Weak benches close door to AEX upturn

The AEX had to give up slightly on Friday after a cautious upturn earlier in the day. The weakness of the banks in particular played a part in the sentiment. Unilever also had a worse day. Investors threw real estate back on sale.

After Thursday‘s heavy loss, the AEX index ended 0.3% lower at a score of 550.85 points. The Midkap index lost 0.7% at 819.57 points.

Elsewhere in Europe the signs also turned red: the exchanges in Paris, London and Frankfurt lost up to 1.2%.

According to Jan-Willem Nijkamp, asset manager at Fintessa, there has been a lot of reticence among investors lately. “Economic recovery in the US, for example, is not proceeding as quickly as expected. The lack of new corona support from the US government plays an important role in this. It was also taken into account that the Fed would hint at extending monetary stimulus when deciding on interest rates. Furthermore, the number of corona infections in the US and Europe is increasing again and there are still tensions between China and America. The recent sideways movement for the AEX, which is still more than 10% of the annual summit, is likely to continue until there is a new trigger, such as the new accounting season for companies. It remains to be seen to what extent the tech funds will resume their advance after the recent strong correction. โ€

Rein Schutte, investment advisor at Noesis Capital Management, emphasises that expiration in option trading played a role in the price movements on the Damrak. He points out that tech funds, in particular, are in demand again after the sales pressure the day before. “In this newfangled period for companies, many investors are already positioning themselves for the fourth quarter. Although there is no good reason to look up, there is also no reason to be very gloomy despite the fact that the upcoming debates between the US presidential candidates Trump and Biden could have an impact on sentiment from the end of September. From a technical point of view, the most important support for the AEX is 530 points. If this line were to be broken, the trapdoor would open in the direction of 500 points”

Unibail down again

In the AEX, Adyen played the leading role with a thickness of 5.6%. IMCD makes investors happy with an acquisition of a Finnish supplier of fibre-reinforced plastics and composites. The chemicals distributor was rewarded with a 1.8% higher share price.

On the other hand, the weighty funds Shell (-2%) and Unilever (-2.1%) made a strong contribution. Dutch shareholders of the food group will have to give their verdict next Monday on the plans to continue as an entirely British company.

Financial values also came under considerable pressure due to renewed concerns about the impact of the coronavirus. ABN Amro had to surrender 4%. Aegon saw its share price decline by 2.9%. ING faced a loss of 3.5%. Votes would be raised within the European Central Bank (ECB) to allow banks to pay dividends again. Nijkamp stressed the importance for the banks to start paying dividends again to the shareholders. Randstad also belonged to the larger downturns with a minus of 2%.

The bitten dog was again Unilbail-Rodamco-Westfield. After Thursday’s thump, another 10.5% of the stock market value at the real estate company crumbled. The share is just above โ‚ฌ30, an all-time low. At the start of trading, the damage was much greater. According to Schutte, Unibail itself brought the uncertainty to the market due to doubts about whether or not the share issue would go ahead. “Shortsellers were able to make their move as a result Midcap Eurocommercial Properties reported in the malaise and plunged 4%. AScX fund Wereldhave experienced a tick of 9.5%.

In the Midkamp index, Besi was in the vanguard and got 1% more.

On the other hand Air France lost KLM 1.9%, Fugro lost 3.2%.

Investors in stock exchange operator Euronext are pleased that that company is allowed to have exclusive talks about the acquisition of the Milan stock exchange. The fact that new shares will be issued in connection with this apparently makes little difference, as evidenced by the 4.3% higher closing price.

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