Caution Prevails on European Markets, Mib Advances with TIM

(Alliance News) - Thursday saw markets move with caution, as the FTSE Mib remained above parity, buoyed by a strong performance from TIM, which was upgraded to 'buy' by Deutsche Bank with an increased target price. However, banking stocks continued to weigh heavily on the index.

On the macroeconomic front, Italian inflation in September remained steady at 1.6%, unchanged from the previous month, reflecting divergent price trends across different spending categories.

Specifically, in September, the national consumer price index recorded a 0.2% monthly decline, down from a 0.1% increase in August, in line with preliminary estimates.

As a result, the Mib rose by 0.4% to 42,084.77 points, the Mid-Cap advanced 0.3% to 56,572.63, the Small-Cap slipped 0.1% to 36,769.50, and the Italy Growth index fell 0.2% to 8,599.53 points.

Other European markets were mixed. Paris's CAC 40 was up 0.5%, Frankfurt's DAX 40 edged higher to 24,188.50 points, and London's FTSE 100 was slightly negative at 9,421.57 points.

At Piazza Affari, Telecom Italia soared by 5.5% to EUR0.506 per share following the target price upgrade.

Generali, which participates in the Infrastructure Resilience Development Fund--a fund dedicated to infrastructure in emerging countries with an initial USD340 million raised and expected to grow by 2026--slipped 0.2%.

Preparations are underway for the Mediobanca shareholders' meeting, with shares up 0.5% ahead of the approval of the new financial statements and board renewal, in anticipation of the integration with Banca Monte dei Paschi di Siena, which lost 0.9%. The deadline is set for October 28.

Meanwhile, speculation is mounting over the resignation of Paolo Visca, representing the Ministry of Economy and Finance, from STMicroelectronics' supervisory board; the stock was up 0.1%.

Saipem announced it has secured three new offshore contracts worth a total of about USD700 million as part of the Shah Deniz Compression project operated by bp in Azerbaijan. The Italian company's share amounts to around USD600 million, though the stock declined 0.7%.

Banco BPM, down 0.1%, announced a cash buyback offer for all of its 2026 bond issued under its EUR25 billion Euro Medium Term Note Programme, with a total nominal outstanding amount of EUR500 million.

Buzzi closed the list with a loss of 3.5% at EUR47.62 per share.

On the Mid-Cap, SOL led gains with a 3.3% rise to EUR50.80 per share.

Sesa, which concluded its buyback program launched on August 28--acquiring a total of 177,350 shares at a volume-weighted average price of EUR84.01433 each for a total of EUR15 million--traded down 0.7%.

News of Piaggio's interest in the Philippine market, one of Southeast Asia's most dynamic emerging markets, pushed the stock up 1.6%.

As Bonazzi of Alliance News noted, renewed tensions between the US and China over strategic industries are forcing Italy to choose between continuing to support free markets--including Beijing--or reaffirming its alliance with Washington.

Two cases are particularly awkward for Palazzo Chigi: Pirelli, down 0.2% today, and Cdp Reti, both partially owned by Chinese companies.

D'Amico International Shipping posted a 2.0% gain, while Cementir Holding closed the basket down 1.8%.

On the Small-Cap, EPH accepted the binding offer from RONA Limited Company. The deal involves a total investment of EUR10 million in EPH's share capital, comprising EUR9.5 million in a capital increase and EUR500,000 in cash. The stock theoretically jumped 70%, though it currently lacks a reference price.

Gabetti Property Solutions reported that corporate investments in Italy exceeded EUR7.7 billion in the first nine months, up about 17% from September 30, 2024. The company--whose stock fell 2.0%--noted that the retail sector accounted for 29% and hospitality for 21% of the total.

Zest, which hit a 52-week low at EUR0.1285, fell 1.9%.

Softlab led gains, up 2.4%, while Beewize was the worst performer, down 10%.

On the Italy Growth index, Lindbergh--currently not trading--completed the acquisition of Salvucci Maurizio e C. for EUR105,000.

Impianti, up 1.6%, announced third-quarter revenues of EUR4.6 million, down 18% from EUR6.2 million in the same period last year.

The takeover bid by Mare Group for Eles is becoming more complicated. After a partial summer offer to raise its stake to 30%, the Salerno-based digital engineering group--up 2.1%--has returned with a full takeover bid at EUR2.25 per share.

However, Eles' board of directors, led by Antonio Zaffarami, called the bid hostile and undervalued, noting a 27% discount to the EUR3.08 fair value estimated by Kt Partners. Eles shares were down 0.4%.

MIT SIM gained 7.7% to EUR2.10 per share, while Reway Group dropped 6.5% to EUR10.80.

In New York, during the European evening, the Dow closed just below parity, the Nasdaq rose 0.6%, and the S&P 500 finished up 0.4%.

In Asia, the Nikkei advanced 1.3%, the Hang Seng slipped 0.1%, and the Shanghai Composite edged up 0.1%.

On the currency front, the euro traded at USD1.1658 from USD1.1639 at Wednesday's equity close, while the pound traded at USD1.3437 from USD1.3393 at the last European close.

Among commodities, Brent crude traded at USD62.16 per barrel from USD62.04 at Wednesday's close, while gold was valued at USD4,227.44 an ounce, up from USD4,183.14 an ounce the previous evening.

Thursday's macroeconomic calendar includes US producer prices and retail sales at 14:30 CEST. At 15:00 CEST, Federal Reserve member Waller is scheduled to speak.

At 18:00 CEST, US crude oil inventory data and the EIA weekly report will be released. At the same time, in the euro area, a speech by European Central Bank President Christine Lagarde is expected.

By Michele Cirulli, Alliance News Reporter

Comments and questions to [e-mail]

Copyright 2025 Alliance News IS Italian Service Ltd. All rights reserved.