Buy-side flows hit order books; MIB hits new highs

(Alliance News) - European stock markets closed Monday's session in positive territory, with the MIB refreshing its all-time highs after an intraday peak of 50,326 points, before partially retracing gains due to technical profit-taking.

The rally was primarily fueled by a significant drop in Brent crude prices, as the market reacted to growing expectations of a deal between the US and Iran to reopen the Strait of Hormuz. The move in crude triggered a downward repricing of inflation expectations and, consequently, of expected policy rate trajectories.

The improvement in the macro-risk outlook supported risk asset sentiment in Europe, with flows directed toward cyclical equities, the direct beneficiaries of a rate environment that remains high but is seen as less restrictive than previously anticipated.

Despite the easing of inflationary pressures, money markets continue to price in a restrictive cycle from the ECB, with approximately two further hikes expected by year-end, confirming a context where the trade-off between growth and inflation remains not fully resolved.

Consequently, the FTSE Mib closed up 1.4% at 50,220.35 points, the Mid-Cap advanced 1.6% to 62,379.55 points, the Small-Cap finished 1.0% higher at 34,994.51 points, while Italy Growth gained 0.9% to 8,963.63 points.

In Europe, Paris's CAC 40 climbed 1.8%, while Frankfurt's DAX 40 closed up 2.0%.

Back in Milan, Eni was among the few laggards, posting a 1.1% loss following the decline in crude prices, after a 2.1% drop on Friday evening.

Nexi surged 6.5%. As Francesco Bonazzi explains on Alliance News, 'The Treasury is shielding Nexi following rumors of an incoming bid from the US fund CVC, and the European paytech stock is soaring on Piazza Affari. A similar fate befell France's Worldline, which is undergoing a deep restructuring'.

The alarm bell rung in recent weeks - writes Bonazzi - did not go unnoticed at Via XX Settembre. Thus, the board of CDP Equity met yesterday and approved the possibility of increasing its stake in Nexi to 29.9% (from the current 19.14%). Nexi's largest shareholder is currently the Hellman & Friedman fund with 22.2%, while the free float is notably high at 58.6%.

'The operation will be carried out via derivatives, with options to be exercised after obtaining the required authorizations, but there is also the possibility of direct market purchases', the columnist explains in his 'Affari in Piazza' column.

Avio jumped 7.2% to EUR38.69 per share, closing as the top blue-chip performer. Intesa Sanpaolo confirmed its 'buy' recommendation and target price of EUR47.00 on Avio, in light of the production expansion announced by Lockheed Martin in the THAAD missile segment. Analyst Gabriele Gambarova highlights how the strengthening of production capacity in the US could create significant opportunities for the Italian group in the solid propellant motor market.

Buzzi - up 3.7% - announced on Monday that it repurchased 436,780 of its own ordinary shares between May 18 and 22. The shares were bought at an average unit price of EUR43.2825, for a total consideration of EUR18.9 million.

Intesa Sanpaolo closed 2.2% higher. Notably, the company announced on Monday that, through its IMI Corporate & Investment Banking division, it participated alongside a pool of international banks in a financing deal exceeding GBP500 million for Eni CCUS Holding 'aimed at strengthening the Carbon Capture & Storage project platform'.

In the mid-cap segment, Revo Insurance showed strength, gaining 7.5% to EUR23.75 per share after two bearish sessions.

Brembo - up 2.0% - announced on Friday a joint venture with Ningbo Huaxiang Electronic Co., 'a key player in the automotive components industry in China', according to the press release. The two companies will collaborate on the localization of Sensify® in China, jointly contributing to the evolution of intelligent braking technology in the automotive sector.

Alerion Clean Power - up 1.8% - announced last week that it had approved a capital increase excluding pre-emptive rights for up to 10% of the share capital, for a maximum value of EUR135.6 million through the issuance of up to 5.4 million new ordinary shares at a subscription price of EUR25 per share. The operation will take place from May 26 to June 8.

MFE-MediaForEurope is preparing new legal moves in the litigation over the 'Pasapalabra' format following the recent ruling by the Spanish Supreme Court. The group explained that the Audiencia Provincial of Madrid quantified the amount awarded to ITV at approximately EUR74 million in the enforcement proceedings, but without considering the Supreme Court's decision regarding 'El Rosco', the program's final wheel.

Class A shares closed up 0.8%, while Class B shares gained 0.6%.

d'Amico, however, shed 1.4% to EUR8.06, marking its third consecutive session with a bearish candle.

On the Small-Cap index, EuroGroup Laminations showed strength, pushing the price up over 16% following a 1.6% gain in the previous session.

BasicNet - up 1.5% - announced on Monday that it repurchased 50,500 of its own ordinary shares between May 18 and 22, for a total consideration of approximately EUR347,000.

Trevi Finanziaria Industriale - up 4.0% - announced on Friday that it had approved consolidated results for the first quarter, which closed with revenue and profitability down compared to the same period last year but with strong growth in the order backlog and new contract acquisitions. The company specified that the financial report as of March 31 was approved exclusively in relation to the rights issue capital increase approved by the shareholders' meeting on May 13, 2026. In the future, the group will return to semi-annual financial reporting.

Among the minority of decliners, The Italian Sea Group fell 7.1%, its third bearish session.

Among SMEs, Ena gained over 12% after two bearish sessions, bringing the price to EUR0.68.

Grifal - up 9.2% - announced that the board of directors re-approved the financial statements as of December 31, 2025, and updated the industrial plan. The re-approval of the 2025 accounts and the 2026-2030 plan was deemed appropriate by Grifal 'in order to evaluate, based on the outlook and foreseeable evolution of management, the progress of ongoing discussions for the rescheduling of the company's financial debt'.

The company specifies that the 2025 consolidated financial data have not changed compared to what was communicated on March 26. Specifically, the group closed 2025 with a consolidated net loss of EUR3.1 million compared to a profit of EUR150,000 in 2024.

ESI - up 6.5% - announced on Monday the acquisition of 100% of ED Solar 3 Srl, a special purpose vehicle established for the construction and management of a 3 MWp photovoltaic plant in the Municipality of Anzio, in the province of Rome. The transaction also includes surface rights on approximately 4 hectares of land intended for the development of the plant.

Alfonsino - down 2.9% - announced on Monday that its subsidiary Rushers Srl renewed its agreement with Just Eat Italy, continuing the strategic collaboration launched between the parties in November 2025. The agreement concerns the strengthening of operational synergies in the on-demand delivery sector and is part of a context already active in 20 centers at the start date of the new contract, with a possible progressive extension to other areas over time.

Sicily by Car fell 0.7% to EUR2.95 per share. Banca Akros confirmed its 'buy' recommendation and target price of EUR5.00 on the stock, indicating a potential upside of 68% compared to the closing price of EUR2.97 on May 22. According to Davide Zappa, the 17% growth in the first four months of 2026 relates exclusively to the increase in rental revenue generated in Italy in the first quarter of 2026, a figure already communicated by the company on April 22.

Finanza.tech, meanwhile, dropped 9.6% after Friday evening's flat session, with a final price of EUR0.24 per share.

On the currency front, the euro is trading at USD1.1645 from USD1.1602 on Friday evening, while the pound is trading at USD1.3501 from USD1.3435 on Friday evening.

Among commodities, Brent is trading at USD97.60 per barrel from USD104.14 on Friday evening, while gold is worth USD4,572.45 an ounce from USD4,514.86 at Friday's close.

Tuesday's economic calendar features the publication of the BoJ's CPI data from Japan at 0700 CEST.

From the US, house price index data is due at 1500 CEST, while M2 money supply data will be released at 1900 CEST.

On the Piazza Affari corporate calendar, results are expected from ATON Green Storage, expert.ai, Mondo TV, Rocket Sharing Company, and Talea Group.

By Maurizio Carta, Alliance News reporter

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