FTSE MIB Falls for Third Straight Session

The FTSE MIB dropped nearly 1% toward 44,000 on Friday, extending its decline for a third straight session, and moving toward an over three-month low touched earlier this week, as the Middle East war showed no signs of easing. Oil prices also continued to rise, sustaining worries over inflationary pressures. The financial sector, the heaviest on the index, extended losses, including UniCredit (-2.3%), Intesa Sanpaolo (-1.9%), Banco BPM SPA (-1.7%), Bper Banca (-1.5%), Mediobanca (-1.5%), and Banca Monte dei Paschi di Siena (-1.4%). Luxury names were also in the red, including Ferrari (-0.7%), Stellantis (-1.8%), Brunello Cucinelli (-2.8%), and Moncler (-1.6%). On the upside, defence and energy stocks Leonardo and Eni rose, both up more than 1%. For the week, the benchmark index is on track for a modest decline.

The FTSE MIB closed 0.7% lower at 44,456 on Thursday, tracking the sharp losses in European stocks as energy prices increased further and tightened financial conditions for European economies, especially those with higher debt. The heavyweight financial sector recorded sharp losses as higher bond yields pressured their balance sheets and increased the reduced the outlook on net interest margins. UniCredit fell 3.7% while MPS and Mediobanca dropped close to 4% after yesterday's outperformance. The banks had approved a selection of merger plans, with MPS announcing EUR 1.6 billion in new shares to offer Mediobanca shareholders with 2.45 MPS shares for each Mediobanca share. In turn, Leonardo rose by nearly 6% to a fresh record of EUR 63.88 after unveiling optimistic results on its business with EUR 142 billion in orders until 2030.

The FTSE MIB Index fell -231 points or 0.52 percent on Thursday to close at 44542 points. Leading the losses are MFE-MediaForEurope (-11.06%), ERG (-8.58%) and Banca Monte dei Paschi di Siena (-4.02%). Top gainers were Leonardo SpA (5.41%), Eni (2.42%) and Telecom Italia (1.72%).