Purchases on Mib; banks act as drivers

(Alliance News) - Mid-session Tuesday, on the first trading day of 2024, the Mib remained bullish, settling in the 30,700 area, touching new highs since 2008, driven by growing optimism about more accommodative monetary policy expected from major central banks.

Within the domestic walls, the HCOB PMI index released Tuesday by S&P on the Italian manufacturing sector registered a reading of 45.3 in December, an improvement from November's 44.4, signaling the ninth consecutive monthly contraction. The figure is in line with estimates. The latest deterioration in business conditions, while remaining generally high, was the least pronounced in the past three months.

The sharp contraction in the final month of 2023 was most attributed to declines in production and new orders, which in both cases was the ninth consecutive month-on-month decline. Companies linked the significant drop in new orders to the current weakness in domestic and foreign demand.

Thus, the FTSE Mib, marks a 1.2 percent rise to 30,710.36.

In Europe, London's FTSE 100 is giving up 0.1 percent, Paris' CAC 40 is advancing with 0.2 percent, and Frankfurt's DAX 40 is marking plus 0.4 percent.

Among the smaller lists, the Mid-Cap is advancing with 0.4 percent to 44,698.35, the Small-Cap is marking a green of 0.3 percent to 28,416.03, and Italy Growth is gaining 0.5 percent to 8,349.43.

On the Mib, Banca Monte dei Paschi advances with 4.8 percent bringing the price to EUR3.19 after two sessions closed down.

BPER Banca also does well, advancing 3.7% after the fractional green with which it closed Friday's session.

Enel - up 0.4 percent - on Friday announced that through its wholly owned subsidiary Enel Green Power Spa, it has finalized the sale of 50 percent of Enel Green Power Hellas, EGP's wholly owned renewable subsidiary in Greece, to Macquarie Asset Management, acting through Macquarie Green Investment Group Renewable Energy Fund 2. Thus, EGP received total consideration of about EUR350 million, equivalent to an enterprise value, on a 100% basis, of about EUR980 million.

Leonardo is also off to a good start, marking a plus 1.6 percent at EUR15.50 per share. The stock updated its 52-week high at EUR15.45 per share.

Saipem, on the other hand, advances 2.2 percent, rearing its head again after Friday night's 0.3 percent red.

Parent company Eni, on the other hand, marks a plus 1.6 percent, rearing its head after two bearish sessions.

Among the very few bearish performers is Campari, which gives up 1.0% in position for the third session to close with a bearish candle.

On the Mid-Cap, d'Amico advances 2.7% to EUR5.80, turning upward after three bearish sessions.

Buzzi is picking up 1.8%, after two sessions ended in the red.

High quarters also for Maire Tecnimont, which scores a plus 1.8% with price at EUR4.99, with equities stroking a 52-week high at EUR5.05.

Technogym -- up 0.4 percent -- on Monday announced that it had purchased -- in the period between Dec. 27 and Dec. 29 -- a total number of 41,000 treasury shares. The daily weighted average price amounted to EUR9.13 per share for a total value of approximately EUR375,000.

MFE-MediaForEurope also opened in good shape. As it wrote in a note Friday, 2023 was a record year for Mediaset ratings. As the company reports, "despite not being among its listening targets, Mediaset steadily surpasses its public competitor on all Italians considering the full year and all events. Auditel certifies this by recording the steady increase in the audience of Mediaset networks in all the main programming slots. A historic result." Class-A stocks opened in the green by 0.3 percent, while Class-B stocks marked a plus 1.7 percent.

On the Small-Cap, Trevi Finanziaria Industriale advanced 9.4 percent, following a 2.5 percent loss Friday night. The stock had previously come off two bullish sessions in which it rallied an aggregate of more than 28 percent. Of note, the company recently announced that it has extended the 2022-2026 business plan by another year, to 2027.

Targets remain confirmed, which include an average annual revenue growth of 5 percent over the plan period, a recurring Ebitda margin of over 13 percent at the end of the plan from the 12 percent expected this year, and increasing cash generation thanks to the positive contribution of both business divisions, favoring the achievement of the ratio of Net Financial Position to recurring Ebitda at a level of less than 2 times, as early as the end of 2026.

Mondo TV, on the other hand, rises 6.1%, with new price at EUR0.3150, pointing the beacons toward the third session to close on the bullish side.

PLC -- up 6.2 percent -- on Tuesday announced that it had granted Hitachi Zosen Inova AG an exclusive until Jan. 31, 2024, to negotiate the purchase and sale of the entire stake -- equal to 51 percent of the entire share capital -- held by PLC in Schmack Biogas S.r.l.

HZI has submitted an offer that considers the value in terms of enterprise value referring to 100% of the share capital of Schmack Biogas S.r.l. and its subsidiaries to be more than EUR19 million, with a price adjustment mechanism typical for this type of transaction.

At the tail end we see CSP International is giving up 3.5 percent to EUR0.3060, after last session's 2.9 percent green.

Among the SMBs, Finanza.tech is posting a green of over 10%, rebounding after six sessions of declines.

Altea Green Power is advancing more than 8.8 percent, following Friday night's 4.2 percent decline. The stock had previously come off six bullish sessions.

Erredue, on the other hand, rises 4.4 percent, in its fifth bullish session.

On a negative note, Cloudia Research contracted 5.7 percent to EUR5.35 per share, following up its previous two bearish sessions.

G Rent, on the other hand, is giving up 4.1 percent, in profit taking after four consecutive up sessions.

In New York on Friday evening, the Dow closed down 0.1 percent, the Nasdaq gave up 0.6 percent, and the S&P 500 left 0.3 percent on the parterre.

Among currencies, the euro changed hands at USD1.1033 against USD1.1054 recorded in Friday's European equities close while the pound was worth USD1.2735 from USD1.2738 on Friday evening.

Brent crude is worth USD78.34 per barrel versus USD77.64 per barrel at Friday's close. Gold, on the other hand, trades at USD2,073.38 an ounce from USD2,076.30 an ounce Friday night.

On Tuesday's macroeconomic calendar, overseas, at 1545 CET, it is the turn of the US manufacturing purchasing managers' index. At 1600 CET, the data on construction spending is released.

On the bond front, at 1455 CET, three-, six- and 12-month French BTF auctions are published in France. From the U.S., at 1730 CET, it is the turn of Treasury bond auctions with three- and six-month maturities.

By Maurizio Carta, Alliance News reporter

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