Newsquawk Daily European Equity Opening News

28th February 2023

ASIA

Asia-Pac stocks eventually traded mixed heading into month-end and despite the early momentum from the positive close on Wall Street where risk sentiment benefitted as yields softened amid mixed data. ASX 200 (+0.5%) was led by strength in the mining-related industries and after mostly encouraging data releases including a stronger-than-expected rebound in retail sales. Nikkei 225 (-0.1%) initially gained amid the confirmation hearings at the upper house where the BoJ Deputy Governor nominees reiterated the need to continue monetary easing, although the gains were gradually pared as participants also digested mixed data from Japan including the largest monthly decline in industrial production in 8 months. Hang Seng (-0.6%) and Shanghai Comp. (-0.3%) were also flimsy and failed to sustain opening advances despite the firm liquidity operation by the PBoC and reports that the White House is scaling back plans to regulate US investments in China.

EUROPEAN CLOSES

CLOSES: EURO STOXX 50 +1.66% at 4,248, FTSE 100 +0.72% at 7,935, DAX 40 +1.13% at 15,381, CAC 40 +1.51% at 7,295, FTSE MIB +1.70% at 27,444, IBEX 35 +1.23% at 9,314, SMI +0.30% at 11,215.

SECTORS: IT 1.79%, Consumer Disc 1.72%, Energy 1.53%, Financials 1.45%, Materials 1.19%, Telecoms 1.07%, Industrials 1.02%, Utilities 0.78%, Consumer Stpl 0.50%, Healthcare 0.26%. 

FTSE 100

RSA (RSAB LN) - Co. has agreed to offload GBP 6.5bln of pension liabilities to Pension Insurance Corp. (Newswires)

Shell (SHEL LN) - Current CEO Sawan was among a number of top managers who, in 2021, discussed the merits of moving the HQ and listing to the US, via FT citing sources; during these discussions, Sawan did not advocate for a move to the US. (FT)

OTHER UK COMPANIES

Wizz Air (WIZZ LN) - To suspend all flights to/from Moldova in March due to security concerns. (Guardian)

BROKER MOVES

Mondi (MNDI LN) downgraded to Neutral from Overweight at JPMorgan

Land Securities (LAND LN) upgraded to Buy from Hold at Stifel Nicolas

Shaftesbury (SHB LN) upgraded to Buy from Hold at Stifel Nicolas

Unite Group (UTG LN) upgraded to Buy from Hold at Stifel Nicolas

DAX

Bayer (BAYN GY) - FY22 (EUR): EBIT 7bln (exp. 8.5bln), Net 4.15bln (exp. 7.6bln), EPS 7.94 (exp. 7.79). Propose a dividend of 2.40/shr (exp. 2.32/shr). Q4: Revenue 12bln (exp. 12.04bln). FY23 guidance: Sales 51-52bln (exp. 50.8bln). AskBio attains European Commission orphan drug designation. (Newswires)

OTHER GERMAN COMPANIES

Scout24 (G24 GY) - FY22 (EUR): Revenue 447mln (exp. 446mln), Net 123mln (exp. 142mln), EBITDA 251mln (exp. 243mln). Confirms FY23 guidance. (Newswires)

BROKER MOVES

Adidas (ADS GY) upgraded to Buy from Hold at Berenberg

Adidas (ADS GY) upgraded to Overweight from Neutral at JPMorgan

Puma (PUM GY) downgraded to Neutral from Overweight at JPMorgan

CAC

Casino (CO FP) - FY22 (EUR): Sales 33.6bln (exp. 33.3bln), +5.2% on a same store basis. Cost saving plan is ongoing and is outperforming initial objectives. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

ACS (ACS SM) - FY22 (EUR): Net Sales 33.6bln (exp. 32.05bln), EBITDA 1.8bln (exp. 1.72bln), Net Profit 668mln (exp. 570mln). (Newswires)

Aena (AENA SM) - FY22 (EUR): Reveneu 4.24bln (exp. 3.79bln), EBITDA 208bln (exp. 1.73bln), Net 901mln (exp. 628mln). Propose a dividend of 4.75/shr (exp. 4.03/shr). (Newswires)

Sabadell (SAB SM) - Nexi (NEXI IM) to acquire a 80% stake in Paycomet for EUR 280mln, Sabadell will hold onto the remaining 20% for a minimum of three years. (Newswires)

Saipem (SPM IM) - FY22 (EUR): Revenue 9.9bln (exp. 9.3bln), EBITDA 595mln (exp. 595mln), Backlog 24bln (prev. 21.2bln). FY23 guidance: Revenue >11bln (exp. 10.89bln), EBITDA 850mln (exp. 730mln). (Newswires)

Santander (SAN SM) - Implements new share buyback programme, allocate a maximum of EUR 921mln. Purpose of this is to reduce share capital. Duration is from March 1st to May 12th. Boosts shareholder returns to 50% of profits. (Newswires)

BROKER MOVES

Campari (CPR IM) upgraded to Overweight from Equalweight at Morgan Stanley

SMI

Adecco (ADEN SW) - FY22 (EUR): Revenue 23.6bln (exp. 22.8bln), Operating Income 113mln (exp. 549mln), reflecting higher amortisation and one-offs relating to AKKA acquisition. Dividend of 2.50/shr (exp. 2.25/shr). (Newswires)

Credit Suisse (CSGN SW) - Conclusion of FINMA’s proceedings in connection with the Supply Chain Finance Funds. Over the course of the last two years, since the closing of the SCFFs, Credit Suisse has implemented a series of extensive organizational measures. Many of these measures were based on the independent investigation into the SCFF matter by Deloitte/Walder Wyss and have addressed FINMA’s findings. (Credit Suisse)

Roche (ROG SW) - Joined with the HS Centre for Disease Control & Prevention to strengthen lab systems to combat HIV and tuberculosis epidemics. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

GN Store (GN DC) upgraded to Buy from Hold at Jefferies

US

CLOSES: SPX +0.31% at 3,982, NDX +0.74% at 12,057, DJI +0.22% at 32,889, RUT +0.31% at 1,896.

SECTORS: Consumer Discretionary +1.18%, Industrials +0.83%, Technology +0.52%, Communication Services +0.42%, Energy +0.31%, Materials +0.23%, Real Estate +0.15%, Financials -0.06%, Consumer Staples -0.18%, Health -0.31%, Utilities -0.77%.

28 Feb 2023 - 06:45- EquitiesResearch Sheet- Source: Newsquawk