After the heavy sales pressure at the start of the week, the AEX will be able to surpass the coronak on Tuesday. Investors see bread to pick up Unibail and chip funds. ING can also count on considerable buyer interest. Air France KLM is given wings in the Midkap.
The AEX ended 1.3% higher at 617.50 points. On Monday, the most important Amsterdam stock market measure was still 2.5% slipped away. The AMX rises 0.9% to 926.2 points.
Other European fairs are also still showing a good recovery. The British FTSE, the German DAX and the French CAC 40 win up to 1.4%,
According to Joop van de Group, asset manager at Fintessa, there was a startle reaction among investors on Monday because of the fear that the new variant of the coronavirus might be a longer- and heavier lockdown in the hand work and would cause an economic slowdown. “Underlying, however, the sentiment of the reservoir of money is still positive, so every dip is used to buy again.”
The news that the European Union has rejected the British proposal on the regulation of fisheries does not make any impression. Brussels announced its intention to make another ‘final’ attempt to smooth the negotiations on a Brexit deal. Rein Schutte, investment advisor at Noesis Capaital Management, emphasizes that there is still a chance to conclude an agreement just before the end of this year. He points out that most companies in recent years have already set up for British departure even if there were no Brexit deal. “It is mainly the transport sector that has to endure heavily.”
British Prime Minister Boris Johnson has overplayed his hand by insisting on the importance of regaining sovereignty over his own water, says Van de Groep. “It looks like Johnson got a tap on his fingers from Macron. However, due to the other major events this year, Brexit is not so dominant for investors anymore.”
Little fireworks expects
Schutte assumes that towards the new year there will be little fireworks on the stock markets. “Trade volumes are already decreasing. There is not much important left on the agenda outside the Brexit. The prospect of central banks not going to take back gas in boosting the economy remains positive for equities. There may be even more in the barrel for cyclical shares, such as ArcelorMittal. It is also waiting for the annual figures that can move volatility in the first quarter.”
The Group foresees that the AEX will move sideways for the time being. “It is still unclear how hard the economy will come to a halt in the fourth quarter due to the new lockdowns and the impact that will have on the results of companies. The trends such as the massive switching to online payment will continue next year.”
Among the Dutch main funds Unibail-Rodamco-Westfield is at the top with a plus of 3.9%. On Monday, the retail property fund went down, in response to the UK lockdown and travel restrictions.
Chip funds do good business in the late afternoon trade supported by the animo at US tech funds and Apple in particular after the news of wanting to build an electric car. ASML and ASMI rates 2.8% and 2.3% higher respectively.
Financial institutions are also in demand following the improved sentiment among US industry partners after the Federal Reserve has eased its own share buy-back rules. ING, ABN Amro and Aegon win up to 2,5%.
Payment processor Adyen climbs a further 2.1% and thus gets a price of €2000 in sight.
Shell is recovering 0.2% after the hit on Monday in response to a win warning. The Group underlines that, in the short term, the oil giant may still be difficult in view of the weakening of oil prices and tightened lockdowns.
Prosus is among the scarce losers with a minus of 1.8%.
KLM high flyer
Among the medium-sized funds, Air France KLM is leading with a plus of 4.9%. KLM top man Pieter Elbers, in an extensive interview with De Cceit, calls it very frustrating that the airline is now being hampered by the ban to and from the UK.
Pharming loses 5.7% by profit. The biopharmaceuticals had gone up in the last few weeks. In addition to profit, investors are also a little disappointed that Pharming did not receive a listing on the Nasdaq on Tuesday. The company thinks it will be listed on Wednesday or Thursday at the US tech fair.
Smallcap Sif rises 7.1%, after having won a large assignment for a windmill project off the coast of the Netherlands. The foundation specialist also reports an engineering firm to take over from shipbuilderRoyal IHC.
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