Mib closes in the red; Brent recovers share

(Alliance News) - Piazza Affari closes the day lower Monday, while at the same time U.S. stock markets begin the penultimate week of the year higher. Brent gains altitude after attacks by Houthi militants on commercial ships in Yemen intensified over the weekend, prompting major shipping companies to avoid the Suez Canal.

According to IG analyst Axel Rudolph, "After seven consecutive weekly gains, U.S. equity indices--amid low yields and a falling greenback--continue to rise on the back of a pickup in U.S. manufacturing sentiment. The FTSE 100 is the only major European stock index to remain in the green, benefiting from the rapid rise in oil and gas prices due to the intensification of Houthi military attacks against commercial vessels over the weekend."

"These attacks," Rudolph continues, "prompted major shipping companies to halt shipments through the Suez Canal and the Red Sea and led to a 3 percent surge in oil prices and an 8 percent increase in Dutch TTF natural gas. Germany's ifo economic sentiment, unexpectedly falling to three-month lows, helped push European indexes lower as recession fears resurfaced in the region."

As a result, the FTSE Mib closed 0.4 percent in the red at 30,241.02, the Mid-Cap gave up 1.0 percent to 43,420.96, the Small-Cap lost 0.9 percent to 26,884.92, and Italy Growth is in the green by 0.2 percent.

In Europe, London's FTSE 100 closed up 0.5%, Paris' CAC 40 in the red 0.4% and Frankfurt's DAX 40 lost 0.6%.

On the Mib, Iliad's new bid for Vodafone Italia officially opened the long-awaited consolidation of tlc in Italy and caught TIM in the middle of the network merger. The French value the British operator EUR10.45 billion, and stocks soar. Telecom Italia then closes up 4.5 percent.

Other bullish few include UniCredit, Eni, Tenaris and Banco BPM, which all close up between 1.8% and 0.9%.

Leonardo -- in the red by 1.5 percent -- announced Monday that Southwest Airlines, among the largest airlines in the U.S. with about 127 million passengers carried annually, has chosen it to redefine the transit area baggage handling system at Denver International Airport.

The contract, worth more than EUR25 million, includes a custom-developed solution for Southwest to better manage operational, manual baggage handling and transfer activities.

DiaSorin gives up 1.9% after opening down 5.0%. Of note, Jefferies cut its target price to EUR98.00 from EUR102.00. One share is now worth EUR90.08.

In the new business plan announced on Friday, the company expects, at constant exchange rates, revenues to grow by 5% in 2024 and 7% compared to the pre-pandemic period. During Covid, the statement said, revenues had been around EUR30 million. In the three-year period to 2027, the company expects single-digit CAGR growth.

Adjusted Ebitda margin to 2024 is expected to grow 32%-33% and to 2027 to grow 36%-37%.

The drivers of growth, the company writes, will be immunodiagnostics, molecular diagnostics, licensed technologies, and the progression of deleverage that will enable "funding of new growth opportunities.

At the bottom is Ferrari, in the red by 3.4 percent.

Of note is the debut of Brunello Cucinelli on the Mib, with the stock down 1.1 percent as at the start. The stock takes the place of CNH Industrial, which will remain listed only in New York.

On the Mid-Cap, Industrie De Nora -- up 1.6 percent -- and H2U Technologies, a developer of next-generation electrolyzers, announced Monday a research agreement to identify and develop low-cost, high-performance electro-catalysts for the production of hydrogen by water electrolysis.

Fincantieri closes 1.3 percent in the red. It reported Friday that Vard--Norwegian subsidiary--has signed an agreement with an international customer to build a cable-laying ship. Delivery is scheduled for the fourth quarter of 2026.

The value of the contract is between EUR200 and EUR250 million.

The Piaggio group -- in the red by 0.7 percent -- on Friday presented its "Decarbonization Plan," in which it pledges to implement concrete actions to contribute to the achievement of climate goals set by the European Union.

In continuity with the path taken so far, the Piaggio group's plan, developed with advice from the European Investment Bank, in line with the EIB PATH framework and the support of the consulting firm EY - contracted by the EIB - will allow the group to articulate actions to reduce Scope 1, 2 and 3 emissions over two time horizons: 2030 and 2050.

Among the small-cap companies, Antares Vision closed up 6.6 percent and did better than most. The company announced Monday that it has appointed Jeremy Coote as the new chief executive officer of its subsidiary rfxcel.

Coote will replace resigning Glenn Abood, who holds 668,198 shares in Antares Vision. Coote joined ACSIS in 2010 as a board member and was appointed CEO in 2014. He has been a proponent of ACSIS' leadership in supply-chain ecosystem software. He has more than 25 years of experience as a recognized leader in ERP and supply-chain software; previously, he was president of SAP North America.

In addition, the company has also appointed Stephanie Sebile as rfxcel's new chief administrative officer and treasurer.

algoWatt gives up 1.1 percent after reporting that the board of directors has analyzed the possible impacts on the group's operations from the heightened state of financial strain as a direct result of the decision taken by a financial creditor to temporarily suspend the company's invoice advance line of credit.

This temporary suspension, motivated by the need to determine the company's creditworthiness as a result of the filing of the negotiated settlement procedure, could have an impact on the regularity of payroll payments to employees.

Digital Bros advances 2.2 percent while Mondo TV closed 1.2 percent in the red. The company reported Monday that its subsidiary Mondo TV France--in the red by 4.0 percent on Italy Growth--announced the closing of a major agreement with Giochi Preziosi, Europe's leading toy manufacturer and distributor.

The contract, with a duration of three years until December 31, 2026, includes the development and distribution of the toy line in Italy and the right of first option to extend the license worldwide, in the markets where the series will be distributed.

Among SMEs, Radici Pietro Industries & Brands closed in the green by 3.6 percent after reporting Monday that it will close 2023 with revenues of EUR56 million, according to preliminary estimates reviewed by the board.

The figure is lower than the previously expected EUR59.7 million but is 4.6 percent higher than the 2022 figure.

ICF Group ended the day up 11 percent followed by Eprcomunication, in the green by 10 percent.

In New York, the Dow is up 0.1 percent, the Nasdaq dale 0.4 percent and the S&P 500 advances 0.5 percent.

Among currencies, the euro changes hands at USD1.0920 against USD1.0909 recorded at Friday's European stock close while the pound is worth USD1.2643 from USD1.2715 on Friday evening.

Brent crude is worth USD78.45 per barrel versus USD76.29 per barrel at Friday's close. Gold, on the other hand, trades at USD2,023.93 an ounce from USD2,048.85 an ounce Friday night.

Tuesday's macroeconomic calendar includes, at 0330 CET, the BoJ's monetary policy statement and, at 1000 CET, the Eurozone consumer price index.

At 1430 CET, from the U.S., building permits and new residential construction will come out.

At the same time, from Canada, will come the annual CPI, raw material price index and industrial goods price index.

At Piazza Affari, Sesa's half-year results are expected.

By Chiara Bruschi, Alliance News reporter

Comments and questions to [e-mail]

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