Mib rises and regains 30,300; MPS still bullish

(Alliance News) - On Tuesday, the Mib closed on a bullish trend, taking the point bar back to the 30,300 area, in line with the performance of other European exchanges, as traders continue to weigh the recent moves and valuations of major central banks, positioning themselves on the assumption that they may start cutting interest rates in 2024.

Just on Eccles Building future moves, Federal Reserve Bank of Richmond President Thomas Barkin suggested that the U.S. central bank could cut interest rates if recent progress on inflation continues.

"If the assumption is that inflation slows gradually, obviously we will respond appropriately," Barkin said in an interview broadcast with Yahoo Finance.

Barkin--who serves 'in pectore' on the FOMC and will vote on interest rates starting next year--said he is looking for "consistency and breadth" in inflation data in the coming months, adding that labor demand and inflation are normalizing.

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As a result, the FTSE Mib closed up in the 30,363.53 area, the Mid-Cap rose 1.8 percent to 44,184.61, the Small-Cap advanced 1.4 percent to 27,250.78, and Italy Growth closed in the green 0.1 percent to 8,117.22.

In Europe, London's FTSE 100 traded plus 0.4 percent, Paris' CAC 40 closed ahead 0.1 percent and Frankfurt's DAX 40 advanced 0.6 percent.

On the Mib, Banca Monte dei Paschi di Siena traded well, ending the rally up 2.7 percent, with new price at EUR3.07 per share and following up on the bullish candle of the eve, albeit by a more modest 0.4 percent.

Strength also on Brunello Cucinelli stock, which closes up 2.6 percent after two bearish sessions. The stock began trading Monday on the Milan bluechip list.

Prysmian, on the other hand, marks a plus 2.0 percent at EUR40.65. However, the stock moved up to touch EUR40.80, thus updating its 52-week high.

Amplifon, on the other hand, closed up 1.6 percent, following eve's 1.7 percent decline.

Good buying was also seen on Campari, which moved ahead 0.5 percent to EUR10.15 per share after a 0.9 percent green in the previous session.

Leonardo -- in the green by 1.0% -- announced Monday that Southwest Airlines, among the largest airlines in the U.S. with some 127 million passengers carried annually, has chosen its to redefine the baggage handling system for the transit area at Denver International Airport. The contract, worth more than EUR25 million, includes a custom-developed solution for Southwest to better manage operational, manual baggage handling and transfer activities.

Stellantis - among the few bearish performers - gave up 1.1 percent, with new price at EUR21.28 per share, echoing eve's decline of 0.1 percent.

Nexi, on the other hand, left 0.4 percent on the parterre at EUR7.39 per share. Of note, Citigroup raised its target price on the stock to EUR8.60 from EUR7.20 per share.

On the Mid-Cap, Seco closed the session up 5.9 percent to EUR3.46 per share. Worth mentioning, Goldman Sachs cut the target price to EUR4.40 from EUR7.10 with a 'buy' recommendation.

Industrie De Nora -- up 5.2 percent -- and H2U Technologies, a developer of next-generation electrolyzers, announced on Monday a research agreement to identify and develop low-cost, high-performance electro-catalysts for hydrogen production by water electrolysis.

Sesa, on the other hand, advanced 3.9 percent. The company announced Tuesday that it had approved results for the six-month period ended Oct. 30 with a net profit of EUR41.6 million from EUR41.1 million in the same period a year earlier. Adjusted net income attributable to the group was EUR50.1 million from EUR45.9 million as of Oct. 30, 2022, up 9.1 percent year-on-year. Revenues and other income grew 15 percent to EUR1.50 billion from EUR1.31 billion in the same period 2022.

Fincantieri closed trading up 0.8 percent. On Friday it reported that Vard -- a Norwegian subsidiary -- had signed an agreement with an international customer to build a cable-laying ship. Delivery is scheduled for the fourth quarter of 2026. The value of the contract is between EUR200 and EUR250 million.

Among the bearish, Salvatore Ferragamo closed the session 1.1 percent in the red at EUR12.26. SocGen cut its target price to EUR8.00 from EUR10.00 with a 'sell' recommendation.

OVS, on the other hand, gave up 1.2 percent on the heels of the eve's 0.2 percent decline.

On the SmallCap, Digital Bros did best of all by advancing with 9.3% and new price at EUR10.75, in its fourth closed session with a bullish candle.

Boost on Aquafil, which appreciated 3.6% after Monday's 4.1% decline.

Greenthesis rose 4.5 percent after announcing Monday that it had finalized a new EUR50 million financing agreement with banks Natixis SA, Milan branch, and Intesa Sanpaolo Spa, the former as agent bank and both as lending banks and Mandated Lead Arrangers & Bookrunners. This transaction, reads the company's statement, is aimed "at broadening the financial base in order to be able to support organic investments and acquisitions by external lines."

TXT e-solutions -- up 3.9 percent -- on Monday disclosed that it sold 176,471 of its own shares to the "PIPE" fund -- private investment in public equity -- managed by Alkemia SGR Spa, at a price of EUR17.00 per share, higher than their average carrying value and compared to the average market value of the last 3 months of EUR16.23.

Italia Exhibition Group gave up 2.9%, after two sessions closed among the bullish.

Caleffi, on the other hand, gave up 2.2%, veering lower after two sessions with a bullish candle.

Among SMEs, Cofle closed up 8.4 percent after announcing Tuesday that it is continuing its collaboration with Ineos Automotive, which has led to the creation and customization of advanced reduced gear engagement and disengagement and differential lock and unlock systems, directly developed by Cofle's engineering center, for its new 4x4 off-road vehicle, the INEOS Grenadier. Cofle expects that in 2023, sales related to the order with Ineos will close at EUR1.6 million, while projections for 2024 indicate a significant increase to EUR3.8 million.

Boost also on Franchetti, which brings the price ahead 3.7 percent to EUR4.19 per share echoing eve's gain, equally with 3.7 percent.

Edil San Felice -- down 3.7 percent -- on Monday announced that it had signed the first two contracts implementing the framework agreement with Anas Sardegna for the maintenance and installation of new road safety barriers. The agreement, with a total economic value of EUR5 million, was signed in May, will last four years, and will allow Edil San Felice to make its entry into a new region, continuing its territorial expansion path, the company explained in a note.

High Quality Food--in the red by 2.4 percent--reported Monday that it had purchased the minority shares in its subsidiary Gourmade Srl from shareholders Massimiliano Del Brusco and Riccardo Pacifici, who held 30 percent and 15 percent, respectively, increasing its stake in the subsidiary from 55 percent to 100 percent.

In New York, with stock exchanges in full trading mode, the Dow is advancing 0.6 percent, the Nasdaq is up 0.5 percent, and the S&P 500 is in the green by 0.4 percent.

Among currencies, the euro changes hands at USD1.0978 against USD1.0920 recorded in Monday's European stock close while the pound is worth USD1.2755 from USD1.2643 on Monday evening.

Brent crude is worth USD79.35 per barrel versus USD78.45 per barrel at Monday's close. Gold, meanwhile, trades at USD2,025.59 an ounce from USD2,023.93 an ounce on Monday evening.

Wednesday's macroeconomic calendar includes, at 0050 CET, the trade balance from Japan while, at 0215 CET, from China, it will be the turn of the central bank's interest rate announcement.

At 0800 CET, it will be the turn of British inflation and car registrations from Italy, Germany and France. At 1000 CET, from the Eurozone will come the current account balance while at 1100 CET, also from the Eurozone, it will be the turn of construction sector output.

From the US, at 1300 CET, will come reports on the mortgage market, followed at 1430 CET by the current account balance for the third quarter.

At 1630 CET, again from the U.S., crude oil stocks, EIA report and Cushing's inventory. At 1900 CET, on the other hand, a 20-year bond auction is scheduled.

Finally, a 20-year Treasury bond auction is scheduled at 1900 CET.

No special announcements are scheduled among the companies.

By Maurizio Carta, Alliance News reporter

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