Mib loses 30,000 points; MPS shines

(Alliance News) - On Wednesday, the Milanese blue chip segment gave ground, losing 30,000 points -- to the lowest in a month -- and aligning with the bearish trend of other European stock markets.

Eurozone inflation saw a new acceleration in December, in line with analysts' forecasts, as released by Eurostat on Wednesday. Eurozone consumer prices rose 2.9 percent year-on-year in December after rising 2.4 percent in November, coming in line with experts' expectations.

Weakening the buying side were more aggressive remarks by European Central Bank officials tempered-to put it mildly-expectations of interest rate cuts. ECB President Christine Lagarde, who will give a further speech in Davos this afternoon, said that rates are likely to be cut in the summer, but stressed that the victory against inflation has not yet been achieved, while Dutch central bank chief Klaas Knot added that markets are too much taking monetary easing for granted, and anticipating it.

Thus, the FTSE Mib is giving up 1.2 percent to 29,986.88.

In Europe, Paris' CAC 40 is contracting 1.2 percent, the FTSE 100 is giving up 1.6 percent, and Frankfurt's DAX 40 is marking minus 1.1 percent.

Among the smaller listings, the Mid-Cap is giving up 0.9 percent to 43,895.47, the Small-Cap is in the red 1.3 percent to 27,230.55, while Italy Growth is giving up 0.3 percent to 8,213.96.

On the Mib, marked selling on Brunello Cucinelli, which marks a minus 2.3% with new price at EUR83.60, ringing, if confirmed, the fourth close on the bearish side.

Another luxury stock, Moncler, also gives up, stepping back 2.2 percent to EUR51.44. It is worth mentioning that on the stock HSBC cut its target price to EUR68.00 from EUR70.00 with a 'buy' recommendation.

Pirelli, on the other hand, is giving up 1.5 percent to EUR5.12 per share after Tuesday evening's fractional green.

Enel Finance International - a financial subsidiary of Enel - announced that it has launched a two-tranche 'Sustainability-Linked Bond' on the Eurobond market aimed at institutional investors for a total of EUR1.75 billion. The stock paerto trade at a loss of 1.1 percent.

Among the bullish few is Telecom Italia advanced 3.0% to EUR0.2919. As part of the activities aimed at the closing of the NetCo divestment transaction and following the signing of the transaction agreement with Optics BidCo - a subsidiary of KKR -, it announced on Wednesday that it had received approval to execute the transaction for the purposes of Golden Power regulations.

Still doing better is Banca Monte dei Paschi, which is picking up 2 percent to EUR3.18 per share, on the heels of eve's green with 0.9 percent.

On the Mid-Cap, LU-VE is stepping back 4.1% to EUR22.35 per share, after two sessions closed among the bullish.

OVS is stepping back 3.1% to EUR2.06 per share, on its third session with a bearish candle. Marshall Wace cut its short on the stock to 1.29% from 1.39% previously.

Maire Tecnimont--down 0.7 percent--reported Wednesday that subsidiary Tecnimont has been awarded a front-end-engineering design contract for a green ammonia plant in Norway. The contract was awarded by Fortescue, a global company active in green technologies, energy and metals.

Sales also on Carel Industries, which is stepping back 1.8 percent in the wake of the previous two bearish sessions.

Among the few bullish performers is Webuild, which is moving ahead 1.6 percent, in the aftermath of a 1.1 percent decline.

Also doing well is Philogen, which appreciates 0.9%, rearing its head again after two sessions among the bearish.

On the Small-Cap, Tessellis rises 7.5% with price at EUR0.5710, up after two sessions closed among the bearish.

Good buying also on SoftLab, which moves ahead 3.5 percent. The stock-which has been missing the ex-dividend since 2003-seeks its third session on the bullish side of the list.

Fidia, on the other hand, gives up 8.5 percent, bringing its loss on a weekly basis to minus 37 percent.

Eurogroup Lamination, on the other hand, is giving up 4.5 percent, after two sessions closed among the bullish.

Among SMEs, Eprcommunication is advancing more than 11 percent, after two bearish sessions.

Caribbean Company is advancing 2.1 percent, after the previous session's negative balance of 5.0 percent.

Cofle is giving up 4.9%, after two sessions closed in the green.

Deodato.Gallery, on the other hand, is giving up 4.3 percent, with price at EUR0.42 on the heels of the previous session's negative balance that closed with the same loss.

Among U.S. exchanges, in the European overnight, the Dow gave up 0.6 percent, the S&P 0.4 percent while the Nasdaq lost 0.2 percent.

Among currencies, the euro changed hands at USD1.0872 against USD1.0878 recorded in Tuesday's European stock close while the pound is worth USD1.2679 from USD1.2659 last night.

Brent crude is worth USD76.950 per barrel versus USD78.46 per barrel at Tuesday's close. Gold, meanwhile, trades at USD2,025.56 an ounce from USD2,033.83 an ounce last night.

On Wednesday's economic calendar, at 1100 CET will come Eurozone inflation.

At 1300 CET, eyes on the US mortgage rate report while, at 1430 CET, it will be the turn of the US retail sales data. At 1515 CET, the industrial production figure is expected while at 1615 CET, ECB number one Christine Lagarde will speak.

Finally, at 2230 CET, from the U.S. will come the data on weekly oil stocks.

By Maurizio Carta, Alliance News reporter

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