FTSE MIB Closes Higher

The FTSE MIB rose 0.8% to 52,245 on Thursday, supported by upbeat corporate developments and strength across financials. Financials outperformed as poll for economists reflected projections that the ECB will not raise rates after their September decision. Further lifting the sector, analyst reviews pointed to a positive outlook for the Italian financial sector, with banks and asset managers exceeding Deutsche Bank’s net profit forecasts of 9% and 13%, respectively. Azimut led sector gains, rising 3%, supported by its M&A activity, while Banca Generali (1.3%) remained the top pick. Banco BPM (1.4%) kept its rating unchanged at "Buy", although uncertainty persists around MPS’s (1.6%) takeover bids for both banks. Meanwhile, Stellantis gained 4.3% following news that its Mangualde plant had produced a record two million vehicles. Technology stocks regained some momentum, with STMicroelectronics up 0.7% and Prysmian 1%.

The FTSE MIB Index went up by 453 points or 0.88 percent on Thursday to close at 52245 points. The rise was led by Lottomatica (5.24%), Stellantis N.V. (4.03%) and Azimut Holding (2.77%). On the downside, the weakerst performers were Brunello Cucinelli (-1.72%), Davide Campari-Milano (-1.69%) and Leonardo SpA (-1.52%).

The FTSE MIB was flat to slightly higher at around 51,800 on Thursday, but remained close to its lowest level in five weeks. Heightened tensions in the Middle East kept investors cautious, although the stabilization in oil prices and bond yields after their sharp gains earlier in the week provided some support to sentiment. At the sector level, gains were seen in STMicroelectronics (+1.8%), Poste Italiane (+1.3%), Prysmian (+1.3%), and Telecom Italia (+0.9%). Financials were also mostly in the green, led by Mediobanca (+0.9%), after reports that the ECB is expected to approve by mid-September its merger into MPS. Banco BPM (+0.6%), Intesa Sanpaolo (+0.5%), and BPER Banca (+0.3%) also advanced. On the flip side, oil major Eni fell more than 1%, tracking crude prices lower, while defence stock Leonardo was down over 2%. On the data front, the PMI survey showed that Italy’s services sector expanded at its fastest pace in over three years.