Indices down after drop in Italy and Eurozone confidence

(Alliance News) - Piazza Affari moved to the parity line in mid-session Wednesday after the release of some macro data for Italy and the Eurozone.

Italy's consumer confidence index dropped to 106.5 points from 106.7 points in July while the market had expected a steeper drop to 105.6 points. Among businesses, however, confidence fell to 106.8 points in August from 108.9 points in July.

Italy's industrial sales rose 0.4 percent on a monthly basis in June after improving 1.6 percent in May, with the latter figure revised upward from the initial 1.5 percent increase. On a yearly basis, sales rose 1.3 percent after falling 0.5 percent in May.

In August, the economic sentiment indicator for the Eurozone continued to decline, standing at 93.3 and down 1.2 points and losing ground for the fourth consecutive month. This is the lowest reading since November 2020, data from the European Commission showed Wednesday. In the EU, the figure stood at 92.9, down 0.6 points from August.

The FTSE Mib is down 0.1 percent to 28,875.52, the Mid-Cap rises 0.4 percent to 42,240.09, the Small-Cap gives up 0.1 percent to 27,241.65, and Italy Growth rises 0.3 percent to 8,920.43.

In Europe, Paris' CAC 40 is down 0.5 percent to 7,335.49, Frankfurt's DAX 40 drops 0.5 percent to 15,847.47 while London's FTSE 100 is just above par at 7,466.65.

On the blue chip list, Monte dei Paschi di Siena does best of all, rising 1.9 percent. The bank has concluded the placement of an unsecured senior preferred bond issue with a maturity of 4 years - repayable in advance after 3 years - aimed at institutional investors in the amount of EUR500 million, in line with the objectives of the 2023 funding plan and in compliance with MREL targets.

The deal raised orders exceeding EUR700 million from more than 90 investors both Italian and international.

Saipem follows, gaining 0.5 percent. The company announced Tuesday that it had received formal notification of the completion of the Golfinho transaction between BW Energy and Petrobras, under which BW Energy acquired 100 percent of the exploitation rights to the Golfinho field.

Under the terms of the agreement signed at the end of June, the consideration BW Energy will pay Saipem for the sale of the FPSO is USD73 million, of which USD38 million upon completion of the Golfinho transaction and USD35 million in 18 monthly installments following the transfer of the unit.

Banks do well, with BPM, BPER Banca and Intesa Sanpaolo registering gains of just under 1.0%.

Telecom Italia continues to gain, up 0.3% at mid-session, still benefiting from the news on Monday evening that the Italian government gave the go-ahead for a stake of up to EUR2.2 billion in TIM's fixed-line network through a joint bid with U.S. investment fund KKR.

Down went the technology sector, with STMicroelectronics bottoming out, giving up 1.2%, and energy with Enel dropping 1.0%.

On the Mid-Cap, Saras reverses its recent bullish trend and falls 0.3%. On the stock, it is reported that WorldQuant revised its short position to 0.69% from 0.73% previously. Marshall Wace, meanwhile, cut its short to 1.82% from 1.99% previously.

Brunello Cucinelli's board of directors -- up 5.2% -- on Tuesday approved the half-year financial report, which achieves a net profit of EUR66.7 million, up 32% from EUR50.6 million as of June 30, 2022, with a margin of 12.3% compared to 12.2% last year.

Revenues amounted to EUR543.9 million, up 31% at current exchange rates compared to June 30, 2022, in line with preliminary figures released last July 13.

In addition, the company announced the launch of a new buyback. In this regard, a maximum of 90,000 Brunello Cucinelli ordinary shares with no par value, representing about 0.1 percent of the company's share capital, may be purchased.

On the Small-Cap, Olidata gives up 1.2 percent on profit-taking after rallying more than 12 percent at Tuesday's close. The company announced Monday that it had been awarded a 30% RTI contract worth more than EUR30 million. The company explained that the framework agreement covers the awarding related to the supply, maintenance and management of upgrades to Sogei's Data Connectivity Switches for the next 36 months.

Valsoia - down 2.0 percent - announced Tuesday that it has expanded its product portfolio by launching a chicken-flavored burger, on sale in large-scale retail and on the horeca channel.

Italian Exhibition Group--declining 4.8 percent after a profit of more than 10 percent at the close Tuesday--reported Tuesday that it posted a profit of EUR10.6 million in the first half of the year, an improvement from a loss of EUR5.6 million in the same period last year. Revenues amounted to EUR119.2 million up from EUR72.7 million in the first half of 2022.

Among the SMEs, Consob disclosed on Wednesday, as a result of its supervisory activities, the evolution of the shareholding structure of Visibilia Editore - up 7.3 percent - and the internal dealing operations carried out by Luca Giuseppe Reale Ruffino, chairman and CEO of Visibilia Editore itself and SIF Italia - down 0.7 percent - both listed on Euronext Growth Milan, until his death on August 5.

"In the absence of the party required to make the necessary disclosures, Consob has decided to make available some of the information acquired in the course of its supervisory action," the Italian markets regulator explained.

As of July 17, Ruffino held 1.7 million shares in Visibilia, which, when added to the 4.0 million shares held by SIF Italia, represent 71.3 percent of Visibilia Editore's share capital.

Estrima--down 9.4 percent--reported that the board of directors has resolved to assign CEO Matteo Maestri to manage and monitor the preparation of a new business plan to be presented by September 27, the date of approval of the first-half report.

In Asia, the Nikkei closed up 0.3 percent at 32,333.46, the Shanghai Composite finished fractionally in the green at 3,137.14, and the Hang Seng gave up 0.1 percent to 18,473.12.

In New York Tuesday evening, the Dow Jones closed up 0.9 percent to 34,852.67, the Nasdaq gained 1.7 percent to 13,943.76 and the S&P 500 rose 1.5 percent to 4,497.63.

Among currencies, the euro changed hands at USD1.0886 versus USD1.0854 in Tuesday's closing European equities while the pound was worth USD1.2662 from USD1.2624 Tuesday evening.

Among commodities, Brent crude is worth USD85.92 per barrel versus USD84.69 per barrel at Tuesday's close. Gold, on the other hand, trades at USD1,937.87 an ounce from USD1,937.10 an ounce Tuesday evening.

On Wednesday's economic calendar, from the US, at 1300, eyes on the 30-year mortgage rate and, at 1430 CEST, on Gross Domestic Product. At 1630 CEST, space on crude oil stocks, the Cushing inventory and the EIA report.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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