Mib down; Telecom Italia does worst of all

(Alliance News) - Piazza Affari opened the week down, with the blue chip index setting the point bar in the 33,300 area, in line with other European exchanges, as trading rooms moved cautiously ahead of the release of U.S. inflation data -- this time the CPI -- scheduled for Tuesday.

Meanwhile, markets now appear geared for the first rate cut by the European Central Bank to be made at its June meeting.

"About 95 basis points of rate cuts are expected by the end of the year, compared to our baseline forecast of 75 bp," she said. Lagarde commented that market expectations are converging better toward the ECB's views. Although the threshold for assessing a high probability of a maneuver in April is probably quite high, surprises in economic data can easily shift pricing forward," Nordea pointed out in a note.

In contrast, ABN AMRO appears to be more "generous" in its estimates, pointing out in a note, "Our base case scenario is that the ECB cuts rates by 25 bp in June, which is broadly in line with current market pricing. We believe that rate cuts of 25 bp will follow after that at each of the remaining policy meetings this year, for a total of 125 bp of rate cuts in 2024."

Thus, the FTSE Mib, closed down 0.3 percent at 33,315.07.

The Mid-Cap left 0.5 percent on the parterre at 46,194.45, the Small-Cap closed 0.6 percent in the red at 27,362.65, and the Italy Growth closed down 0.7 percent at 8,044.62.

In Europe, Paris' CAC 40 closed 0.1 percent in the red, London's FTSE 100, the only one in green, picked up 0.1 percent while Frankfurt's DAX 40 marked a 0.4 percent decline.

On the Mib, Telecom Italia closed at the bottom of the list down 4.6 percent after announcing on Monday a supplement to its press release and presentation of its business plan to 2026, specifying that pro-forma net debt net of estimated deleverage for the Netco deal of around EUR6.1 billion as of Dec. 31, 2023, is expected to be around EUR7.5 billion at the end of 2024.

This change is mainly attributable to an ordinary operating component-i.e., Ebitda net of investments, financial expenses, Net Working Capital performance, TIM Brasil minorities, and the taxes and other charges component-and an extraordinary operating component, i.e., impacts related to the Netco transaction such as separation costs, possible impacts from price adjustments, and additional items related to Net working Capital. Finally, regarding the 2025-2026 cash flows, the company specified that in 2025 Net cash flow is expected to be around zero and in 2026 around EUR500.0 million.

Nexi, on the other hand, gave up 3.6 percent, priced at EUR6.32 per share, after a 1.9 percent green on Friday evening. Of note, UBS cut its target price on the stock to EUR7.75 from EUR8.25 with a 'buy' recommendation.

Leonardo, on the other hand, left 4.1 percent on the parterre as it awaits the accounts due later in the day.

Among the bullish few, Banca BPER brought home a green of 2.1 percent with price at EUR3.88. The stock thus updated its new 52-week high at this new price level.

Also doing well was Moncler, which rallied 1.8 percent, on its fourth session with a bullish candle.

On the cadet segment, Fincantieri closed ahead more than 11 percent after announcing Thursday that it had improved its 2023 loss to EUR53 million from a loss of EUR324 million as of Dec. 31, 2022. Revenues in the period stood at EUR7.65 billion from EUR7.44 billion in 2022.

Acea took home 5.2 percent, with price at EUR15.72 and updating its 52-week high at EUR15.73.

Maire Tecnimont advanced 0.6 percent, breaking a seven-session downtrend. In recent days, it announced that Tecnimont has been awarded through tender by Sonatrach an Engineering, Procurement, Construction and Commissioning contract for a new linear alkyl benzene sulfonate plant in the Skikda industrial zone, 350 kilometers east of Algiers. The value of the contract is approximately USD1.1 billion

Technoprobe, on the other hand, left 5.6 percent on the parterre, in its sixth bearish session.

Ascopiave, on the other hand, retreated 3.6 percent, following the 1.4 percent red of the previous session, after two positive sessions following the release of good accounts for 2023.

Among the smallcaps, Somec gave up 23 percent after it announced that it had reviewed its pre-closing data for fiscal year 2023 and, as a result, revised downward its expectations for 2023, published last September. Specifically, the company now expects Ebitda to be below the minimum value in the previously disclosed range by about 25 percent. Net financial position, on the other hand, will be above the maximum value expected from the range by about 20 percent.

Bastogi, on the other hand, gave up 9.6 percent, racking up its fifth session in a row with a bearish candle.

Landi Renzo closed on a negative note with a minus 5.9%, following up on the previous two sessions in the red.

Safilo Group gave up 2 percent after it announced that it has renewed its global license agreement with Missoni for Missoni-branded eyewear until the end of 2029.

Among SMEs, Allcore closed bullish by 4.1% at EUR1.77 per share, rebounding after six bearish sessions.

Ancher strength on Destination Italia, which closed up 3.9%, breaking a five-session bearish trend.

Pasquarelli Auto closed down 0.2 percent. The company said it signed an agreement on Friday to lease a business unit of Giansante Auto, a dealership for the Fiat, Abarth, Lancia and Fiat Professional brands for the provinces of Chieti and Pescara, as well as a retailer of used cars, founded in 1949.

In 2022 Giansante Auto had revenues of about EUR24.3 million, a negative EBITDA of about EUR1.1 million and a loss of about EUR1.4 million. In 2023, the company activated the negotiated settlement procedure for business crisis resolution. The transaction is aimed at the possible future purchase of Giansante Auto. The rent for the business unit is set at EUR10,000 monthly.

Caribbean Company, on the other hand, gave up more than 14 percent, in its third session at a loss and closing out the segment.

In New York, the Dow moves just below par, the Nasdaq gives up 0.2 percent, while the S&P 500 is also posting a 0.2 percent loss.

Among currencies, the euro changes hands at USD1.0925 against USD1.0948 recorded at Friday's European stock close, while the pound is worth USD1.2807 from USD1.2860 on Friday evening.

Brent crude is worth USD82.45 per barrel versus USD81.76 per barrel at Friday's close. Gold, on the other hand, trades at USD2,181.00 an ounce from USD2,181.30 an ounce Friday night.

Tuesday's macroeconomic calendar includes, at 0800 CET, the British unemployment rate while from Germany will come inflation. At 1110 CET, a 12-month Italian BOT auction will be held in Italy while at 1200 CET the OPEC monthly report will be released.

From the US - at 1330 CET -, the inflation figure will be published while in the evening, at 2230 CET, it will be the turn of the publication of the weekly oil stocks report.

On the corporate calendar - among the many results coming in - are those of Alerion, Caltagirone, ERG, FinecoBank, ItalGas, Saipem, Tod's and WIIT.

By Maurizio Carta, Alliance News reporter

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