Stock market update: Umicore presses on positive sentiment in Brussels

(ABM FN) On Monday morning, after a slightly red start, the Brussels stock exchange nevertheless found its way to greenery. Towards the end of the morning the Bel20 recorded 0.2 percent higher at 3,048.23 points.

“Equity markets have had a turbulent October month,” says investment manager Simon Wiersma of ING.

“The first week of November promises to be at least as turbulent,” the market researcher continued. “Perhaps it is a harbinger of a turbulent exhibition week. In any case, the ingredients are there. ”

Wiersma was referring to Tuesday’s US presidential elections, while a Federal Reserve interest rate decision is on the agenda on Thursday. Furthermore, extra measures have also been taken in several countries, including Belgium, France and England, to prevent the spread of the corona virus.

In Belgium, all non-essential shops are closing today, while working from home is becoming mandatory where possible. In England, Prime Minister Boris Johnson announced a new lockdown.

According to CBC Bank economist Bernard Keppenne, it is clear that the services sector will be hit hard by these measures. He expects restrictions until at least the end of the year.

As a result, unemployment will rise and inflation will fall. According to Keppenne, this supports the words of President Christine Lagarde of the ECB last week. Lagarde hinted that the ECB will come up with new measures to support the economy in December.

On a macroeconomic basis, it appeared that activity in the eurozone industry grew slightly faster than expected in October. The purchasing managers index for industry rose from 53.7 in September to 54.8 last month. The measurement was therefore slightly stronger than the provisional figure of 54.4.

Markit economist Chris Wiliamson spoke of a very strong month, with output and the order book in particular increasing sharply. In the past two decades, these figures have hardly been that high. “Germany was the star again,” said Williamson.

The euro / dollar was trading at 1.1641, while oil was under further pressure.

Gainers and fallers

Umicore came in an update with a weak outlook for the battery branch, according to ING and KBC Securities. Which means Umicore expects a deterioration in momentum in the second half of 2020, compared to the first half, ING said. According to KBC Securities, Umicore has not been able to allay concerns about long-term growth. The outlook for Catalysis is much higher than expected, according to the banks. The stock plummeted 9.6 percent, closing the row.

UCB, on the other hand, took the lead with a price increase of 4.2 percent. UCB’s bimekizumab outperforms competitor Humira in the treatment of moderate to severe psoriasis.

Aedifica took over a residential care center in Frasnes-lez-Anvaing in Wallonia for 22 million euros. The share rose 0.4 percent.

On Monday, KBC Securities raised the target price for Cofinimmo from EUR 143.00 to EUR 145.00 with an unchanged buy recommendation. The deal that Cofinimmo announced on Friday, whereby the real estate group buys some assets in the health sector from insurer Integrale for 95 million euros and a building on the Tour & Taxis site for 100 million euros, will lead to an increase in annual rent by an expected 3 , 1 percent, according to KBC Securities. The stock added 1.0 percent.

On the second line, Lotus Bakeries rose 5.4 percent.

According to KBC Securities, Bpost can take advantage of the new Belgian lockdown to deliver even more parcels. That is why KBC also increased its valuations for the fourth quarter and the first half of 2021. According to the analysts, revenue will grow by 3 percent in 2020 to 4.16 billion euros and by 1.5 percent in 2021 to 4.36 billion euros. The stock won 5.1 percent.

Kinepolis remains under pressure due to the new lockdown in Belgium, and had to drop another 3.4 percent.

For the smaller stocks, Qrf rose 9.6 percent, while Deceuninck fell 2.0 percent.

Kiadis’ price exploded by more than 250 percent after Sanofi made a takeover bid of EUR 308 million, or EUR 5.45 per share in cash, offering a 272 percent premium over the stock’s closing price on October 30. KBC Securities ruled that the takeover bid is fair. KBC therefore advises shareholders to accept the offer of 5.45 euros per share.

Degroof Petercam and Kepler Cheuvreux have both started tracking Nyxoah. Both stock exchange houses give a buy advice for the share, while the price targets are respectively 20.00 and 21.00 euros. According to Kepler Cheuvreux, Nyxoah’s Ginio system offers major advantages over the competition. The share rose 0.7 percent.

Degroof Petercam and Berenberg have also started tracking Unifiedpost. Both stock exchange houses use a purchase recommendation. The price targets are respectively 26.00 and 28.00 euros. According to Berenberg, Unifiedpost is uniquely positioned for future growth. The bank expects an average annual growth of 27 percent until 2025. The share gained 2.2 percent.

ABM Financial News; [email protected]; Redactie: +31(0)20 26 28 999.

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