BANCO POPOLARE, INTESA AND PIRELLI IN THE RALLY. BTP AT THE TOP SINCE 2005, RECORD STOCK SINCE 2011
Golden seat for Piazza Affari. The Milan Stock Exchange is up after the release of a series of data which confirms a picture of low inflation in Europe. The FtseMib index rose by 1,23% and reached its highest level since June 2011 at 21.438. The other Stock Exchanges are more cautious: Paris +0,34%, London gains 0,23%, Frankfurt +0,8%. Madrid advances by 1,05%.
The slowdown in prices offers new fuel to the expectations of stimulus measures by the ECB. In February, producer prices in Italian industry remained unchanged compared to January (-1,4% on an annual basis). In Spain, consumer prices fell by 0,2%, more than expected.
As a consequence, public debt purchases are multiplying. The Italian Treasury has placed all 3 billion euros of 5-year BTPs (fifth tranche) with the yield falling below 2% for the first time, marking a new all-time low of 1,88% from 2,14% touched in the February auction. Demand fell with the coverage ratio down to 1,41 from 1,60 previously.
The Treasury has assigned 10-year BTPs (third tranche) for the maximum expected amount of 3,750 billion euros with falling rates. The average yield fell to 3,29% from 3,42% in the February auction to its lowest since September 2005. All 3,250 billion Ccteu were also assigned with an average yield of 1,3%.
The spread also fell to 174 bps. The spread between Spanish and German 10-year bonds is 168 basis points with the Bonos rate at 3,2. The governor of the Bank of Italy Ignazio Visco has urged the government to "resolutely" address the structural issues holding back the Italian economy. "The signs of reawakening that we see are encouraging, but they must be confirmed in the months and years to come: constancy in reforming action is essential", says Visco.
In Piazza Affari shines the star of Understanding up 3,83%, best stock in the EuroStoxx50 European index. The bank announced the results for 2013, which closed with a loss of 4,5 billion euros after maxi-writedowns and provisions for over 12 billion. Dividend of 5 cents per share confirmed.
The institute does not currently have any dossier for acquisitions, said the CEO Carlo Messina “In any case we will not make acquisitions in Italy. Outside of Italy it will depend on the price and the opportunities, but at the moment we don't see any opportunities”. Messina then stated that the possible conversion of savings "is not a priority".
Today, underlined the CEO, Cá de Sass is the strongest bank in Europe in terms of capital and liquidity. It beats its French and German competitors and is in no way dependent on the ECB after the 36 billion euros borrowed in the two Ltro operations and now fully repaid. The institute has the potential to increase the dividends recognized to its shareholders up to 18 billion euros compared to the 10 billion indicated in the plan, naturally "if we do not have other growth operations other than those envisaged in the plan".
Instead, the star of the industry is Pirelli, up 3,12% after Kepler Cheuvreux was promoted to Buy from Hold. The Popular Bank is marks an increase of 5,23%: yesterday evening the company announced the terms of the capital increase of 1,5 billion. Shareholders will be offered 17 new shares in pre-emption for every 18 held at 9 euros each.
Unicredit + 0,93% MontePaschi + 3,22% Pop.Milano +2,8%. The insurance sector was held back by the indications arriving on Aviva: Generali + 0,37% UnipolSai + 0,14%.
Among the blue chips also worth mentioning: Telecom Italy advancing 2,86% after Berenberg raised his recommendation to Buy from Hold. Fiat salt of 1,3%, Cnh Industrial + 0,81%. Finmeccanica +0,9%. Among the few discounts, StM -0,6%.
Eni +0,45% ed Enel +0,34% after the news that the Chinese central bank has acquired 2% of the capital of both companies. In the rest of the list it stands out Maire Tecnimont +4,4%: Barclays raised its target price to 3,25 euros from 2,15 euros. Overweight recommendation confirmed.
