On 29 December, the international lists concluded their last session of 2017, officially ending the scholarship year. 12 months in which the Milan Stock Exchange has finally raised its head, first catching up and then exceeding the coveted psychological threshold of 20 thousand points on the Ftse Mib.
Although the all-time highs reached in 2007 are still far away, we can say that the year that is about to end has decreed the rebirth of Piazza Affari, which has formally put the losses incurred during the great financial crisis behind it.
All the indexes that make up the Milan Stock Exchange have recorded double-digit increases, driven by a favorable economic situation and the positive news that characterized 2017. First of all the debut of PIR, which allowed the indexes listed on the MTA, primarily Ftse Italia Star but also the Ftse AIM Italia (index of shares listed on the AIM), to literally take flight, attracting the interest of new institutional and professional investors, with positive effects on liquidity and volumes.
But if the little ones galloped, the Ftse Mib did not disfigure, gaining 13,6% from the first session in January to the last one in December (the 10,2 budget was -2016%), dominated by the securities of the FCA galaxy and by Stmicroelectronics which continues its stock market "grace period" which has lasted for the past two years. The banks are also recovering (FTSE Italia Banks +13,67%) led by Finecobank, which in 2016 recorded an increase of more than 60%. The European price lists were also positive with Frankfurt +11%, Paris +9,2% and London +7,6%.
STOCK EXCHANGE: FCA IS THE BEST IN THE FTSE MIB
It is the greatest, the most significant, the one that collects inside the securities of the 40 Italian companies listed on the MTA with the greatest capitalisation, free float and liquidity. Although the last few sessions have been characterized by a general weakness caused by the strengthening of the euro, which has reached its highest level in three months, in 2017 the Ftse Mib scored the best performance among the most important European price lists, passing Frankfurt, Paris, London, Madrid and Zurich. Capitalization grew by 22% to 644,3 billion, an increase of 22,7% compared to the 524,9 billion communicated at the end of 2016. The capitalization of Piazza Affari - indicates the annual Review of Borsa Italiana - is now equal to 37,8% of GDP, against 31,8% a year ago and 34,8% in 2015.
A year, therefore, to be framed after a difficult 2016 and a decade in which the main Italian price list wore the black jersey for performance among the 20 main world markets.
The Lingotto stocks took the hand and guided the increases in the basket during the year. FCA takes first place in the ranking of the best shares of the Ftse Mib in 2017, gaining over 12% in the last 73,5 months and also driving Exor (+24,78) and Cnh Industrial (+ 35,47%).
It deserves a separate chapter Ferrari which in the last year marked an increase of 58,02% placing fourth in the overall standings. Since its debut on 4 January 2016, the stock has doubled its stock market value, rising from 43,6 to 87,45 euros after reaching a maximum of 105,3 euros on 2 November.
On the second step of the podium among the titles of the Ftse Mib we find instead Stmicroelectronics, with an increase of 70,1% following the +71% achieved in 2016. Finecobank (+60,1% and third place) and Moncler (+58,8%). Among the banks, Ubi Banca also stands out (+46,73%), rising from 2,48 to 3,646 euros.
As mentioned, the banking sector was positive which despite the various dossiers that emerged during the year, also benefited from the Quantitative Easing wanted by the number one of the ECB, Mario Draghi. Bad oil (Eni -10,57%, Tenaris -22,58%) who paid dearly for the international crisis in the sector and the collapse in prices that characterized 2017. Enel, the stock with the highest capitalization of the Ftse Mib, closed the year with a nice +23%.
And the worst? The black jersey of 2017 among the blue chips goes to another oil stock: Saipem (-28,5%). Leonardo follows (-25,2%), which was affected by the downward revision of the guidance due to the difficulties in the helicopter sector. Among the worst there is also Mediaset (-21,5%), weighed down by the Premium-Vivendi affair which, however, seems to be resolved.
THE OTHER INDICES OF THE ITALIAN STOCK EXCHANGE
Taking stock of what 2017 was from a stock market point of view, it is impossible to overlook the performance of the other indices that make up the MTA, but also of the FTSE AIM Italia.
In fact, it is he who is leading the increases in the Milan Stock Exchange Star which during the year gained more than 35,58%, after the +4,2% recorded in 2016. The index also rose sharply mid cap (+32,97%) and that of Small Cap (+28,52%). well theAllShare which recovered the losses of the previous year (-9,9%), ending 2017 at a share of +15,61%. Outside the MTA, the Ftse Aim Italy rose by 23,33% in 12 months (-16% in 2016).
But what is the cause of this "state of grace"? From this point of view, it cannot be ignored that 2017 was the year of the debut of the PIndividual Savings Plans (Pir). In fact, the above indices include companies with capitalization between 40 million and 1 billion euros (Ftse Italia Star), the 60 companies with the largest stock market capitalization among those not belonging to the main list (i.e. those that make up the Mid Cap), SMEs with high growth potential (in the Ftse Aim Italia) and so on. All realities that, on balance, they represent the investment basin of the PIRs.
Taking as an example AIM Italia, 2017 was the year of change: 24 IPOs (of which 8 SPACs) against 11 in 2016, 1,26 billion in equity raised following placements and an average free float of IPOs – excluding SPACs – at 26%. At a general level, the market of Italian small and medium enterprises at the end of the year, it counts 95 companies and a total capitalization of 5,7 billion, a figure that represents almost double compared to the end of 2016.
Another example is also the Ftse Italia PIR Mid Cap Total Return recorded an increase of +35,4%.
STOCK EXCHANGE: THE BEST STOCKS OF 2017
Taking into consideration all the stocks that make up the various indices of the Milan Stock Exchange, the best stock of 2017 was Synthesis. LThe company active in the Private Equity, Real Estate and Long Term sectors gained 746% in just one year.
An incredible year for shares that have traveled to record levels. It should be emphasized that in the month of January alone, the stock achieved a performance of over 1000%, then losing share over the following months. However, two things must be taken into consideration regarding Sintesi's performance: it is “very small” and belongs to the Consob blacklist, characteristics which are often the basis of very strong increases and equally strong decreases.
In second place in the ranking of the best performances of the Italian Stock Exchange there Landi renzo, a world leader in the sector of components and fuel systems for LPG and methane, which from January to December recorded an increase of more than 353%. Third step of the podium for the title of the Group active in the industrial automation Gefran (+ 246%).
In the classification of the best, in sixth place (after Carraro in fourth and Tas in fifth) we find Fincantieri. A Guinness record performance for such a "heavy" title that closed 2017 with a resounding +166,4%. The positive outcome of the Stx affair undoubtedly drove the purchases. After a push and pull that lasted months and characterized by hard frictions between Italy and France, the Italian giant has in fact managed to obtain 51% of the Saint Nazaire shipyards, 50% in direct control and a 1% stake on loan from the French government, de facto conquering the much coveted majority of Stx.
Seventh place for Juventus (+153%), best among the football stocks listed on Piazza Affari, eighth for Astm (+133,5%). They close the overall Top Ten Falck Renewables (+ 133,1%) and Whitehand (+ 131,1%).
THE WORST TITLES OF 2017
Worst title of 2017 is Netweek which in the last 12 months has lost 80,1% of its value. Very difficult year even for Banca Carige (-70,2%), still under the magnifying glass of the ECB despite a capital increase of 560 million euros.
Still worth noting: -67,7% for Trevi, -67,4% for Creval. Last 19 December, the extraordinary shareholders' meeting of Credito Valtellinese gave the go-ahead for a capital increase of 700 million euro, an amount monstre if we take into account the fact that the bank's current capitalization is equal to 138 million euros. -66,1% for Intermobiliare Bank.
In seventh place among the worst there is Astaldi (-60,23%) after the write-down of receivables from Venezuela and the communication of the capital strengthening programme. The financial crisis and the legal vicissitudes experienced during 2017 weighed down the actions of the Sun 24 Hours which is in ninth place (in seventh Cti Biopharma -42,8%, in eighth esprinet -41,79%), losing a total of 41,2%. Closes the top ten of the worst sapphire (-39%).
