reported Monday that its subsidiary Bluesteel had won a new contract worth GBP10.5 million, over EUR12 million at current exchange rates, for a prestigious architectural project in central London.

In contrast, Mondo TV is closed down 1.5 percent after announcing Friday the closing of a new licensing agreement for the Gorjuss brand with Coriex. The contract will last until Dec. 31, 2025, and provides for the payment of a new guaranteed minimum and, if that amount is exceeded, the payment of royalties by the licensee. On all such amounts, Mondo TV will retain its commission of 30 percent.

Among SMEs, Destination Italia did best of all with an asset of more than 12 percent, after it reported on Monday that the group reached the value of about EUR35 million in terms of the order book of tourism bookings in the first 5 months of the year, marking a 150 percent increase over May 31, 2022.

Ilpra, on the other hand, took home an appreciation of 3.4 percent, after giving up 1.7 percent in the previous session.

Circle -- up 1.2 percent -- announced Monday that it has been awarded, along with 21 other European partners, the eFTI4EU project with a total value of EUR28.3 million. The project for Circle is worth EUR562,500 and has a duration of 36 months.

Neosperience closed 1.9 percent in the red despite reporting Friday that it has been chosen by Sinelec, a technology company of ASTM Group, one of the World's largest highway operators, to create its C-ITS platform, dedicated to vehicle-to-everything communication, a foundational element for the development of the smart roads of the future.

Italia Independent, on the other hand, gave up 5.0 percent to EUR0.6650, after last session's 1.5 percent green. The stock had previously closed four sessions in a row in negative balance.

In New York, the Dow Jones is giving up 0.2 percent, the S&P 0.1 percent, and the Nasdaq marks minus 0.2 percent.

Among currencies, the euro changes hands at USD1.0912 versus USD1.0882 at Friday's European stock close. In contrast, the pound is worth USD1.2719 from USD1.2710 on Friday evening.

Among commodities, Brent crude is worth USD73.80 per barrel versus USD74.28 per barrel at Friday's close. Gold, on the other hand, trades at USD1,926.92 an ounce from USD1,933.20 an ounce Friday night.

On Tuesday's calendar, at 1000 CEST will come data on Italian business confidence levels and, at the same time, ECB number uon Christine Lagarde will give a speech, half an hour after Panetta and before Elderson.

At 1400 CEST, eyes on the U.S. construction premiums, while at 1400 CEST it will be Schnabel of the ECB who will give a speech.

At 1430 CEST, from the U.S., focus on durable goods orders, at 1600 CEST on U.S. consumer confidence, and in the evening, at 2230 CEST on weekly oil stocks.

On the corporate calendar from the Piazza Affari, no particular announcements are scheduled.

By Maurizio Carta, Alliance News reporter

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