Mib bearish in 31,100 area; Saipem stays afloat

(Alliance News) - On Tuesday, the Mib closed lower, bringing the point bar to the 31,100 area, following the global decline in equity markets after U.S. inflation came in higher than expected, reducing speculation about an imminent rate cut by the Fed.

In the CME Group platform's FedWatch Tool, using futures also based on the actual federal funds rate, or EFFR, the rate confirmation in the March 20 meeting has a 95 percent probability for confirmation range 525/550 bps. The 25 bps drop in the 500/525 bps target is thus priced at 5 percent, down from 15 percent in this morning's previous survey.

The annual U.S. inflation rate-released Tuesday-slowed to 3.1 percent in January, after a brief increase to 3.4 percent in December, but was higher than the 2.9 percent expected by analysts.

Thus, the FTSE Mib closed 1.0% in the red at 31,134.17, the Mid-Cap gave up 1.0% to 45,102.05, the Small-Cap left 0.3% at 27,434.64, and Italy Growth closed 0.4% in the red at 8,090.31.

In Europe, Paris' CAC 40 closed in the red by 0.9 percent as did London's FTSE 100, while Frankfurt's DAX 40 closed in the red by 0.9 percent.

On the Mib, good trades for Saipem, which closed up 1.6 percent with new price at EUR1.35 per share. Of note, PDT Partners cut its short on the stock to 0.46 percent from 0.59 percent previously.

Pirelli & C, on the other hand, marks a green of 1.5 percent with new price at EUR5.46 per share. The stock on an intraday basis during the session updated its 52-week high to EUR5.53.

Banco BPM, on the other hand, gave up 3.9 percent, the subject of profit-taking after four bullish sessions on the strength of good accounts. Indeed, on Thursday it reported that it ended 2023 with a net profit of EUR1.26 billion, up 85 percent from EUR685.0 million a year earlier. In the fourth quarter alone, the bank posted a net income of EUR321.1 million, which compares with EUR319.0 million in the previous quarter. Net interest income rose to EUR3.29 billion from EUR2.31 billion a year earlier while, in the fourth quarter alone, it touched EUR867.7 million, stable on a sequential basis.

The credit institution's CET 1 ratio is 14.2 percent and compares with 12.8 percent as of Dec. 31, 2022.

FinecoBank, on the other hand, left 3.1 percent to EUR12.73 on the parterre after 1.9 percent green on the eve of the meeting.

On the cadet segment, it led Intercos Group, which rose 5.1 percent to EUR15.24 after 0.6 percent green in the previous session.

Industrie de Nora picked up 3.7 percent after 1.4 percent green on eve. Citadel Advisors cut its short on the stock to 0.67 percent from 0.79 percent previously.

Saras closed 0.7 percent in the red after it reported that Massimo Moratti Sapa's Angel Capital Management Spa and Stella Holding Spa and Vitol BV, a Dutch company, entered into a sale and purchase agreement under which the Moratti family agreed to sell shares in Saras representing about 35 percent of the company's share capital to Vitol at a price of EUR1.75 per share. The price per share implies a capitalization of Saras around EUR1.7 billion.

Technoprobe, on the other hand, left 5.1 percent on the ground after a 0.3 percent green in the previous session.

Among smallcaps, CIR closed bullish by 4.4 percent at EUR0.4485 per share, with the company continuing with its buyback program. Most recently, it announced Monday that it had bought back its own ordinary shares - between February 5 and 9 - for a total value of EUR254,000 or so.

Alkemy closed bullish by 4.3 percent, after a 0.6 percent gain in the previous session.

Fidia, on the other hand, gave up 7.2% to EUR0.3340, in its fifth bearish session.

Banca Sistema left 1.3% on the parterre. The board of directors on Friday approved the consolidated financial statements as of Dec. 31, which closed with a net profit of EUR16.5 million compared to EUR22.0 million in 2022. Net interest income, at EUR67.0 million, is down 22 percent year-on-year.

Among SMEs, Alfonsino rose 5.6 percent after announcing Tuesday the completion of the process of integrating the proprietary Rushers platform within its business model.

High quarters also for AATech, which advanced 8.3 percent, with price at EUR1.30 per share, in its third session with a bullish candle.

Eprcommunication, on the other hand, gave up 7.9 percent to EUR1.75 per share, on its ninth bearish session.

Caribbean Company contracted 3.6 percent, following a 1.1 percent green in the previous session.

In New York, the Dow is giving up 1.1 percent, the Nasdaq is stepping back 1.2 percent, and the S&P 500 is giving up 1.0 percent.

Among currencies, the euro is changing hands at USD1.0716 against USD1.0776 recorded in Monday's European stock close, while the pound is worth USD1.2601 from USD1.2628 on Monday evening.

Brent crude is worth USD82.77 per barrel versus USD81.73 per barrel at Monday's close. Gold, meanwhile, trades at USD1,994.39 an ounce from USD2,016.30 an ounce last night.

Wednesday's calendar includes, at 0800 CET, British inflation while, at 1100 CET, for the Eurozone, the industrial production figure and Gross Domestic Product will be released.

At 1300 CET, from the U.S. will come the mortgage market report, while at 1630 CET the crude oil stocks figure and the EIA report will be released.

On the corporate calendar, results from EdiliziAcrobatica, eVISO, FOS, Gefran, Interpump, Svas Biosana and Telecom Italia are expected.

By Maurizio Carta, Alliance News reporter

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