Mib rises; rally on listings after central banks

(Alliance News) - The Mib closed higher above 30,300 on Thursday, with trading rooms minutely analyzing monetary policy decisions by major central banks. The Fed on Wednesday held interest rates steady but signaled interest rate cuts of 75 basis points for next year, far more than initially expected.

The European Central Bank on Thursday left rates unchanged and predicted that inflation will reach its target of 2.0 percent between 2025 and 2026. The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and deposits will remain unchanged at 4.50 percent, 4.75 percent and 4.00 percent, respectively.

Overall, Eurotower experts expect overall inflation to average 5.4 percent in 2023, 2.7 percent in 2024, 2.1 percent in 2025 and 1.9 percent in 2026. Compared with the experts' September projections, this amounts to a downward revision for 2023 and especially 2024.

In addition, the Governing Council also decided today to continue the ??process of normalizing the Eurosystem's balance sheet. It intends to continue to fully reinvest the principal repaid on maturing securities purchased under the pandemic emergency purchase program -- the PEPP -- during the first half of 2024. In the second half of the year, it intends to reduce the PEPP portfolio by EUR7.5 billion per month. The Governing Council intends to discontinue reinvestments under the PEPP at the end of 2024.

The Bank of England on Thursday voted by a majority of 6 in favor and 3 against to keep its benchmark interest rate at the 15-year high of 5.25 percent for the third consecutive time at its December meeting, even in the face of signs that the economic landscape is deteriorating. The central bank maintained an "aggressive" stance, stressing the likely need for prolonged tight monetary policy to curb inflation.

In addition, from Threadneedle Street they highlighted the potential need for further tightening should persistent inflationary pressures emerge.

Thus, the FTSE Mib closed up 0.2 percent to 30,359.06, the Mid-Cap gained 2.6 percent to 43,677.02, the Small-Cap rose 1.7 percent to 26,935.43, and Italy Growth closed up 0.3 percent to 8,061.83.

In Europe, London's FTSE 100 closed up 1.3 percent, Paris' CAC 40 up 0.7 percent and Frankfurt's DAX 40 posted a fractional rise.

On the main Piazza Affari list, buoyancy on DiaSorin, ahead 10 percent, rearing its head after five sessions in a negative balance.

Purchases also on CNH Industrial, which closed ahead 5.6 percent, breaking a three-session bearish mini-trend. The company reported that it bought back 4.7 million of its own ordinary shares between Dec. 4 and 8, for a total value of EUR47.4 million.

Amplifon, on the other hand, rallied 3.9 percent, in its fifth bullish session.

Banca BPER, on the other hand, left 5.9 percent on the parterre, in its third bearish session.

Banca Monte dei Paschi, on the other hand, gave up 6.0% to EUR3.04 per share. Of note, Deutsche Bank raised its target price on the stock to EUR4.40 from EUR4.10 with a 'buy' recommendation.

On the MidCap, Alerion advanced 10%, following a 2% gain in the previous session.

Tinexta, on the other hand, closed more than 13 percent ahead. The company announced Thursday that it had finalized-through its subsidiary Warrant Hub Spa-the acquisition for 73.9 percent of France's ABF Group SAS. The enterprise value for 100 percent of ABF Group was estimated at EUR155 million. Therefore, assuming zero net financial debt, the consideration for the purchase of 73.9 percent of the company's capital would be EUR114.6 million, of which 85 percent or EUR97.4 million would be paid at closing and the remainder would be paid through two earn-outs, amounting to EUR5.7 million and EUR11.5 million, respectively, linked to performance in 2023 and 2024.

Brunello Cucinelli -- up 6.9 percent -- announced Wednesday that it expects to end the year with positive results, five days before debuting on the FTSE Mib of Borsa Italiana.

"After the very nice results of the nine months and the very interesting growth in October, November and the first part of December, we envision for 2023 a very good growth in revenues, between 22% and 23% at current exchange rates - over EUR1.1 billion -, raising estimates compared to previous expectations of between 20% and 22%, with a very important marginality and profit, within our idea of polite growth and healthy profit," said the founder of the eponymous brand, Brunello Cucinelli.

Industrie de Nora, on the other hand, advanced 8.6 percent, following up on the profit, albeit by 0.4 percent, of the previous session.

OVS -- up 5.7 percent -- reported Wednesday that net sales for the first nine months of its 2023-2024 fiscal year rose to EUR1.10 billion from EUR1.09 billion year-on-year. The performance of direct stores was better than that of franchise stores, which were more adversely affected by adverse weather conditions as they were mostly kids formats. Ebitda in the period ended Oct. 31 showed a slight year-on-year decline, to EUR121.5 million from EUR124.1 million.

Banca Popolare di Sondrio, on the other hand, gave up 2.3 percent, in its third bearish session.

Among the few bearish performers was also Banca Farmafactoring, which gave up 3.3 percent, after eve's tentative green with 0.1 percent.

On the SmallCap, Aquafil closed ahead 9.2 percent, bringing the price to EUR3.20 after the eve's contraction with 2.3 percent.

doValue, on the other hand, took home 5.9% after two sessions ended in the red.

Biesse, on the other hand, pushed ahead 6.0 percent, with price at EUR11.94, turning upward after two sessions in the negative balance.

Among SMEs, purchases on Convergenze, which closed up 2.3% after a flat session on eve.

Friulchem, on the other hand, rallied 4.7%, after a long bearish trend and with the stock not closing in the green since the last decade of November.

Good buys also on Alfio Bardolla, bullish with 4.4 percent after Wednesday's 1.6 percent decline.

Among the bearish among many, Cofle left 2.4 percent on the parterre, the subject of profit-taking after two sessions of profit-taking in which it rallied more than 14 percent.

In contrast, Estrima contracted 6.6 percent, with new price at EUR0.85 per share.

In New York, the Dow is advancing 0.3%, the Nasdaq is advancing 0.2%, and the S&P 500 is advancing 0.3%.

Among currencies, the euro changes hands at USD1.0998 against USD1.0793 recorded in Wednesday's European stock close while the pound is worth USD1.2669 from USD1.2527 last night.

Brent crude is worth USD76.93 per barrel versus USD73.20 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,040.15 an ounce from USD1,980.52 an ounce last night.

Friday's macroeconomic calendar features China's industrial production at 0300 CET, while at 0800 CET it will be the turn of Germany's wholesale price index. At 0930 CET, Germany's manufacturing and services PMI, at 1000 CET Italy's inflation along with the Eurozone's manufacturing and services PMI.

At 1100 CET, coming up the Eurozone trade balance, at 1515 CET the US manufacturing and industrial production, followed at 1545 CET the services and manufacturing PMI.

At 1900 CET it will be the turn of data from Baker Hughes, and at 2130 CET, as usual on Fridays, the COT Report.

Among the companies, no special announcements are expected.

By Maurizio Carta, Alliance News reporter

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