Mib falls below 27,000 points; Saipem bullish

(Alliance News) - The Mib index moves lower in mid-session Wednesday, losing 27,000 points, with markets where fairly cautious sentiment reigns but still prone to selling ahead of major central meetings of the ECB and the U.S. Federal Reserve scheduled for next week.

The latest statements by ECB President Christine Lagarde leave little room for hope of a pause in rate hikes, taking into account that inflationary pressures remain high throughout the single currency aera. At the same time, growing fears about the global economic outlook have weighed on market sentiment.

Thus, the FTSE Mib, gives up 0.9 percent to 26,807.04.

In Europe, Paris' CAC 40 is down 0.2 percent, Frankfurt's DAX gives up 0.2 percent as does London's FTSE 100.

Among the smaller Milanese listings, the Mid-Cap is in the red 0.3% to 42,536.02, the Small-Cap drops 0.2% to 27,159.96, and Italy Growth is in the red 0.1% to 9,172.44.

On the main index in Piazza Affari, among the few bullish performers is Saipem, which moves ahead 1.6 percent to EUR1.2865. On the stock, Voleon Capital Management revised its short position to 0.49 percent from 0.5 percent previously.

Purchases also prevail on Recordati, which appreciates with 0.3% heading for the fifth session to end on the bullish side.

Banca Generali, on the other hand, marks minus 0.3% with price at EUR30.27 per share. The bank reported Tuesday that May net inflows were positive EUR742 million, up 56% month-on-month and 24% year-on-year.

UniCredit -- in the red by 1.7 percent -- reported Tuesday that it successfully issued EUR3 billion in dual tranche covered bank bonds in a total amount of EUR3 billion, with maturities of three and a half and seven years, to institutional investors.

It was closed by Banca Monte dei Paschi, which contracted 2.3 percent, the subject of profit taking after six sessions closed on the bullish side. As Francesco Bonazzi wrote in Alliance News on Tuesday, "the market believes in the third banking hub hypothesis on the route between Siena and Modena. After the rather circumstantial rumors published today by "la Repubblica," Monte Paschi's stock moves up sharply. While that of BPER Banca is taking the hit for a marriage that is still considered bumpy, especially in terms of bancassurance agreements.

"The Gedi Group newspaper reports that consensus on an aggregation to be completed in 2024, as per the commitment with Brussels on a privatization of Rocca Salimbeni, would already be there at both the political and system level. The union between the two banks would be well seen by their respective majority shareholders, namely on the one hand the Treasury-which has 64 percent of MPS-and on the other hand Unipol and Fondazione Banco di Sardegna, which together have 30 percent of BPER," specifies the Alliance News columnist.

On the cadet segment, OVS moves ahead 4.3 percent-after the eve's 1.3 percent decline-taking the lead.

Industrie de Nora is also climbing well, picking up 1.8 percent after two sessions closed among the bearish.

Juventus FC depreciates 0.6 percent. The Juventus club said Tuesday that "with reference to rumors that appeared in today's press, it informs that it has sent a communication to the two other clubs that, like Juventus, have not exercised their withdrawal from the Super League Project - Football Club Barcelona and Real Madrid Club de Futbol - in order to initiate a period of discussion among the three clubs having as its object the possible exit of Juventus from the Super League Project."

Anima Group's net inflows of assets under management in May 2023 were positive at EUR63 million. At the end of May, total assets under management by the Anima Group stood at more than EUR183 billion. The stock opened trading in the red by 0.4 percent.

On the SmallCap, Zucchi advances 2.6 percent to EUR2.35 per share, on the heels of eve's 2.2 percent gain.

In contrast, Il Sole 24 Ore advances 2.3% to EUR0.5280 per share, bringing the weekly to a green of 7.1%.

At the back of the pack is Neodecortech, which gives up 4.4 percent, following a 3.5 percent gain on eve. The stock was previously coming off a string of nine sessions that closed in the red.

Pierrel gives up 2.8 percent to EUR0.1235, after eve's green with 1.2 percent.

Among SMEs, High Quality Food advances 9.1 percent to EUR1.20, on the heels of eve's gain also above 9 percent.

SolidWorld Group - up 4.3 percent - announced on Wednesday that it will collaborate with Marotta S.r.l. and Vection Technologies on the European Space Agency's HEXA-FLY - High-Speed Experimental Fly Vehicles - project. As part of this project, SolidWorld is providing the 3D design software that, through integration with the partners' systems, will design the integration systems and perform the necessary simulations of the hypersonic aircraft for civilian transport across the planet.

On the backside, Giglio.Com retreats 3.9 percent. The stock since the beginning of 2023 marks a red of about 24 percent.

In New York on the European night, the Dow closed just above par, the Nasdaq ahead 0.4 percent, and the S&P 500 picked up 0.2 percent.

Among currencies, the euro changed hands at USD1.0678 versus USD1.0693 at Tuesday's European stock close. In contrast, the pound is worth USD1.2403 from USD1.2419 last night.

Among commodities, Brent crude is worth USD76.65 per barrel versus USD76.18 per barrel Tuesday night. Gold, on the other hand, trades at USD1,965.50 an ounce from USD1,963.81 an ounce Tuesday night.

On Wednesday's macroeconomic calendar, at 1300 CEST, from the US, the report on US mortgages and mortgage rates, followed at 1430 CEST by the trade balance.

At 1630 CEST, the Cushing inventory report and EIA stocks.

By Maurizio Carta, Alliance News reporter

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