Mps alone will have no future. Word of the Stock Exchange
What the stock exchange day says about Mps. Facts, numbers, reconstructions and contradictions (of those who support the goodness of a stand-alone plan for the public MPS)
Black day on the stock market for Mps
Deep red for Mps on the stock market with both the stock and the bonds. Here are the effects on the markets of the halt to the negotiations between Unicredit and the Ministry of Economy (controlling shareholder of Monte dei Paschi di Siena). All the details.
HOW IS THE MPS TITLE GOING ON THE STOCK EXCHANGE
The MPS share was under pressure at the opening of the session on Monday 25 October after the institute in Piazza Gae Aulenti and the Ministry of Economy and Finance (MEF) announced the interruption of negotiations relating to the potential acquisition of a defined perimeter of Rocca Salimbeni.
THE FLEXION OF MPS
Banca Mps moves downwards with prices aligned at 1.017 for a 5.13% drop. The stock trades regularly at 9.24, having first hit the price at 9.11 and pending higher before and after that time. It had marked a theoretical fall of over 11% previously.
COMMENTS AND CONTRADICTIONS
“Everything as expected”, wrote Teleborsa about the collapse of the MPS stock. In truth, if it was really expected, today's stock market trend belies all those observers (and the vast majority of politicians) who attest to the goodness of a stand-alone plan for Monte dei Paschi, as repeated by the current top of the wrecked bank. So how can we reconcile the end of the negotiations with Unicredit and the bad performance of the MPS stock on the Stock Exchange? It does not reconcile: the market attests that MPS will have a short and troubled life without a merger, in fact.
MPS BONDS DEEP
The four subordinated bonds issued by Mps also collapse, for a total value of € 1.75 billion. On Monday morning, the four subordinated bonds issued by Mps, for a total value of 1.75 billion euros, sold between 13% and 19.4% on fears of a possible burden sharing (literally: burden sharing, one of the procedures envisaged in the EU states in the event of a hypothetical bank failure) in the event that Monte Titoli, in the absence of investors willing to subscribe to the increase with the State, should be secured with a precautionary recapitalization. "But it must be said immediately that these securities are not directly purchasable by private savers", cbiosa Corriere della Sera .
THE NUMBERS OF THE BOND
The 750 million bond maturing in 2028 loses 16.8% and trades just over 60% of its nominal value, the 300 million bond maturing in 2029 falls by 13% to 84.5, the 400 million bond maturing in 2030 collapses by 19.4% to 63.4 and that from 300 million with maturity in 2030 by 18.9% to 66.
SCENARIO?
Perhaps to try to cushion the negative news and try to give investors a positive scenario, this information was leaked to the agencies: Mps is preparing – wrote Ansa – to present a "very good" quarterly, the best of this' year, capable of significantly increasing the 202 million euros in profits achieved in June. The accounts, the agency reports, will also show "an improvement in the capital situation", with a reduction in the deficit expected in June 2022 compared to the half billion estimated in August, confirming the progress made by the bank, which less than a year ago he forecast a shortfall of 1.5 billion. Finally, MPS could soon also revise the industrial plan to make it more aggressive, in order to snatch the green light, which is still missing, from the EU Commission.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/borsa-mps/ on Mon, 25 Oct 2021 13:23:09 +0000.