Mib pulls oars; Saipem still bullish

(Alliance News) - The Mib index on Friday floated downward breaking the 28,400-point resistance, in line with the equally bearish trends of other European exchanges, as concerns over the economic outlook, especially in China, led trading rooms to adopt a cautious approach.

On the domestic side, Istat in June estimates a moderate cyclical increase in exports with 0.4 percent and a decrease in imports with 3.3 percent. The estimated trade balance in June 2023 is a surplus of EUR7.71 billion, which compares with a deficit of EUR2.51 billion June 2022. The data were released on Friday.

The energy deficit of EUR3.88 billion is down sharply from a year earlier when it was EUR9.33 billion, while the surplus in non-energy trade increases from EUR6.82 billion June 2022 to EUR11.6 billion June 2023.

Thus, the FTSE Mib trades in the red by 0.5 percent to 28,445.14, the Mid-Cap, gives up 0.1 percent to 42,090.51, the Small-Cap is in the red by 0.1 percent to 26,910.15, and Italy Growth gives up 0.1 percent to 8,909.46.

In Europe, London's FTSE 100 is down 1.0 percent as Paris' CAC 40 is giving up 0.7 percent and Frankfurt's DAX 40 is in the red by 0.4 percent.

On the main index of Piazza Affari, DiaSorin is giving up 3.5 percent to EUR91.60 per share, after two sessions closed positive.

Stellantis, on the other hand, is stepping back 2.6 percent after 0.3 percent on the eve of trading.

Unipol gives up 1.1 percent after announcing Friday morning that it had approved consolidated results as of June 30 reporting a half-year closed with a consolidated profit of EUR517 million, down more than 24 percent from the consolidated net profit of EUR684 million in the corresponding period last year, reported under previous accounting standards and on which were reflected extraordinary items of about EUR279 million related to the pro-rata consolidation of BPER Banca's result. The figure for the first half of 2022, the company explains, restated for comparative purposes under the new standards, is EUR433 million.

Telecom Italia, meanwhile, rises 4.4 percent as talks between the KKR fund and the Treasury to buy Netco intensified. As Francesco Bonazzi explains in Alliance News, "the important date in the handling of the dossier, until yesterday, was September 30, by which the KKR fund must submit its binding offer for the Telecom network. An offer ranging from EUR21 billion to EUR23 billion in value, depending on how certain assets shape up. But now all the spotlight is on the next meeting of the Council of Ministers, scheduled for August 28, when government work resumes after the summer break.

"Indiscretions not denied by the executive speak of a four-way agreement between the Ministry of Economy, Cassa Depositi e Prestiti (which has 10 percent of Telecom Italia), F2i and KKR. A formal step in Palazzo Chigi is obviously needed to make the Treasury's entry into the field official. Also at the end of August, in parallel, the U.S. fund is expected to sign credit lines with a pool of 10 banks (some of which are also TIM's creditors) for about EUR10.5 billion," the Alliance News columnist points out.

The top of the list takes Saipem, up 4.3 percent and heading for the third session on the bullish front.

On the Mid-Cap, Mutuionline retreats 3.7 percent, on the heels of eve's 6.0 percent red.

Seco, on the other hand, contracts 2.0%, giving ground after two sessions closed in the green.

Cementir Holding also ranks in the rear, flexing 1.4% after two bullish sessions.

Strength on Salcef, which brings the bar forward 2.1 percent. Of note, the stock has increased its market value by more than 38 percent since the beginning of the year.

Sesa, on the other hand, advances with 1.5 percent, repeating the green of the eve closed with a plus 1.9 percent.

On the Small-Cap segment, Fidia advances 4.5 percent, bringing the price to EUR1.28 after two bearish sessions.

Servizi Italia--flat at EUR1.35--reported Thursday that it closed the first half of the year with revenues and profits up from the same period last year. The company's revenues increased to EUR143.8 million from EUR134.0 million in the first half of 2022. Revenues from washroom services-which in absolute terms account for 74.9 percent of the group's revenues-increased to EUR107.7 million from EUR101.8 million in the first six months of 2022, buoyed by robust growth in washroom Italy.

Esprinet, on the other hand, gives up 2.9 percent, after 2.1 percent green on the eve.

Among SMEs, Cofle leads the way with 5.7 percent after two sessions in the red.

Deodato.Gallery, on the other hand, rises 5.2%, rearing its head after two sessions among the bearish.

Ecosuntek is down 0.8 percent after reporting Wednesday in the evening that Eco Trade, a 63.4 percent subsidiary, signed two preliminary agreements on July 31 involving the purchase of the stakes held in + Energia Spa by Paolo Marinangeli for a 17.90 percent stake and by Soni Mar Srl for a 26.875 percent stake for a total stake of about 45 percent. The purchase involves a total price of about EUR21.3 million to be paid at the closing, expected by the end of October 2023. A sum of just under EUR1.3 million was paid as a down payment on Wednesday.

Rear-ends also for Ecomembrane, which fell 4.1 percent after three sessions in the green.

In New York, the Dow closed in the green 0.2% to 35,176.15, the Nasdaq up 0.2% to 13,737.99, and the S&P 500 finished just above par at 4,468.83.

In Asia, the Nikkei closed in the green by 0.8 percent at 32,473.65, the Shanghai Composite in the red by 2.0 percent 3,189.25, and the Hang Seng finished in the red by 0.9 percent at 19,075.19.

Among currencies, the euro changed hands at USD1.0978 against USD1.1018 in closing European equities while the pound was instead worth USD1.2696 from USD1.2732 on Thursday evening.

Among commodities, Brent crude is worth USD86.18 per barrel versus USD87.28 per barrel at last night's close. Gold, on the other hand, trades at USD1,917.40 an ounce from USD1,918.59 an ounce Thursday night.

Friday's economic calendar includes, from the U.S., at 1430 CEST, room for the producer price index; at 1900 CEST, Baker Hughes drilling rig data will arrive; and, as usual on Fridays, at 2230 CEST, the COT Report.

On the corporate calendar, no events are scheduled.

By Maurizio Carta, Alliance News reporter

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