UKRAINE HOLDS DOWN THE EXCHANGES. IN VIEW START BEAR. CITI -5,5% FAILS THE FED EXAMS
Asian stock exchanges are slowing down. Weighs the negative session of Wall Street. There Tokyo Stock Exchange, in the days of the ex-dividend, is essentially balanced. All other price lists in red. The negative ending of the US Stock Exchange weighs precisely: on Wall Street the Dow Jones lost 0,6% to 16.316 points, the Nasdaq fell by 1,43%. The S&P500 index closed at -0,7%.
Among the causes of the decline, in addition to the threat of new sanctions against Russia (the IMF is ready to help 15 billion to rescue Ukraine), the heavy sales in the technology sector and the outcome of the Fed's stress tests on banks.
Citigroup fell 5,5% after the central bank rejected its draft balance sheet: dividend and buyback too generous. And the US branches of Banco de Santander and Rbs were also rejected. The accounts of Goldman Sachs and Bank of America pass only after major revisions. Facebook drops more than 5% to $61,71 after buying Oculus VR for $2 billion.
Sharp reduction for King Digital Entertainment.On the day of its debut, the stock lost more than 20% against the IPO which values the company at around 6 billion: among the 60 companies that landed on Wall Street this year, only nine opened in decline and lost more than 10 %.
The wave of declines threatens to affect the start of trading in Europe, which was up yesterday. All sector indices moved up and the strongest gains were for auto stocks (Stoxx +1,8%) and insurance stocks (+1,2%). The Paris Stock Exchange rose by 0,7%, Frankfurt +1%.
The exception was London which broke even weighted by the fall of Lloyd Banking Group, down by 5%: the British government reduced its stake from 33% to 25% by selling the shares on the market at a discounted price of 4,6 % compared to yesterday's close. In Milan, the FtseMib index gained 1,3%, again exceeding the threshold of 21 points at 21.108. Since the beginning of the year, the increase is 11,1%.
BOT AUCTION, A NEW RECORD IN SIGHT
The positive momentum of Piazza Affari, which also attracts capital from abroad, is accompanied by the appreciation of Italian government bonds: the yield on the 10-year BTP fell to 3,33% from 3,41% yesterday, reaching mark the new low since October 2005.
After the positive outcome of the Ctz auction, a great success is expected today for the offer of 7,5 billion 6-month BOTs (bills of 8,57 billion arrive at maturity). Yesterday evening on the Mts gray market, the Bot in auction today traded at a yield of 0,502%, slightly up from the all-time low of 0,455% of the placement a month ago. Medium-long term placements will instead arrive tomorrow, with a total offer of up to 10 billion euros, divided between the 5- and 10-year benchmark BTPs and the new November 2019 CTZ.
BAZOLI: FOUNDATIONS AVAILABLE TO LEAVE THE FIELD
The fever rises for the presentation of the business plan Understanding +1,5%. The consensus of investment banks forecasts: net profit down from 1,6 billion in 2012 to 899 million and a stable dividend at 5 cents. As regards adjustments to loans, the estimates are very different: they range from a minimum of 5,4 to a maximum of 7,9 billion (from 1,3 to 3,8 billion of adjustments in the fourth quarter.
“I don't want to anticipate anything – Giovanni Bazoli said yesterday – What I can say is there will be a very positive signal,” he said. The banker then added that after the presentation of the plan, reflections on the bank's governance will resume. “After the plan there will be many things to start of an organizational and institutional nature. Certainly within the mandate we will have examined this problem”, explained the banker who also commented on the increase to 5% of the stake in Intesa Sanpaolo by BlackRock. "It is an absolutely positive sign and I have heard nothing but positive comments from our shareholders, i.e. the foundations", said Bazoli, adding that the foundations are "very willing to leave the field gradually" to the advantage of institutional investors, such as pension funds "which have not yet been implemented in Italy".
MPS, THE FOUNDATION IS STILL SELLING
The stake in Monte Paschi drops to 12% +1,8% of the Foundation which, between 19 and 24 March, sold a total of approximately 358,5 million shares in three transactions, equal to 3% of the capital, for a total value of approximately 85,7 million euro. Meanwhile, the president Alessandro Profumo applauds the entry into the capital of Black Rock, now in second place among the shareholders of the institute which "will certainly subscribe to the capital increase".
Yesterday was the redemption session for the cooperative banks which two days ago had suffered heavy reductions: Banca Popolare di Milano jumped 5,1%, Pop.Emilia + 5%.
RECOVER LUXURY. LUXOTTICA, THE GOOGLE EFFECT CONTINUES
The strong recovery of emerging markets, from Brazil to Turkey, has galvanized the luxury sector. In Milan he leads the race Ferragamo +4,5%, they follow closely Yoox +2,94% and Tod’s +3,37%. Well bought Luxottica +1,6%, Safilo splashes +3,5%. Great exploit of Prada +7% in Hong Kong (up by a further 0,51% this morning). In Zurich it shines Richemont +2,4%. Well bought Luxottica +2,8%, jumps up Safilo +4,4%.
EXOR AT THE HIGHEST, GOOD RATES FOR TERNA
Among the blue chips worth noting: good performance by the Agnelli team. Fiat gained 1,7%, Cnh Industrial +2,7%, the parent company Exor rose by 3,3% to a new all-time high of 32 euros.
Telecom Italy +3,7%. For the choice of the new president of Telecom Italia there is no voting pact between the shareholder funds, which will therefore move in no particular order. The coordinator of the management committee Marco Vicinanza said it: “Let's go free rein, separated. We are not going to express the president because we want to remain in the minority and therefore not have executive roles ”. The funds will still tip the balance in the choice of the president between Giuseppe Recchi and Vito Gamberale. "It is a choice that each asset management company will make independently," added Vicinanza.
Eni +0,3%: HSBC cut Underweight recommendation from Neutral. Enel +1,2%. The electric giant intends to offer a payout of at least 50% but, if the results are better than estimated, it could increase it, explains the CEO Conti, who self-reduced his 2013 salary by 39% to 2,16 million euros . Kepler raises the target price to 4 euros but confirms hold.
In progress Terna + 1,22% after the 2014-2018 industrial plan presented, in which the utility plans investments of 5 billion. The stock received a series of target price increases by Equita (from 3,72 to 3,8 euro), Mediobanca Securities (from 3,9 to 4 euro), Deutsche Bank (from 3,4 to 3,5 euro) and Banca Akros (from 3,75 to 4,2 euro), recommendation from hold to buy. Campari it gained 1,38% to 5,86 euro: Deutsche Bank started hedging with a hold judgment and a target price of 5,6 euro.
In great evidence some medium/small caps on the closing day of the Star Conference in Piazza Affari.
EXPLOIT OF CAIRO, EGYPT PUSHES MAIRE
Cairo communication rose by 7,5% after the publication of some data on the trend of advertising sales on the La7 and La7d channels in the first quarter of 2014. Urbano Cairo with reference to a possible increase in his stake in Rcs+1,53% said that "one can never tell".
Marie Tecnimont +10% thanks to the news of an order in Egypt for the construction of auxiliary structures and installations of the Tahrir Petrochemical Complex located in Egypt. Brilliant too drum +4,6% and Bank Ifis + 4,4%. Piaggio comes out of 7,3%: several analysts have raised their target prices on the stock after the update of the multi-year plan.
