Stock Market Update: Trump Raises Bel20

(ABM FN) Today, the Brussels Bel20, like the other European stock exchanges, can benefit from the report that US President Donald has initiated the transfer of power to Joe Biden.

The Bel20 wins 1.7 percent to 3,678.59 points by noon.

In a tweet 10 hours ago, Trump said he continues to dispute that he lost the election, but that he has nevertheless initiated proceedings to transfer power peacefully to Biden. The message ensures that a chaotic transfer of power seems to disappear from the game board, which also gives the stock markets in Europe a boost.

The probable nomination of former Fed chairman Janet Yellen as the new Minister of Finance is also well received by investors, according to investment manager Simon Wiersma of ING.

“Yellen has openly spoken out during the pandemic that the government should use more tax incentives,” added Lynx investment specialist Kevin Verstraete. “The stock market responds positively to this.”

According to Verstraete, the market clearly expects that Yellen will make the provision of more support to the economy negotiable again. According to him, there is also a certain confidence from Wall Street in Yellen. “Under her administration at the central bank, the US stock market was able to flourish, even with some rate hikes, which normally weighs on the performance of equities,” said the investment specialist.

“In addition, the recent news surrounding the development of corona vaccines provides a somewhat clearer picture of the end of the pandemic,” said SEB’s market researchers. “More and more countries are showing a clear improvement in getting the virus under control.”

Oil prices also seem to be picking up thanks to the improved economic outlook. Oil prices rose 1.5 percent around noon after a 1.5 percent hike on Monday. Last week, the oil price also gained about 5 percent on a weekly basis.

The euro / dollar currency pair also trades at 1.1889 in the afternoon.

On a macroeconomic front, it was announced this morning that both German and French business confidence fell in November. The German economy grew by 8.5 percent on a quarterly basis in the third quarter, it was announced. That was slightly more than in a previous estimate.

Gainers and fallers

In the Bel20, the increase in ING’s bank share is particularly striking by no less than 5.8 percent. On Tuesday, UBS raised the target price for ING from 9.30 to 10.00 euros with an unchanged buy recommendation, which gives the stock a tailwind. The ING share is still attractively priced in the eyes of UBS. A breakthrough was also recently achieved through an important resistance zone.

Galapagos has reached an agreement to sell Fidelta to Selvita for an amount of EUR 31.2 million. Fidelta reported a turnover of 17.4 million euros and an EBITDA of 2.6 million euros for 2019. The transaction is subject to customary closing conditions and is expected to close on January 4, 2021. The stock will lose 0.3 percent.

KBC Securities analyst Wim Hoste also commented on the sale of the technical barium and strontium activities by Solvay to Latour Capital. The sale is part of the strategic overhaul of the portfolio, according to KBC, which considers the transaction to be relatively small. Analyst Wim Hoste estimates the sales proceeds at EUR 120 million to EUR 130 million. Solvay share gained 2.5 percent and is among the strongest risers along with AB InBev which also gained 4.0 percent. InBev got a higher target price from Bank of America, which, however, still sees Heineken as a favorite.

The biggest losers in the Bel20 are Argen-X and Cofinimmo who lost 1.3 and 0.8 percent.

In the BelMid, the 3.1 percent increase in Euronav is particularly striking today. The stock has been under heavy pressure over the past month from declining freight rates, but may regain some ground as investors expect the economy to open up slowly again, prompting additional oil consumption.

Shurgard and Biocartis lost 2.2 and 2.2 percent. Today it was announced at Biocartis that the Debiopharm Innovation Fund has reduced its stake in Biocartis to less than 3 percent.

In the case of small stocks, Balta continues its advance of recent days with a price increase of 12.2 percent. Smartphoto, on the other hand, takes a short break after KBC’s advice increase on Monday and loses 4.1 percent on admittedly very low trading volumes.

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

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