Mib black jersey; Lagarde: "choice depends on data"

(Alliance News) - On Thursday, major European stock markets close mixed and without momentum, with the Mib alone down on the day of the European Central Bank's interest rate decision.

Thus, the FTSE Mib closes in the red 0.6 percent to 30,157.80, the Mid-Cap gains 0.8 percent to 45,367.15, the Small-Cap gives up 0.3 percent to 27,733.83, and Italy Growth ends down 0.1 percent to 8,300.81.

In Europe, London's FTSE 100 ends on the parity line, Paris' CAC 40 ends in the green by 0.1 percent, as does Frankfurt's DAX 40.

In fact, in macroeconomic news, the European Central Bank kept interest rates unchanged at its first meeting in 2024 and pledged to keep them at sufficiently restrictive levels for as long as necessary to bring inflation back to its 2 percent target in a timely manner, despite concerns about an impending recession and a gradual easing of inflationary pressures.

The rate on main refinancing operations remained at 4.5 percent, the highest in 22 years, for the third consecutive time, while the rate on deposits with the central bank remained stable at an all-time high of 4 percent.

In her speech, ECB President Christine Lagarde said that a rate cut was not being considered by policymakers at their first meeting of the year, although she suggested it could come in the summer.

While standing by her previous comments on the timing of the rate cut, Lagarde said that ECB decisions depend "on the data, not the date." Among the most important data updates the central bank will pay attention to is wage growth.

Returning to Italian markets, on the Mib, Hera does best of all and rises 4.7 percent, a day after releasing its new business plan to 2027. In detail, for the year just ended, the company expects a positive performance of the group's industrial margins, with EBITDA expected to exceed EUR1.48 billion, EUR185 million more than the EUR1.29 billion in 2022.

The company explains that this result achieves three years ahead of the target that had been set by the previous industrial plan for 2026 - EUR1.47 billion -, confirming the strategy undertaken by the group and the timing in seizing some market opportunities that presented themselves in 2023.

Contrasted luxury, with Brunello Cucinelli picking up 1.7 percent and Moncler giving up 0.2 percent, while Salvatore Ferragamo's results are awaited, which gives up 0.4 percent on the close on the Mid.

Snam does worst of all and sits on the bottom, giving up 2.8%. The company approved its 2023-2027 strategic plan in which it aims to achieve an increase in adjusted Ebitda of 7.4 percent average per year, from about 7 percent in the previous plan.

It also expects adjusted net income with growth of about 4 percent on average per year, up from 3 percent in the previous plan, "despite more onerous interest rates," the memo released said.

As for the dividend, it expects minimum growth increased to 3 percent from the previous 2.5 percent. The 2023-2027 plan calls for EUR11.5 billion in total investments -- net of public funding of about EUR900 million -- a 15 percent increase over the 2022-2026 plan.

Weighing on the list are banks, with BPER and BPM redeeming 2.5 percent and 2.0 percent, respectively.

Also of note is STMicroelectronics, which gives up 0.5 percent after publishing its results. The company, in fact, reported Thursday that it posted revenues of USD4.28 billion in the fourth quarter of the year, down 3.2% from USD4.42 billion in the same period of 2022.

Net income is USD1.08 billion down 14 percent from USD1.2 billion in the fourth quarter of 2022.

Operating income is USD1.02 billion down 21 percent from EUR1.29 billion in the same period 2022.

On the cadet segment, fashion is still doing the talking, with Tod's among the best - up 7.7 percent -after the publication of results for which it reported that it closed 2023 with a 12 percent increase in revenues to EUR1.13 billion from EUR1.01 billion in 2022.

At constant exchange rates, the increase would be 14 percent to EUR1.15 billion.

Shareholders of OVS, which rises 1.0%, approved Wednesday the distribution of an extraordinary dividend of EUR0.03 per share proposed by the board of directors.

The dividend will be paid on Feb. 19, with record date on Feb. 20 and payment date on Feb. 21.

Among the smallcaps, Aeffe - in the red by 1.7 percent - on Thursday approved preliminary sales figures for fiscal year 2023, which closed with consolidated revenues of EUR319 million, down 9.0 percent at constant exchange rates and 9.5 percent at current exchange rates, compared to EUR352 million in 2022.

Somec--up 1.5 percent--reported Thursday that its U.S. subsidiary Fabbrica LLC, part of its naval architecture and civil facade engineered systems division, has been awarded two new contracts on the U.S. East Coast, worth a total of EUR38 million.

The first contract concerns a residential project developed by a well-known real estate investment fund in the Boston metropolitan area.

The board of directors of Italian Exhibition Group -- up 3.9 percent -- on Thursday approved the 2023-2028 strategic plan, which calls for 2028 revenues of EUR323 million, adjusted Ebitda of EUR90 million and a Net financial position of EUR3.0 million. Over the entire plan period, IEG expects an investment plan of EUR172 million and dividends between EUR16 and EUR21 million.

Among SMEs, Xenia Hotellerie Solution trades in the green by 2.1 percent after announcing Thursday that the board of directors viewed the preliminary figures for the year ended Dec. 31 reporting full-year revenues up nearly 11 percent to EUR50.2 million from EUR45.4 million in 2022.

Comal--up 1.5 percent--reported Thursday that it has signed a EUR1.2 million contract to supply the "Sun hunter" tracker with a leading Italian operator operating domestically.

In New York, the Dow is in the green 0.3 percent to 37,914.72, the Nasdaq rises 0.6 percent to 15,575.54 and the S&P 500 gains 0.5 percent to 4,891.90.

Among currencies, the euro changes hands at USD1.0835 against USD1.0904 recorded at Wednesday's European stock close, while the pound is worth USD1.2697 from USD1.2748 last night.

Brent crude is worth USD81.33 per barrel versus USD80.40 per barrel at Wednesday's close. Gold, meanwhile, trades at USD2,016.20 an ounce from USD2,013.50.03 an ounce last night.

Friday's calendar opens at 0050 CET with Japanese inflation data and at 0101 CET continues with the GfK consumer confidence index.

In Europe, at 0800 CET, the GfK index on sentiment among German consumers is released, while forty-five minutes later it is the turn of the French consumer confidence index.

At 0900 CET from Spain comes the unemployment rate figure. In the Eurozone, at 1000 CET, it is at the turn of information on the M3 money supply and loans to individuals.

At 1110 CET a six-month BOT auction is due, and at 1200 CET comes the monthly report from Germany's Buba.

Overseas, at 1430 CET, the PCE price index, personal income data and personal spending data are released.

Among the companies listed on the Stock Exchange, no special announcements are expected.

By Claudia Cavaliere, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2024 Alliance News IS Italian Service Ltd. All rights reserved.