The strong rebound of the last session made it possible to close the stock market year with a little more optimism, but it was certainly not enough to make up for the losses accumulated during 2018.
What is about to end, for European stock exchanges, it was a real one annus horribilis characterized by the return of volatility and the loss of investor confidence in global equities. Profits taken after a 2017 to be framed for some, a bearish start for others.
There are several reasons for this trend, from the slowdown in growth to concern about international trade conflicts (read the USA and China (in primis)), passing through the Brexit bogeyman that is about to become a reality. Speaking of individual states, internal tensions have spared no one: Spain with Catalan excesses, the fall of Mariano Rajoy and the arrival of Pedro Sanchez to power; Germany with the difficulties of the CDU and the forthcoming withdrawal of Angela Markel, France with the yellow vest. And then of course there is Italy, queen of uncertainty in this 2018, first due to the post-election vicissitudes and then due to the absurd tug of war undertaken with the European Union on the manoeuvre, which ended only a few days ago with an agreement that for many had the flavor of surrender.
Phenomena that have had repercussions on the performance of Continental stock exchanges that closed 2018 with an irresistible result: vermilion red, with double-digit losses.
THE 2018 OF THE EUROPEAN STOCK EXCHANGES
Many will be surprised, but the scepter of "worst stock market of 2018" does not go to Piazza Affari. In fact, the worst performing among the European Stock Exchanges is recorded Frankfurt, with a drop of 18,2%. In second place, and perhaps it could not be otherwise, there is Milano with a red of 16,1%. Third step of the podium for Madrid with its -15,5%. Double-digit loss also for Paris which closed the year with -12,1%.
Outside the Eurozone the trail of intense red continues: -12,4% per London, -10,2% for Zurich which, paradoxically, wins the prize for "best European Stock Exchange" of the year.
2018 AT PIAZZA AFFARI
Let's take a closer look at the performance in Milan. Starting from the main index, as mentioned, the Ftse Eb left more than 16% of its value on the ground, dropping from 21.853 points at the beginning of the year to 18.324 as at 29 December 2018. A considerable drop if we take into account the fact that in 2017 the main stock exchange on Piazza Affari closed the year with an increase of 13,6%.
The other indices are even worse:
- Ftse Italia All-Share: -16,7%,
- Ftse Italia Mid Cap: -19,55%,
- Ftse Italia Small Cap:-25,39%
- Ftse Italy Star: -16,65%,
- Ftse Aim Italy: -twenty%.
Due to the decreases accumulated during 2018, the weight of Piazza Affari on the total Italian economy recorded a vertical drop. According to Borsa Italiana data (updated to December 21 in this case), the total capitalization of companies listed on Borsa Italiana markets is equal to 543 billion euros, a figure that represents a decrease of 15,7% compared to the 644,3 billion euros at the end of 2017.
In relation to the Gross Domestic Product, the capitalization of Piazza Affari is equal to 33,5% of GDP compared to 37,8% a year ago and 31,8% in 2016.
Returning to the companies, at the end of 2018 there are 357 companies listed on Borsa Italiana markets, 18 more than a year ago: 242 on the MTA (74 Star), 2 on the Miv and 113 on Aim Italia.
THE 2018 OF THE BLUE CHIPS: HERE ARE THE BEST TITLES
It is really difficult to find positive signs if you scroll through the list of Ftse Mib securities in 2018. Very strong sales have affected the vast majority of shares, with banks at the mercy of a real storm.
But let's start with the good news. The best performance of 2018 was recorded by the "king of defensive stocks": campari, which closed the year with an increase of 14,38%. Second place in the standings for a 90 piece of the caliber of Poste Italiane which closes 2018 with a nice +10,93%. In third place we find instead the fashion with Moncler (+10,3%), the only Italian stock to escape the rain of sales that hit the sector.
The other companies that managed to save themselves include: A2A (+2,12), Terna (+1,57%), FinecoBank (+2,28%), Unipolsai (+1,08%).
Before going on, however, a clarification is needed: within this mini-ranking we have not considered the performances of Juventus and Amplifon, i.e. the two freshmen of the Ftse Mib, enter the main list on December 27th. If we had, the gold medal would have gone to Juventus, that after the incredible ride of 2017 (+153%), continues to gallop, closing 2019 with an increase of 38,9%. Amplifon also did well: +8,3%.
STOCK EXCHANGE 2018: THE SALES STORM ON BLUE CHIPS
A very tough year for the other Italian blue chips, totally at the mercy of the political uncertainty that has gripped the country and the slowdown in Italian economic growth.
Impossible not to start from banks, victims of a real target shooting and also weighed down by the schizophrenic oscillations of the spread. Losses in the sector are all double-digit: Unicredit (-37%), Banca Generali (-35,05%), Ubi Banca (-31,18%), Intesa Sanpaolo (-30%), Banco Bpm (-25,22 .20,54%), Bper (-81,7%). Outside the Ftse Mib, Carige (-61,9%), MPs (-XNUMX%).
In red the Agnelli galaxy with Cnh taking home the biggest losses (-29,77%). FCA (-15,55%) and Exor (-7,4%) are also in strong red, with a limited decrease for Ferrari (-1,42%).
Contain losses le utility, with Enel closing the year losing 2,16% and Italgas losing 2,2%. Between oil Eni stable (-0,8%), a difficult year for Saipem (-14,7%) and Tenaris (-28,4%).
The fight between Elliott and Vivendi sends the title into deep red Telecom Italy (-33,24%), while the Hi-tech crisis hits Stm (-33,3%).
Among industrial Leonardo suffers (-22,68%), a loss of 31,64% for Atlantia which paid the price for the collapse of the Morandi Bridge and the Government's attacks on the subsidiary Autostrade. Worst stock of the Ftse Mib in 2018 is Azimut Holding, down by 40,3%, which at the very end of the year found itself facing a change at the top following the resignation of CEO, Sergio Albarelli.
The data are those published by the site the Italian Stock Exchange, updated at the end of the session of 28 December, the last of 2018.
