Energy stocks such as Enel and Eni are still enjoying the high utility bills and waiting for the investments made to come in to fruition to give surplus value to the companies, meanwhile Unicredit issues a high-yield product whose underlying is Stellantis that rears its head again after a negative month precisely because of the expansion of electricity that gives the stocks a chance to go back into the green.
Stocks of Stellatis, Unicredit, Enel and Eni up close.
The awakening after the news of the inflation data that came out yesterday was good, the CPI at 7.1% year-on-year versus 7.3% forecast and 7.7% in October benefited all stock markets not only New York at least in perspective.
The inflation figure net of energy and food prices abruptly slowed from October’s 6.3% rise to 6% growth.
Let’s take a case-by-case look at how the most important stocks on the Italian stock market reacted in Piazza Affari.
Stellantis (STLA) stock
The stock, from its inception to the present day, has had a very volatile trend that is also a child of the epochal changes involving human society.
After the automotive group’s negative month, the trend is changing, and today FCA (Stellantis) registered +0.13% to 13.82 euros per share.
The daily trend bodes well for a turnaround that could lead the stock to rise further.
The day’s high was touched by the stock at 14.11 euros and is higher than the high touched in yesterday’s session.
Relative performance against the FTSE Italia All Share index was down 1.28% from the 13 December session doing worse than the market.
Volume touched 11,046,930 pieces traded up from the previous session but below the weekly average still leaving a rise possible.
For a hypothetical return in exchange for investment protection, it is possible not to intervene directly by buying shares in the company but to buy a certificate recently issued by Unicredit.
The instrument that the Italian investment bank offers as the perfect assist to get a foot in Stellantis is the Unicredit Recovery Top Bonus, which is traded on EuroTLX and has a nominal value of 100 euros.
If at the expiration of the certificate the stock is equal to or higher than the value at the time of purchase the certificate will pay the maximum amount of 100 euros if, on the other hand, this does not occur the nominal value of the stock will be paid, which must not exceed the cap in any case.
Unicredit (UCG) stock
The stock continues its lateralization and despite positive news of investments in the south, it does not take a strong directionality.
Ferdinando Natali, former credit manager and now head of the southern area (Campania, Calabria, Puglia and Basilicata) for Unicredit Italia supports investment in the south, which a recent study found to be more profitable than in the rest of Italy.
Speculation of new appreciation clashes with the positive figure of only 0.28%, but the high recorded in yesterday’s session at 12.9840 euros still gives hope.
The stock did slightly worse than the FTSE Italia All Share index (-0, 09%) and volumes of 17,900,750 units traded are above both the last session and the weekly average.
Against a backdrop of intense volatility, investors are still betting on the stock.
Enel (ENEL) stock
From mid-October to today, the stock has gained 26% and the run still knows no rest.
Today the company is trading at 5.26 euros a share, growing 0.15% from yesterday’s session thanks in part to the firm objection made to the Antitrust Authority for the measure that followed the investigation into gas and electricity prices.
According to the watchdog, the company unilaterally and illegally changed the price of electricity and natural gas.
Enel disputes the measure and states in a note that:
“Not having modified to its customers the economic conditions during the period of validity of the contracts, in accordance with the provisions of Article 3 of the Decree-Law so-called Aiuti bis.”
For the company, the Antitrust Authority:
“By preventing the incorporation of cost changes that occur after the contract has expired, it damages customers for whom electricity operators will not have energy available at pre-crisis prices.”
Eni (ENI) stock
Italy’s other energy supplier is essentially breaking even at 13.77 euros a share, but the stock has been on a downward trend since December when we consider that it was trading at 14 euros in November.
Eni has touched important bearish levels, and recent investments lead one to think that there will be a rebound in the short to medium term.
In fact, the company has completed and inaugurated a 10 MW plant in Tataouine that, in addition to helping the country in the decarbonization process, is functional to Eni’s goals that set zero GHG emissions by 2050.
The ignition of the plant was done yesterday in the presence of Neila Gonji, Tunisia’s Minister of Industry, Energy and Mines in addition to those of the Tataouine authorities.
The plant will provide the country with more than 20 GWh of energy per year while saving 211,000 tons of Co2eq.
The energy will in turn be sold to the Société Tunisienne de l’Electricité et du Gaz (STEG) through a 20-year Power Purchase Agreement.