FTSE MIB Rises as Banking M&A Fuels Rally

The FTSE MIB gained 0.6% to close at 50,208 on Monday, lifted by strong gains in the banking sector. MPS surged 13%, while Mediobanca, which is set to merge with MPS, soared 12% after Intesa Sanpaolo launched a competing €30.6 billion takeover bid for MPS, just one day after Banco BPM (+0.8%) proposed a merger offer. Intesa Sanpaolo, however, fell 1.4% following the announcement. Luxury stocks also advanced alongside their European peers, with Ferrari gaining 1.8% and Moncler rising 1.1%. Meanwhile, STMicroelectronics climbed 4%, tracking global technology shares higher amid persistent optimism surrounding artificial intelligence. On the downside, UniCredit lost 2%, while Enel fell 0.7% and Stellantis declined 1.1%.

The FTSE MIB Index went up by 315 points or 0.63 percent on Monday to close at 50208 points. The rise was led by Banca Monte dei Paschi di Siena (12.96%), Mediobanca (12.03%) and Bper Banca (5.18%). On the downside, the weakerst performers were Hera (-1.88%), Buzzi Unicem (-1.74%) and Avio (-1.67%).

The FTSE MIB was flat to around 49,800 on Monday, following losses from the previous session, as markets opened the week reacting to renewed geopolitical tensions in the Middle East. Fresh Iran–Israel exchanges of fire further undermined an already fragile ceasefire, raising doubts over progress in efforts to de-escalate the conflict, which now appear to be deadlocked. The developments pushed oil prices higher by over 4%. In corporate news, private bank Intesa Sanpaolo declined more than 4% after unveiling a competing €30.6 billion takeover bid for Monte dei Paschi di Siena, just a day after rival Banco BPM proposed a merger offer. Banco BPM slipped nearly 1%, while Monte dei Paschi surged more than 10%. The moves have triggered a bidding contest for control of MPS, the world’s oldest bank, with the outcome expected to reshape Italy’s banking sector.