The first session of the month and of the semester starts with increases at Piazza Affari. The Ftse Mib, among the best in Europe with the French Cac40, advances by 1.6% to 33,681.72 points. The outcome of the first round of elections in France is under the scrutiny of investors, with a scenario that the markets judge positively: that is, an absolute majority was not obtained in the national assembly. Political uncertainty still remains, but the markets seem to have breathed a sigh of relief. And this is reflected in the trend of European spreads (the BTP-Bund returns below 150 basis points) and in the prices of banking sector securities which are rising strongly in France as in Italy.
At Piazza Affari, i banking companies stand out, with Banca Monte dei Paschi jumping by around 5%. Weakness, however, for Prysmian.
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Banks advance, MPS is the best
With a rise of over 5%, Monte dei Paschi di Siena is the best on the list. Bper Banca and UniCredit also did well, rising by 4.4% and 3.7% respectively. Rises close to 3% also for Banco Bpm. France effect on the Milanese stock exchange and on the banking sector. Beyond the Alps, among the best stocks in the Cac40 there is Societè Generale which rises by over 4% but also Credit Agricole which achieves growth of almost 4%.
Looking at the outcome of the elections in France, Gabriel Debach, market analyst at eToroinvites us to analyze the situation with caution. “The stock markets are cheering after the French elections, opening the week with a wave of optimism. Investors are back to betting on the euro, while the VIX on the Euro Stoxx 50, the fear indicator, is falling significantly. Spreads, which measure the perceived risk on government bonds, are also contracting: the Italian one is falling to 152 points, while the French one is falling to 75 points”, recalls the expert who adds “nThe levels of 7 June, before the European elections, have not yet been reached. In detail, EUR/USD, which was then trading at 1.08875, is now at 1.07608, while the Oat-Bund spread in this period has gone from 48 points to 75, marking an increase of 54%”.
Prysmian on the bottom
Prysmian, Amplifon and DiaSorin. This is the trio of the worst performers on the Ftse Mib in this first part of the day. For Prysmian, which is down around 1% today, the half-year ended with the annual event “Sustainability and Innovation Days”. An event, Equita underlines, “in an overall constructive climate, also thanks to the imminent finalization of the acquisition of Encore Wire on July 2nd, ahead of initial forecasts”.
Among the ideas that emerged from CEO Battaini’s press conference, the broker still recalls, the fact that Prysmian has already achieved, thanks to the acquisition of Encore Wire, the CMD objectives of October 2023. On Encore Wire it was reiterated that the transaction strengthens the positioning of the Italian group in North America, a market where profitability is greater, and how there is strong complementarity between the two companies. “For any new M&A targets, PRY will focus on medium-sized companies, with a size not exceeding 500 million euros. At the moment, no further acquisitions are expected in the next two and a half years”, the experts report.
