(ABM FN) The Brussels stock exchange plunged deep into the red on Wednesday morning. Towards the end of the morning, the Bel20 was down 1.3 percent at 3,216.66 points, partly due to the sharp fall in prices of Galapagos and Barco.
The surrounding stock markets were also at a loss. According to ING investment manager Simon Wiersma, investors are waiting for new impulses.
One impetus could be the second corona support package, still under negotiation in the United States. “For the time being it is a rewarding subject for analysts and financial media to give some color to boring stock exchange days,” says the market researcher.
According to market analyst Naeem Aslam of AvaTrade, investors do not expect an overall package agreement, but agreement on a basis for a final deal.
In Europe, the prices of companies that come up with figures are moving for the time being, says Wiersma. This is also the case in Belgium today, with a sharp fall for Barco, which came with disappointing figures.
In the macroeconomic field, according to Wiersma, there are few directional figures on the agenda.
In the US, no major macro data is released today either, but the Federal Reserve’s Beige Book is being published. “However, we don’t expect any news from that,” said Wiersma.
The euro / dollar was trading at 1.1847.
Gainers and fallers
In the main index, Barco and Galapagos were down after a disappointing quarterly report and a sell advice from Goldman Sachs respectively.
Barco’s performance in the third quarter was significantly lower than expected, leading analysts also believe the recovery will take much longer than previously expected. KBC Securities lowered the advice from Buy to Accumulate with a 2.00 euro lower price target of 20.00 euro. According to ING, Barco remains an attractive investment, but in the long term, so patience is required. The stock was pledged by 16.5 percent.
Goldman Sachs lowered the advice for Galapagos from Neutral to Sell, while the target price was also sharply revised down from Euro 108.00 to Euro 87.00. The analysts foresee a significant delay for filgotinib in the United States after the FDA requested more information last summer. This puts filgotinib well behind competitor AbbVie with Rinvoq. In addition, Goldman has also reduced the number of indications for filgotinib from 10 to 5. Finally, analysts also spoke of “weaker market penetration.” The stock also lost a hefty 7.1 percent.
WDP, which also provided figures, on the other hand, could count on the support of investors and analysts. The stock won 1.7 percent, taking the lead in the Bel20. WDP is well on its way to achieving its own targets by 2020. Kepler Cheuvreux found no surprises in the quarterly update of the logistics real estate company. Degroof Petercam then raised the price target to 27.50 euros, with an unchanged Houden advice.
Leasinvest rose 2.3 percent on the second line.
Kepler Cheuvreux increased the advice for Elia from Houden to Buy, and also adjusted the price target upwards from 100.00 to 105.00 euros. With the stock down 15 percent since Kepler Cheuvreux issued a Houden recommendation for Elia, the analysts believe it is now another good entry point. The stock added 1.0 percent.
Lotus Bakeries closed the row with a decrease of 2.6 percent.
In the smaller stocks, Jensen and MDxHealth shot up 6.7 and 10.0 percent respectively. While there was no directional news for the supplier to the laundry industry, the biotech company presented a positive quarterly report.
MDxHealth saw a decline in sales and test volumes on an annual basis, but on a quarterly basis the figures showed some recovery. The growth in the third quarter means, according to KBC Securities, that the biotech company is showing resilience, despite the corona crisis. KBC Securities believes that the group will step up a gear once the patient flow gradually returns. The stock exchange put the stock on the buy list with an increased price target of 1.00 euros.
Kepler Cheuvreux raised the price target for Oxurion from 2.30 to 2.90 euros with an unchanged Houden advice. Kepler’s analysts decided on the price target increase after the R&D day organized by Oxurion. The stock nevertheless lost 3.7 percent.
ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.
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