MIB remains down but Avio clinches seventh bullish session

(Alliance News) - Major European stock exchanges closed Thursday's session mixed despite an improvement in macro-geopolitical sentiment, while Milan positioned itself on the bearish side as it did the previous day, still penalized by profit-taking following recent all-time highs.

Supporting the bullish side was primarily a report broadcast by Iranian state television regarding a preliminary draft agreement between Tehran and Washington, which would include military de-escalation measures and the possible removal of the maritime blockade in the Strait of Hormuz within a month.

The market continues to price in a scenario of progressive detente in the Middle East, also in light of the absence of further hostile signals from either side in recent hours.

On the monetary front, the repricing of European Central Bank rate expectations further favored risky assets. Money markets now indicate a deposit rate of 2.6% by year-end, down from the 2.75% expected last week, while maintaining a high probability - around 80% - of a further hike at next month's meeting.

Simultaneously, expectations for the Bank of England have also been scaled back, with traders discounting approximately 40 basis points of tightening by December, and a nearly 50% probability of a hike as early as the next meeting.

Consequently, the FTSE MIB shed 0.6% to 49,578.67 points, the Mid-Cap fell 0.3% to 61,780.32 points, the Small-Cap gained 0.6% to 35,520.51 points, while Italy Growth closed up 0.1% at 8,989.52 points.

London's FTSE 100 closed in the green by 0.1%, Paris's CAC 40 rose 0.4%, while Frankfurt's DAX 40 closed below par.

Returning to Milan, on the MIB, Avio closed the session gaining 4.9%, marking its seventh consecutive bullish session. Short positions on the stock showed mixed movements, with Citadel Advisors increasing its short position to 0.50% from 0.40%, while Two Sigma Investments reduced its stake to 0.78% from 0.87%. Voleon Capital Management's position also decreased, falling to 1.28% from 1.43%.

Moncler advanced 4.4% to EUR54.66 per share, following a 1.4% decline in the previous session.

Lottomatica Group - up 0.8% - announced on Wednesday that it purchased 276,000 of its own ordinary shares between May 18 and 22 at an average price of EUR25.2283 each, for a total value of EUR7.0 million. To date, the company holds 17.2 million treasury shares, representing 6.8% of the share capital.

Prysmian fell 2.5% to EUR146.50. JPMorgan confirmed its 'overweight' rating on the stock and raised its target price to EUR172 from EUR138, believing the market is still undervaluing the potential of the Digital Solutions division, driven by strong demand related to data centers and artificial intelligence. Analysts explained that the Digital Solutions division, which accounted for 8% of revenue and 11% of the group's adjusted Ebitda in 2025, is entering a new growth phase thanks to increasing demand for optical fiber for hyperscale data centers and defense applications.

Telecom Italia - ending 0.9% lower - announced Wednesday that the board has also launched the first tranche of the buyback program authorized by the shareholders' meeting on April 15. The first phase of the plan involves the repurchase of up to 140 million TIM shares by the end of 2026, approximately 0.7% of the capital, for a value of about EUR100 million at May 26 market prices. The shares will be used for previously approved corporate incentive and remuneration plans.

Eni - down 2.8% on the retreat in crude prices - announced Wednesday that it purchased 3.4 million treasury shares between May 19 and 22 at an average price of EUR23.7630 each, for a total value of EUR79.9 million. Eni holds 91.9 million treasury shares, representing 3.0% of the share capital.

On the Mid-Cap, BFF Bank closed with a bullish candle exceeding 11%, following a 2.5% decline in the previous session.

Salvatore Ferragamo advanced 5.7%, after a 1.3% loss in the previous session.

Technogym closed 8.8% lower. Berenberg confirmed its 'buy' rating on the stock with an unchanged target price of EUR24.50, considering the long-term growth story's solidity intact despite greater caution regarding short-term margins. In the report authored by Anna Frontani, the investment bank emphasized that the group remains well-positioned 'at the intersection of premium fitness, luxury lifestyle, and digital health', reiterating that 'wellness is the new luxury'.

Ariston Holding - down 0.5% - announced Wednesday that it exercised its call option to acquire the remaining 49% of Chromagen Australia Pty Ltd, in which it already held a 51% stake and was fully consolidated, thus reaching 100% of the share capital. The consideration for the remaining 49% stake amounts to AUD33.6 million, or EUR20.4 million.

On the Small-Cap, The Italian Sea Group secured a gain of over 18%, following a 3.9% rise the previous day.

Aeffe - up 3.6% - is accelerating its restructuring process and has filed a petition with the Court of Bologna for authorization to contract super-priority financing within the framework of the group's negotiated crisis settlement. The company requested approval for a bullet loan of up to EUR20 million granted by illimity Bank, with a maximum duration of 18 months and 2 days and a cost equal to 3-month Euribor with a zero floor plus a 12% margin.

TXT e-solutions - down 0.3% - announced Tuesday that it is leading the coordination of a EUR28.0 million project funded by the European Defence Fund, which brings together some of the leading industrial players in the European aerospace, defense, and digital engineering sectors 'to develop new interoperable digital architectures for future defense systems'.

Selling pressure hit Softlab, which shed 9.0% after a 3.3% decline in the previous session.

Among SMEs, High Quality Food gained 15%, marking its third bullish session with a final price of EUR0.59 per share.

ESI - up 9.1% - announced Tuesday that a binding agreement was signed with Innovatec Spa for the merger by incorporation of ESI into Innovatec, with the aim of creating a new integrated group in the energy transition and renewables sector. The transaction, approved by the boards of both companies listed on Euronext Growth Milan, will begin with an Innovatec rights issue of nearly EUR8.0 million.

Maps - flat at EUR2.48 - announced Tuesday that it was awarded a project with a total value of approximately EUR1.2 million and a duration of 7 years, aimed at the technological renewal of the Patient Experience systems at the San Raffaele Hospital in Milan.

Xenia Hotellerie Solution - flat at EUR2.60 - announced Wednesday that it finalized the acquisition of a 60% stake in Layover Technology Solution Srl, a company operating in the accommodation market through the Herop brand, in implementation of what was announced on March 26.

On Wall Street, the Dow Jones is up 0.3%, the Nasdaq is shedding 0.3%, while the S&P is retreating 0.2%.

On the currency front, the euro is trading at USD1.1632 from USD1.1618 on Tuesday evening, while the pound is trading at USD1.3422 from USD1.3438 on Tuesday evening.

Among commodities, Brent is trading at USD96.25 per barrel from USD100.30 on Tuesday evening, while gold is worth USD4,433.31 per ounce from USD4,507.56 at Tuesday's close.

Thursday's economic calendar includes, at 1000 CEST, consumer and business confidence data in Italy, while at 1130 CEST, the auction of five- and 10-year BTPs will take place. At 1200 CEST, Italian consumer price index data is due.

At 1430 CEST, Gross Domestic Product and jobless claims data are expected from the US, along with PCE data.

At 2230 CEST, the Fed's weekly balance sheet is due.

Among Piazza Affari companies, results are expected from Casta Diva, Cube Labs, DBA Group, OPS Retail, Otofarma, and Più Medical.

By Maurizio Carta, Alliance News reporter

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