MILAN STOCK SLOWS DOWN AFTER RECOVERY. THE ECB'S NETWORK ONLY WORKS FOR BANKS
Starting off very sharply, the Milan Stock Exchange slowed down significantly in mid-morning and slipped into negative territory (-0,30, Ftse/Mib index at 16.669) on a par with the other European Stock Exchanges. The recovery of financial stocks continues, and in particular of banks, but stocks of more cyclical sectors such as industrial and tech are down, affected by the fear of a sharp slowdown in economic growth, or even a new recession.
In Milan, the FtseMib index rises by 0,5% (in the initial stages, the rise had exceeded 4%), while London falls by 1%, Paris falls by 1,2% and Frankfurt is down by 1,8%.
In Europe, the banking sector gains 1,4% (Stoxx index) and insurance companies rise by 0,4%.
In Milan, the banks significantly reduced their initial earnings: Banco Popolare advanced by 2,5% after a temporary suspension due to excessive increases, Intesa Sanpaolo DELL by 1,7%, Unicredit +2,3%, Monte Paschi +6%. Pop Milano advances by 2,8%. Mediobanca earns 1,4%.
Generali, after the quarterly accounts, increases by 0,9%, Fondiaria-Sai decreases by 1%.
Among the Milanese blue chips, Enel advances, rising by 3,4%, Atlantia +1,2% and Telecom Italia +2,8%.
Among industrialists, Fiat loses 3,9%, Pirelli 3,6%. and gains 6,2%, Ansaldo +3%.
Among the other industrialists, Finmeccanica drops by 2,6%, Ansaldo -1,7%, Prysmian suffers a loss of 4,8%.
Male Stm which loses 2% with the European tech sector down by 1,6%.
Fears about the economic slowdown are affecting the price of oil, down by 2,8% to 84,4 dollars a barrel. Eni goes up by 0,4%, but Saipem loses 3,5% and Tenaris goes down by 3,5%. ++On the government bond market, the ten-year BTP yield fell by 77 basis points to 5,32% and the spread with the German Bund decreased to 292 basis points.
The euro is strengthening against the dollar, trading at 1,434, from 1,428 on Friday night. On the other hand, the Swiss franc was up again since Friday evening and is trading at 1,0908, from 1,0954.
In the general uncertainty, investors continue to focus on gold and the price of the yellow metal soars to a new record of 1.705 dollars an ounce, from 1.663 dollars.
Among the Milanese blue chips, Enel also stands out, rising by 5%, Atlantia +5% and Telecom Italia +5,6%, Enel Green Power +3,5%. Among industrialists, Fiat rebounds and gains 6,2%, Ansaldo +3%. Among the mid-caps, Buongiorno is positive +6,7% after the good quarterly results, Maire Tecnimont is up 5%. On the government bond market, the ten-year BTP yield fell by 77 basis points to 5,32% and the spread with the German Bund decreased to 292 basis points. The euro is strengthening against the dollar, trading at 1,436, from 1,428 on Friday night. On the other hand, the Swiss franc was up again since Friday evening and is trading at 1,0931, from 1,0954. In the general uncertainty, investors continue to focus on gold and the price of the yellow metal soars to a new record of 1.705 dollars an ounce, from 1.663 dollars.
SORIN, PRYSMIAN, ENEL AND PIAGGIO THE CHOICES FOR EQUITA PURCHASES
"The sell-off we have witnessed in recent weeks and the probable downward pressure from the US downgrade have prompted us to identify some stocks to accumulate with a medium-term horizon", reads a research by Equita Sim in which an attempt is made to identify a list of possible purchases. With a caveat: financial stocks were excluded because "at the moment they are totally tied to the spread (our top pick, however, would be Intesa SanPaolo) and at the same time we have not considered Terna and Snam, obvious choices being regulated utilities (our preference goes to Terna anyway)".
Equita has therefore focused on companies that "by virtue of prospects, geographical diversification, free cash flow, low debt, limited refinancing needs, appeal as M&A targets can offer an interesting upside in the medium term". But what are your favorite Italian titles? Here they are in order of preference: “Sorin thanks to the growth of margins in the wake of new products, 0,7x debt/Ebitda, 85% turnover abroad and possible M&A); Prysmian (high visibility on high value-added businesses, 85% ex Southern Europe business, debt/Ebitda 2.4x but expected to drop sharply).
Equita's list continues with “Enel (30% Ebitda between Latin America, Eastern Europe and Russia, 30% Ebitda in regulated businesses, debt/Ebitda 2.6x); Piaggio (expansion in Asia, 85% Ebitda abroad, 1.8x debt/Ebitda, possible M&A); Campari (80% of owned brands, 70% foreign turnover, only 20% of fixed costs, possible acquisitions, debt/Ebitda 2012 1.1x); Impregilo (good visibility on the estimates thanks to the backlog, market cap lower than the value of the stake in Ecorodovias, newsflow improving on Campania".
