Banking stocks sink Europeans; TIM good on Mib.

(Alliance News) - On Tuesday, Piazza Affari closed in the red, sunk by banking stocks discounting last night's government announcement on the "levy" on banks' extra profits, limited to 2023."

On the day, banking stocks were also subject to the most selling in the rest of Europe. "If one country moves, others may follow, and with numerous elections coming up in the next few months, politicians across the continent may be looking to boost their approval ratings with hints of taxes on banks and other sectors that could be accused of profiting while consumers struggle," commented Chris Beauchamp, chief market analyst at online trading platform IG.

The European Central Bank's rate increase, deputy prime minister and Infrastructure Minister Matteo Salvini said Monday evening, explaining the rule passed by Palazzo Chigi, "has led to a rise in the cost of money for families and businesses" while "there has not been an equally solicitous, quick and important increase for consumers. So, in this gap, there will come a 40 percent drawdown from the multibillion-dollar extra-profits of banks."

The FTSE Mib thus closed down 2.1 percent at 27,942.25.

Among the smaller listings, the Mid-Cap gave up 1.0 percent to 41,478.30, the Small-Cap finished down 0.8 percent to 26,675.84, and Italy Growth gave up 0.7 percent to 8,858.77.

Paris' CAC 40 finished 0.7 percent in the red, Frankfurt's DAX 40 gave up 1.1 percent, and London's FTSE 100 marked a minus 0.4 percent.

On the bearish-majority Mib, banks hurt after the government's "extra profits" initiative. BPER Banca closed down 11 percent as did MPS, FinecoBank ended the day down 9.9 percent, Banco BPM contracted 9.1 percent preceded by Intesa Sanpaolo, Banca Mediolanum and UniCredit in the red by 8.7 percent, 6.0 percent and 5.9 percent.

Also down were Banca Generali and Mediobanca, marking minus 3.2% and 2.5%.

On the other side of the list, Recordati takes the top spot with 2.5 percent followed by Telecom Italia, which closed up 2.2 percent. According to the Sole 24 Ore website, the U.S. fund KKR has brought in CPPIB, Canada's largest public pension fund, "which manages a total of EUR400 billion," to participate in the investment in Netco.

Terna - up 0.6 percent - and Steg, the Tunisian electricity and gas company, signed the Grant Agreement with the European Commission that kicks off the EUR307 million financing earmarked for the electricity interconnection between Italy and Tunisia, the invisible energy bridge, dubbed "Elmed," that will link Europe and North Africa.

On the Mid-Cap, Sanlorenzo closes at the top with a rise of 2.9 percent. illimity Bank follows in the green by 2.8 percent while the other banks also suffer on this list.

Credito Emiliano is at the bottom and gives up 8.3 percent, Banca Popolare di Sondrio is down 5.7 percent, BFF Bank 3.2 percent, and Banca Ifis finishes 2.2 percent in the red.

Of note, on Tuesday afternoon the board of Banca Popolare di Sondrio reviewed and approved the consolidated half-year financial report as of June 30 with a record net profit of EUR207.1 million from EUR105.0 million in the same period last year.

Net interest income amounted to EUR427.0 million up from EUR320.0 million in the first half of 2022.

Results also for Credem, which on Monday approved consolidated results for the first half of the year, a period closed with consolidated net income at EUR298.7 million from EUR157.0 million in 2022. Credem points out that it expensed EUR25 million in contributions to funds for the management of troubled banks in that perid. The result is up 90 percent from the same period last year.

Webuild closed down 2.9 percent. On Monday it reported having bought 550,000 of its own ordinary shares in the week of July 31 to August 3.

The average price was EUR1.7603 per share, for a total value of EUR968,137.64.

On the Small-Cap, SS Lazio closes in the red by 2.4 percent after announcing Tuesday that it has finally acquired the sports contract rights of footballer Gustav Tang Isaksen from FC Midtjylland for a consideration of EUR12 million to be paid in three equal installments plus bonuses linked to the achievement of particular sports results up to a maximum of EUR4 million.

Greenthesis - parity at EUR0.89% - through its wholly owned subsidiary under Emirates law Ambienthesis Middle East DMCC, on Monday announced that it has been appointed to carry out characterization activities, in the amount of approximately EUR100,000, instrumental to the subsequent remediation of hydrocarbon-contaminated soil to be carried out in the Abu Dhabi industrial area.

Pierrel - flat at EUR157 per share - announced Monday that it has obtained marketing authorization in Ecuador for its Articaine-based dental anesthetic, Orabloc in the 1:100,000 formulation.

With the registration in Ecuador, Orabloc makes its entry into South America.

The board of directors of AbitareIn -- in the red by 0.8 percent -- on Monday approved results for the third quarter ended June 30 in which it reported a consolidated profit of EUR22.9 million from EUR5.7 million in the same period a year earlier.

Among SMEs, Mondo Tv France - up 1.8 percent - announced Tuesday the signing of an agreement with the AIDA Foundation that will provide an exclusive license to produce an original musical inspired by the new series Grisù.

SIF Italia and Visibilia Editore did well, closing up 15 percent and 36 percent, respectively.

In New York, the Dow Jones is down 1.0%, the S&P gives up 1.1%, and the Nasdaq is in the red by 1.5%.

Among currencies, the euro changes hands at USD1.0970 versus USD1.1001 in Monday's European stock close while the pound is worth USD1.2731 from USD1.2771 on Monday evening.

Among commodities, Brent crude is worth USD85.20 per barrel versus USD85.27 per barrel at Monday's close. Gold, meanwhile, trades at USD1,925.83 an ounce from USD1,933.40 an ounce on Monday evening.

On Wednesday's economic calendar, overnight at 0150 CEST, money supply data are expected from Japan while at 0330 CEST, China will release inflation data.

At 0800 CEST, again from Japan, come machine tool orders and at 1100 CEST there are UK Gilt auctions and at 1130 Bund auctions in Germany.

In the afternoon, from the U.S., at 1300 CEST mortgage data are due while at 1630 CEST crude oil stocks will come out.

On the Piazza Affari calendar, the results of Assicurazioni Generali, Emak and Laboratorio Farmaceutico Erfo will come out.

By Chiara Bruschi, Alliance News reporter

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