The FTSE MIB Index Closes 0.63% Higher

The FTSE MIB Index gained 323 points or 0.63 percent on Friday to close at 51867 points. Gains were led by Technoprobe (3.32%), Avio (2.29%) and Bper Banca (2.06%). Biggest losers were Telecom Italia (-2.78%), Tenaris (-1.71%) and Amplifon (-1.25%).

The FTSE MIB rose 0.6% to 51,867 on Friday, amid increasingly intertwined merger talks in Italy’s financial sector. UniCredit rose 2.2% after indicating it could buy branches from Banco BPM (1.1%) if Credit Agricole were to take over the lender, and similarly from MPS (1.3%) if Intesa’s (1%) takeover bid goes through. The news adds further complexity to Milan's banking game, as Unipol (0.7%) had been set to receive a large portion of MPS’s branches if Intesa’s bid succeeds, while MPS had launched counterbids for Banca Generali and Banco BPM. Tech stocks STMicroelectronics (0.5%), Technoprobe (2.2%) and Prysmian advanced, tracking upbeat sentiment across the sector. Energy stocks Eni (-1.2%), Tenaris (-1.9%) and Saipem (-0.3%) underperformed, however, tracking lower oil prices. Italy’s government is set to meet with refiners next month to discuss boosting production in an effort to lower fuel prices. It had previously extended its tax cuts on diesel through October.

The FTSE MIB rose over 1% to around 52,000 on Friday, rebounding from a four-week low, as easing oil prices offered some respite to markets. Crude prices paused their recent rally after the US and Iran were reportedly exploring a phased agreement that could reopen the Strait of Hormuz. At home, Italy's government will meet domestic refiners next month to discuss boosting fuel production in a bid to ease prices, with Eni and Saras among those invited. Across the board, gains were broad-based, spearheaded by heavyweight financials amid merger talks, including UniCredit (+1.8%), Intesa Sanpaolo (+1.2%), Assicurazioni Generali (+1.4%), Banco BPM (+2.1%), BPER Banca (+1.8%) and MPS (+1.4%). Other notable gainers included technology shares STMicroelectronics and Prysmian, both advancing more than 2%. For the week, the benchmark index is heading for a modest gain.