European lists contrasted; on the Mib leads Saipem

(Alliance News) - On Wednesday, major European stock markets open trading mixed on a day when Saipem starts well on the Mib and while several macroeconomic data are expected from Italy, Germany and the Eurozone.

Thus, the FTSE Mib is in the green 0.2 percent to 29,443.40, the Mid-Cap is up 0.2 percent to 41,813.18, the Small-Cap is in the green 0.4 percent to 26,102.10, while Italy Growth is slightly below par at 7,886.28.

In Europe, Paris' CAC 40 is in the green by 0.4 percent, London's FTSE 100 gains 0.5 percent, and Frankfurt's DAX 40 rises 0.3 percent.

In macroeconomic news, German import prices fell 13 percent year-on-year in October, following a 14 percent drop in the previous month, compared with market consensus of a 13.4 percent drop, according to Wednesday's data from the Federal Statistical Office.

This is the eighth consecutive period of falling import prices, mainly influenced by a base effect from high price increases in 2022 due to the war in Ukraine.

On the main list of Piazza Affari, Saipem leads the rises with a 2.8 percent gain, boosted by the news that it was awarded two offshore contracts -- one in Guyana and the other in Brazil -- worth about USD1.9 billion.

Also on a positive note was Banca Monte dei Paschi, which finished the podium with assets of 1.9 percent, as did Inwit. On the MPS stock, it is reported that Marshall Wace cut its short position to 0.74 percent from 0.83 percent.

Iveco Group gives up 0.2 percent after announcing Monday that the European Investment Bank has granted funding of up to EUR500 million to contribute to electrification, efficiency and safety in the transport sector through investment in research, development and innovation.

In addition, the company announced that Iveco Bus has been chosen as the main supplier of the school transportation program in Brazil. The company will supply up to 7,100 vehicles over two years, from 2024 to 2025, worth BRL3.1 billion, about EUR580 million at current exchange rates.

Mediobanca - in the red by 0.1 percent - announced Tuesday that it has completed the placement of a new senior preferred bond with a 6-year term maturing in February 2030 and a call option after the fifth, for a total amount of EUR500 million.

Telecom Italia gives up 0.5 percent. The company has kicked off the organization of the so-called NetCo, the business unit that will be contributed to FiberCop at the closing of the transaction to sell the fixed network to KKR, scheduled for summer 2024.

The business unit "will comprise the fixed network infrastructure and the relevant real estate, the management of which it will be in charge of, the wholesale business and the entire stake in the subsidiary Telenergia," the company specified in a note.

Among the worst performers are Campari, which sits at the bottom giving up 1.2 percent, preceded by Tenaris in the red by 0.7 percent and Eni and Generali Assicurazioni, both down 0.6 percent.

On the Mid-Cap, it does well Lottomatica Group - in the green by 0.2 percent - which announced that it has completed the pricing of a total amount of EUR500 million of its senior secured floating-rate bonds maturing in 2030 at an issue price of 99.5 percent, with a coupon equal to the sum of the three-month Euribor rate - subject to a floor of 0 percent - plus 4.00 percent per annum.

The offering is scheduled to close on December 14.

Maire Tecnimont - in the red by 0.3 percent - on Tuesday signaled that it had made full early redemption of the bond to 2024, resulting in the delisting of the related bonds from the markets organized and managed by Borsa Italiana and the Luxembourg Stock Exchange.

The redemption price of EUR165.3 million corresponds to 100 percent of the nominal amount of the bond, together with interest accrued since the last coupon payment date.

Fashion opens well, with Brunello Cucinelli rising 0.9% and reporting a move to the Mib from December. Also up are Salvatore Ferragamo, up 0.5 percent, Tod's, up 0.9 percent, and Salcef Group in the green by 0.6 percent.

Like Tenaris in the red on the main list of Piazza Affari, oil Saras also struggles and gives up 0.8 percent, sitting at the bottom.

On the Small-Cap, KME Group - in the red by 1.4 percent - reported Tuesday that its subsidiary KME has finalized the closing of the agreement signed on November 9 with the pool of lending institutions with an increase in the amount of the lines by an additional EUR50 million and thus for a total amount up to EUR460 million.

At the same time the closing of the outstanding factoring lines for EUR376.5 million was also completed.

Olidata rises 0.9 percent. The company signed an agreement with Snam worth EUR25 million. The deal provides for Olidata's support-through its Sferanet controlalta-for most of its Data Center, Data Management and Security and Network Security components, and Snam's option to purchase according to its own plans.

Gefran gains 1.4 percent, with the company proceeding steadily with its buyback program. Most recently, it disclosed that it purchased its own ordinary shares - between Nov. 20 and Nov. 24 - for a total value of about EUR81,000.

Among SMEs, Circle - flat at EUR6.40 per share - announced Monday evening the approval by FILSE on behalf of Regione Liguria of the "TULIP" project, an acronym for Terminal and mUltimodal Logistic Innovations for the Port and hinterland environment. The 18-month project awards Circle a grant of about EUR220,000 and will have a positive impact on several logistics sectors, starting with port terminals and inland nodes.

Destination Italia--not yet affected by the exchanges--reported Tuesday that the group exceeded EUR6.5 million in terms of its order book referring to tourist bookings of departures that will take place in the year 2024, marking an increase of more than 70 percent compared to the same period in the year 2022.

In Asia, the Nikkei closed Wednesday down 0.3 percent to 33,321.22, the Shanghai Composite gave up 0.6 percent to 3,021.69, and the Hang Seng lost 2.1 percent to 16,993.44.

In New York on Tuesday evening, the Dow closed up 0.2 percent to 35,416.98, the Nasdaq rose 0.3 percent to 14,281.76 while the S&P 500 gained 0.1 percent to 4,554.89.

Among currencies, the euro changed hands at USD1.0989 against USD1.1002 recorded in Tuesday's European stock close while the pound is worth USD1.2700 from USD1.2703 on Tuesday evening.

Brent crude is worth USD81.49 per barrel versus USD81.99 per barrel at Tuesday's close.

On the topic, crude oil inventories in the U.S. fell by 817,000 barrels in the week ended Nov. 24, following the previous week's jump of 9.0 million barrels, according to data from API's Weekly Statistical Bulletin released Wednesday.

This was the first week of decline in crude inventories since the third in October, compared with market expectations of a 2 million barrel drop.

Gold, meanwhile, trades at USD2,043.40 an ounce from USD2,035.78 an ounce on Tuesday evening.

Wednesday's macroeconomic calendar includes, at 1000 CET, the arrival of Italy's business and consumer confidence data. An hour later will be the turn, again from Italy, for the release of the producer price index.

At 1110 CET, an auction of Italian bonds with five- and 10-year maturities is scheduled while, at 1200 CET, it will be the turn of Italian industrial sales.

At 1300 CET from the US will come the mortgage market report, while from Germany will come the inflation figure at 1400 CET from Destatis.

At 1430 CET are coming the US GDP, at 1630 CET oil stocks, EIA report and Cushing's inventory. At 1945 there will instead be a speech by FOMC member Mester.

On the corporate calendar, the results of H-Farm are expected.

By Claudia Cavaliere, Alliance News reporter

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