Long victory march at AEX comes to the end


The Amsterdam stock exchange has taken a step back Thursday after seven trading days with a profit. Lower growth expectations for the euro zone put the AEX at a loss. A negative mood on Wall Street also caused price pressure on the Damrak. Steel manufacturer ArcelorMittal and cable operator Altice Europe were the biggest loosers in the AEX. The natural food company Wessanen also suffered a lot of damage.

The AEX index closed 1.1% lower at 530.50 points. This led to the rise of the stock market surveyor. The AEX reached a total of 538.60 points this morning. That was almost 13% higher than the low point of 477.05 points, which the gauge touched on at the beginning of this year. The Midkap fell 1.5% today to 727.25 points. The price plates in Frankfurt (-2.3%), Paris (-1.6%) and London (-0.5%) also turned red.

The European Commission caused a dip on the stock markets by lowering growth expectations for the eurozone. While for the euro area in November there were still predictions of 1.9% and 1.7% in 2019 and 2020, that is now only 1.3% and 1.6%. In Italy, which is facing problems, 2019 is even about an adjustment from 1.2% to only 0.2%.

“This put a damper on the fun we had recently seen at the fairs,” said wealth strategist Richard Abma (OHV). “You see that the economy is getting less, but no recession is foreseen.” He remains positive about European equities. “The stock markets have had a good start to the year. And I think there is more in the barrel. ”

The capital strategist is particularly interested in the annual figures published by ABN Amro next Wednesday.

“ING has reported good figures this week. If the results of ABN Amro are in line with those of ING, that would be good for the stock market. After all, the banking shares failed last year “, says Abma.

Investors also keep an eye on Brexit. The British Prime Minister May was in Brussels today to find a way out of the impasse. At the trade front, the American minister Steven Mnuchin (Finance) described the recent meetings with Chinese Vice Prime Minister Liu He as very productive. At the same time, however, reports appeared that a summit meeting between presidents Trump and Xi is not yet to be expected. At the end of the afternoon, the American stock markets ranged from 1.3% to 1.6% in red.

In the AEX, Galapagos took the lead with a plus of 1.4%. The biotechnology concern announced to cooperate with its German counterpart Evotec. Food giant Unilever (+ 0.1%) was the only other riser in the AEX.

ArcelorMittal suffered a loss of 4.8%. The steel manufacturer achieved a higher operating result in 2018, helped by higher prices and acquisitions. The steel producer will also purchase own shares and the dividend will be increased. Shipments of steel, however, went down at ArcelorMittal, partly due to declining demand in different countries. The volatile cable and telecom provider Altice Europe (-5%) was the largest declarant among the main funds.

In the Midkap Intertrust was worth 3.5% more. The financial services provider said that the annual figures are well within their own objectives. The previously issued targets for 2019 were also confirmed. The company also announced that it would take over the branch for third-party accounts and settlements from ABN Amro. Fliticandeler Flow Traders (+ 3.8%) was the biggest climber among the Midkappers.

Stainless steel manufacturer Aperam (-4.3%) was the biggest faller in the Midkap with a loss of 2.7%. Air France KLM flew 3% lower. The KLM works council is worried about the future of the airline, the OR chairman informed the staff in an e-mail.

Small cap fund Fagron gained 3.5%. The supplier to pharmacies grew strongly last year, especially in North and South America. According to the company, in the second half of the year there was even an acceleration of sales growth on own strength.

Wessanen went down 12.1% after Kempen’s sales advice, including a price target that was reduced from € 11 to € 6.60. The investment bank fears that Wessanen’s biggest brands will surrender market share. Another disadvantage, according to Kempen analyst Thijs Hoste, is that supermarkets put pressure on specialty stores, where the Amsterdam group achieves around 40% of its turnover. Wessanen will report the results for 2018 next Tuesday.

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Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

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