Mib rises to 28,200; oil segment bullish driver

(Alliance News) - The Mib index proceeded upward for the fifth consecutive session Friday, trading around one-and-a-half-year highs above the 28,200 area and outperforming other European financial markets.

Among the day's macro data, ahead of the Fed's preferred inflation figure this afternoon--the PCE Core--the eurozone's annual inflation rate slowed to a faster-than-expected pace in June, according to Eurostat's estimate released Friday. The single currency area's annual inflation rate slowed to 5.5 percent in June from 6.1 percent in May. It was expected to slow to 5.6 percent, according to the consensus cited by FXStreet, thus falling beyond estimates.

However, core inflation, which excludes items such as food, energy, alcohol and tobacco, accelerated, with the annual core inflation rate rising slightly to 5.4 percent in June from 5.3 percent in May. The figure was below market estimates of 5.5 percent.

Thus, the FTSE Mib marks a 1.1 percent rise to 28,226.95 with put/call ratio at 1.3.

In Europe, London's FTSE 100 advances 0.6 percent, while Paris' CAC 40 is up 0.9 percent as is Frankfurt's DAX 40.

Among the smaller listings, the Mid-Cap is up 0.6 percent to 42,654.41, the Small-Cap is in the green 0.4 percent to 26,935.16, while Italy Growth is in the red 0.1 percent to 9,063.64.

On the main index in Piazza Affari, the oil sector is the driver, with signs of tightening global supply outweighing concerns about demand. Official data showed U.S. crude inventories fell by 9.6 million barrels last week, exceeding market expectations of a drawdown of 1.8 million barrels. This comes as Saudi Arabia's plans to reduce production by an additional 1 million barrels per day will start soon, complementing the previous OPEC+ agreement to limit supply until 2024.

Tenaris, thus advances 2.1% to EUR13.63, looking for its sixth session on the bullish side.

Eni, on the other hand, advances 1.9%, with new price at EUR13.12 per share. On the stock it is mentioned that Goldman Sachs saw downward to the target price to EUR17.00 from EUR18.00.

ERG - best of the list up 2.9 percent - signed Thursday, through its subsidiary ERG Power Generation Spa, an agreement with Achernar Assets AG, a Swiss investment holding company, to sell the entire capital of ERG Power Srl, owner of the environmentally friendly and highly efficient natural gas-fired Combined Cycle Gas Turbine cogeneration power plant in Priolo Gargallo (Syracuse).

Also advancing well is CNH Industrial -- up 1.0 percent -- which reported that it purchased 1.3 million of its own ordinary shares between June 20 and June 27. The shares were taken over at an average unit price of EUR12.90 or so, for a total value of EUR17.9 million.

Among the few bearish, narrow minority on the list, Moncler is stepping back 0.3 percent to EUR62.66. During the week Goldman Sachs cut its target price to EUR71.10 from EUR72.00.

FinecoBank, on the other hand, gives up 0.2 percent, with the stock still slightly up on the weekly time frame.

On the cadet segment, Webuild confirms the strength it has shown since the bell rang, advancing 2.3% to EUR1.7250, with the company continuing its buyback program.

It does even better Maire Tecnimont, which picks up 2.5 percent and bringing the weekly up 6.4 percent.

Good buys also on Mondadori Editore, which advances 1.9% to EUR2.03 per share. The board of directors of Arnoldo Mondadori Editore Spa on Thursday examined and defined - in light of the more favorable development compared to previous estimates with regard to both the business and the prices of the main inputs - the upward revision of the targets for fiscal year 2023.

In detail, the company confirmed single-digit revenue growth, adjusted Ebitda is expected to increase high single-digit/low double-digit compared to the previous single-digit estimate, with margins expected to be between 16 percent and 17 percent from the previous 15 percent, and net income is expected to grow by about 20 percent, an estimate doubled from the previous one, due to both operational improvement and the effects of the sale of the stake in Il Giornale.

Among the few bearish performers, the tail end is for Caltagirone, which trades at minus 2.3 percent. The stock since the beginning of the year shows an asset of almost 25 percent.

On the SmallCap segment, Triboo is giving up 4.4 percent to EUR0.9220, after the previous two bullish sessions.

Giglio Group, on the other hand, retreats 4.1 percent to EUR0.7100, in position for the third session to end among the bearish.

Borgosesia, on the other hand, advances 1.1 percent, after announcing Friday that it has finalized the EUR17.5 million purchase of Hybrid Tower Mestre, a skyscraper built on the areas of the former depot of public transport company ACTV.

Restart, on the other hand, advances 4.8 percent, reversing a five-session downtrend.

Netweek advances 1.7 percent to EUR0.36, following up on its double-digit rise on the eve of the day and which recently proceeded with a share grouping transaction.

Rear-ends also for Olidata, which scores a minus 0.6 percent. The company announced Wednesday that board members have resigned following the change of control that took place with the entry of the Rufini family.

Among SMBs, GM Leather advances 6.1 percent, positioning itself for the 13th session to conclude in a positive balance.

ISCC Fintech advances 2.2% to EUR3.78 per share, positioning itself for the seventh session to end on the upside.

Pharmacosmo, on the other hand, gives up 5.9 percent. High trading volume of more than 241,000 is recorded on the stock, compared to a three-month daily average of pco less than 87,000.

High Quality Foood, on the other hand, gives up 2.9 percent, positioning itself for the third session to end in the red.

In New York on the European night, the Dow closed in the green by 0.8 percent, the Nasdaq in perfect parity, while the S&P 500 closed up 0.5 percent.

Among currencies, the euro changed hands at USD1.0844 against USD1.0883 on Thursday's European stock close. In contrast, the pound is worth USD1.2625 from USD1.2611 last night.

Among commodities, Brent crude is worth USD74.86 per barrel versus USD73.78 per barrel at Thursday's close. Gold, on the other hand, trades at USD1,904.03 an ounce from USD1,918.85 an ounce Wednesday night.

On Friday's economic calendar, overseas, personal income data, personal spending data and the PCE index from the United States arrive at 1430 CEST.

By Maurizio Carta, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2023 Alliance News IS Italian Service Ltd. All rights reserved.