Banks weigh on Mib in the red

(Alliance News) - European stock exchanges on Tuesday morning confirmed forecasts and opened in negative territory, awaiting the release of the latest U.S. inflation data this afternoon, which will give indications on the Fed's next monetary policy moves.

Thus, the FTSE Mib is in the red by 0.3 percent to 31,359.98, the Mid-Cap gives up 0.7 percent to 45,268.28, the Small-Cap leaves 0.3 percent to 27,449.26 on the parterre, while Italy Growth rises 0.1 percent to 8,131.98.

In Europe, Paris' CAC 40 is in the red by 0.2%, as is London's FTSE 100, while Frankfurt's DAX 40 gives up 0.4%.

On the Mib, Pirelli & C takes the top spot at the start, rising 1.2 percent, followed by Leonardo gaining 0.6 percent and Brunello Cucinelli rounding out the podium with a 0.4 percent gain.

Snam - down 0.1 percent - announced Monday that it had successfully completed a dual tranche bond issue under the Sustainable Finance Framework published in recent days, with Second Party Opinion from ISS Corporate, totaling EUR1.50 billion.

Down goes the banking sector, with Banco BPM sitting on the bottom and giving up 1.8 percent. The bank reported Thursday that it ended 2023 with a net profit of EUR1.26 billion, up 85 percent from EUR685.0 million a year earlier.

In the fourth quarter alone, the bank posted a net income of EUR321.1 million, which compares with EUR319.0 million in the previous quarter.

Net interest income rose to EUR3.29 billion from EUR2.31 billion a year earlier while, in the fourth quarter alone, it touched EUR867.7 million, stable on a sequential basis.

The credit institution's CET 1 ratio is 14.2 percent and compares with 12.8 percent as of Dec. 31, 2022.

STMicroelectronics gives up 1.7 percent, while Mediolanum loses 1.4 percent.

On the cadet segment, Saras is in the red by 0.5 percent after announcing that Massimo Moratti Sapa of Massimo Moratti, Angel Capital Management Spa and Stella Holding Spa and Vitol BV, a Dutch company, have entered into a sale and purchase agreement under which the Moratti family has agreed to sell shares in Saras representing about 35 percent of the company's share capital to Vitol at a price of EUR1.75 per share. The price per share implies a capitalization of Saras around EUR1.7 billion.

Tod's gives up 0.1 percent after rising about 18 percent at Monday's close, after the company and L Catterton announced Saturday that the Italian listed company's majority shareholders-Diego and Andrea Della Valle through their vehicles-have signed a framework agreement with Crown Bidco for the latter to buy 11.9 million shares at EUR43.00 each, or 46 percent of the share capital, aimed at delisting from the Italian stock exchange. Crown Bidco's share capital is wholly owned by LC10 International AIV, a fund managed by affiliates of L Catterton Management, formed through a partnership between Catterton and LVMH.

Credito Emiliano gives up 1.1 percent after reporting Thursday that it ended 2023 with a net profit of EUR562.1 million, which compares with a net profit of EUR326.1 million in 2022.

The sharp increase in net income prompted the bank's board to propose the distribution of an annual doubled dividend of EUR0.65 compared to EUR0.33 paid last year.

Pre-tax profit improved to EUR825.1 million from EUR475.2 million while profit from finance and insurance operations rose to EUR1.8 million from EUR1.4 million.

Among smallcaps, Edison climbs 3.1 percent after announcing Tuesday that it closed 2023 with a profit of EUR515 million from EUR151 million recorded in 2022, which was burdened with a tax rate of 74 percent due to the effect of the application of the "extra-profits" decrees.

Sales revenues amounted to EUR18.43 billion, down from EUR30.30 billion in the previous year. The reduction, the company says, is attributable, in particular, to the Gas Activity Branch, which reported revenues down 48 percent to EUR12.13 billion, as a result of the evolution of the price scenario and the contraction of sales volumes. The same dynamics is observed for the Electricity Sector with revenues down 16 percent to EUR8.34 billion, mainly due to lower thermoelectric production down 9.3 percent.

Piquadro is not yet affected by trading. The company reported Thursday that revenues for the first nine months rose to EUR131.5 million from EUR126.8 million in the same period a year earlier.

Banca Sistema leaves 1.0 percent on the parterre. The board of directors on Friday approved the consolidated financial statements as of Dec. 31, which closed with a net profit of EUR16.5 million compared to EUR22.0 million in 2022. Net interest income, at EUR67.0 million, is down 22 percent year-on-year,

Among SMEs, Comal - in the red by 1.4 percent - announced Monday that it had signed a contract worth about EUR27.5 million with a leading Italian energy company for the turnkey, EPC-M supply of a photovoltaic plant in southern Italy. The contract also includes the sale of the "SUN HUNTER" tracker, a proprietary product designed and manufactured by Comal in its Montalto di Castro factory.

Almawave -- down 0.3 percent -- let it know Monday that it has obtained "prestigious certifications related to the use of Artificial Intelligence" in healthcare, a sector "that requires strict compliance with authorities' standards." Almawave, over the past two years, has worked to obtain two prestigious certifications in the healthcare field-issued by the DNV certifying body-synonymous with authority and quality of offerings, it noted in a note.

Ulysses Biomed will cede 2.9 percent after announcing Monday that shareholders have appointed the board, which will be chaired by Stefano Lo Priore.

In addition to Lo Priore, Nicola Basile, Bruna Marini, Carlo Giuseppe Montenovesi, and Cristina Sbaizero join the board. The board will serve until the approval of the 2026 accounts and will earn a total of EUR85,000. Basile was then appointed managing director.

Alberto Maria Camillotti, Ignazio Pellecchia, Massimo Fulvio Campanelli, Valentina De Luca, and Giovanni Licari join the board of statutory auditors.

In New York, the Dow closed in the green 0.3 percent at 38,797.38, the Nasdaq finished down 0.4 percent at 15,942.55, and the S&P 500 closed fractionally in the red at 5,021.84.

Among currencies, the euro changed hands at USD1.0764 against USD1.0776 recorded in Monday's European stock close, while the pound was worth USD1.2644 from USD1.2628 on Monday evening.

Brent crude is worth USD82.31 per barrel versus USD81.73 per barrel at Monday's close. Gold, meanwhile, trades at USD2,038.85 an ounce from USD2,016.30 an ounce last night.

Tuesday's calendar includes at 1110 CET, from Italy, an auction of BTPs with maturities of three, five, seven, 15 and 30 years.

At 1430 CET, from the US, eyes on the consumer price index while at 2230 CET it will be the turn of weekly oil stocks.

In Piazza Affari, the accounts of AbitareIn, Arterra Bioscience, BasicNet, Elica, Riba Mundo Tecnologia and Unidata are expected.

By Claudia Cavaliere, Alliance News reporter

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