Today is a bloodbath in the financial market. That while the AEX (-1.8%) still started the trading day in the green. Rumors that the ECB will raise the key rate by 75 basis points at the next meeting is hurting sentiment.
It is not said, however, that the European Central Bank will actually do this. Investment advisor Rein Schutte of Noesis Capital Management tells ABN Financial news that it may be a test balloon. It is a way to gain insight into the possible reaction of the financial markets.
That one is clear. Interest rates soar while stock prices plummet. Fed Chair Jerome Powell also gave a speech in Jackson Hole today. He said relatively little, although the tone was rather hawkish. This did not help sentiment in the markets either.
Just here Powell’s speech. On balance, I think it sounds quite hawkish because of sentences like: “The Federal Open Market Committee’s overarching focus right now is to bring inflation back down to our 2% goal” and “Restoring price stability will take some time”: https://t .co/gpOvdIXWnu
— Erik Mauritz (@erikmauritz) August 26, 2022
Almost everything down
It is the technology stocks that take the hardest blows. Just Eat Takeaway (-7.8%), Adyen (-3.9%) and besi (-2.6%) are on sale. Interest rates are skyrocketing today and then growth stocks are not available for a while the place to be.
What is striking is that the defensive ports are also being hit. Even with relatively stable stocks like relx (-4.0%) and ahold (-1.5%) there is no outperformance to be achieved today. shell (+0.1%) on the other hand, remains in good shape, but that is due to the sky-high gas prices.
One of the few sectors that is actually benefiting from rising interest rates is insurance. NN Group (+0.2%) and ASR (-0.1%) outperform the broad market. Alone Aegon (-1.4%) does not participate.
further beats Heineken (+0.0% today his industry companion AB Inbev (-2.2%). The latter has a high debt mountain and a rising interest rate is not too pleasant. The advantage is that the vast majority of the debt is long-term and the short-term repayment obligations are relatively limited.
The big bleeder is Pharming (-10.6%). I can’t explain where this price drop comes from today, but frankly I couldn’t before the rise. It all depends on the FDA’s decision whether or not to approve Leniolisib. As long as this is not the case, the share will remain a plaything for speculators.
The departure of Frans van Houten has certainly not led to a relief rally in the share Philips (-3.3%). Since the announcement of the news, the price has even fallen by 11%, so that the share is now at its lowest level since July 2012.
In other words: in the past ten years, the company has not created any value for its shareholders, while the AEX has more than doubled in the same period. The share price has been under pressure in recent days, because the number of people filing a claim against Philips has risen sharply.
Claims lawyers have reported to journalists from the website MedTech Dive that the number of claimants could be as high as 60,000. Philips said two months ago in De Telegraaf that it assumed 50,000 claimants. The higher the number of claimants, the higher the settlement amount.
Still, we think it’s unwise to throw in the towel. You can read exactly how this works in the article below.
Philips: the number of damage claims is rising fast #PhilipsRoyal https://t.co/mj4oKzfpms
— IEX Investor Desk (@Investor Desk) August 26, 2022
The share sif (-4.4%) is one of the largest decliners in the local market. There is something to be said for this disappointing price reaction, because the numbers were not great.
Although the operating result improved slightly in the first half to €21.1 million, corrected for a one-off charge of €2 million, a small decrease remains.
Net profit decreased by €2.5 million to €4.7 million due to higher depreciation. The latter remains a problem for Sif. The company simply cannot improve its profitability. As a result, the stock is still trading below the introduction price in 2016.
Little reason to get excited about Sif #SifHolding https://t.co/sIX2A7DiY5
— IEX Investor Desk (@Investor Desk) August 26, 2022
It will come as no surprise to you that European interest rates in particular are shooting up. The Dutch fee on ten-year government paper increases by no less than 12 basis points to 1.76%.
- Netherlands: +12 basis points (+1.76%)
- Germany: +10 basis points (+1.42%)
- Italy: +19 basis points (+3.75%)
- United Kingdom: +3 basis points (+2.64%)
- United States: +2 basis points (+3.05%)
The weekly lists
- AEX this week: -2.0%
- AEX this month: -2.9%
- AEX this year: -11.6%
- AEX reinvestment index this year: -9.6%
It is a trade fair week to quickly forget. Virtually all stock indices are losing quite a bit of ground. The DAX even loses more than 4%. Then the 2.0% drop in the AEX still relatively.
The list of climbers is sparse this week. prosus (+3.3%) benefits from the news that the US regulator SEC has reached an agreement with China on inspections of Chinese listed companies listed on Wall Street.
shell (+4.0%) is reaping the benefits of increased gas prices, while Just Eat Takeaway (-16.6%) almost completely relinquished last week’s gains. Interest rates are rising and it is therefore not surprising that growth stocks are selling out.
alfen (+12.3%) is rewarded for its strong half-year results and OCIA (+10.5%) benefits from higher fertilizer prices. Also ASR (+2.6%) still squeezes out a small plus thanks to its half-year results. However, this does not apply to Post (-9.7%). It’s a mystery to me how the Polish locker owner could be floated so expensively.
Azerion (+6.8%) I honestly did not expect at the top of the list of climbers. sligro (-6.6%) on the other hand, is weak. Kempen removed the share from the buying list at the end of last week. However, the price target of €24 is well above the current share price of €17.
Finally, I wish you a nice weekend. This week I have the honor to write the preview.