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Russia-Ukraine, here are the most bombed stocks on the stock exchange

Russia-Ukraine, here are the most bombed stocks on the stock exchange

Geox, Brunello Cucinelli, Unicredit and more. All the Italian stocks most affected by sales on the stock exchange due to the Russia-Ukraine crisis. Facts, numbers and analysis

Effect also on the stock exchange due to the crisis between Russia and Ukraine.

The Russian attack on Ukraine had an immediate effect on financial markets , which are extremely sensitive to geopolitical turmoil. The minus sign was recorded on all European stock exchanges: Frankfurt lost 3.3%, Paris 3.1%, London 2.4%.

Among these on the Stock Exchange, the worst is Milan, which marks a minus 3.5% . Asian stock exchanges are also very bad: Hong Kong drops 3.2%, Seoul 2.6%, Tokyo 2%, Shenzhen 2.2% and Shanghai 1.5%. The war in Ukraine also affects the Australian markets: the price list lost 2.99%, while the New Zealand one lost 3.62%.

Bag, Milan black jersey

Piazza Affari is the stock exchange that has felt the most the weight of this first day of Russian attack due to the more exposed stocks towards Russia and Eastern Europe, such as Unicredit, Pirelli and Buzzi submerged by sales .

The point on the Milan Stock Exchange

Stock market still in sharp decline after the negative start of the session on Wall Street. The Ftse Mib index goes back only a few fractions of a point, and now marks -4.51% at 24,784 points. In Piazza Affari, the decline affects Unicredit (-12.8%) together with other banks such as Intesa (-8.4%), Bpm (-8.5%) and Bper (-7%). Pirelli sells 10.7%. They keep Eni (-0.2%) and Snam, Saipem rises by 1.3%, Terna by 1.7%, Leonardo at + 3%.

Geox: the most affected stock on the stock market

The most affected title is the Geox title. The shares of the group founded by Mauro Moretti Polegato suffered a decline of up to 15.2% . The quality footwear company generates about 8% of its revenues in Russia. Another title in the stock market cyclone due to the crisis between Russia and Ukraine is Brunello Cucinelli , a high-end clothing brand, for which the weight of Russia amounts to 5% of turnover, which drops 6.6%.

Deep red of bank stocks on the stock exchange

The Italian banks, together with the French ones and, secondly, the Austrian ones, are the most exposed to Russia. Unicredit fell by 5.44% , Intesa Sanpaolo by 5.19% , Banco Bpm by 4.26%, and Mediobanca 3.05%. Italian and French institutions are exposed to Russia for over 30 billion dollars , about 26.5 billion euros, for Austrian ones, the exposure is around 22-23 billion dollars. The data comes from a research by Credit Suisse , which processed data from the Bri, the Bank for International Settlements, dating back to June 2021. The highest exposure is that of the Austrian bank Raiffeisen Bank International with a 20% revenue share. in Russia and with a loan amount of 10.5 billion, including Ukraine. Next is Societè Generale, which has a 4% share of revenues in Russia with 8.7 billion in loans.

Unicredit in Russia, the third largest bank by exposure

The third bank by exposure is Unicredit , present in Russia since 2005. The bank has around 2 million retail customers and around 30,000 corporate customers , with a network of 72 branches that provide around 8 billion euros in loans. In 2021, the Russian subsidiary earned the Unicredit group about 180 million in profits, a small part of the total 3.9 billion; it accounts for approximately 3% of the interest margin and 3% of the allocated capital.

Intesa Sanpaolo's interests in Russia

Intesa San Paolo shares fell 5.19%. The activity of the Piedmontese Institute is very intense: it carries out most of the Italian investment operations in Russia and Russian investments in Italy , and is an important investor and partner in many Russian, national and international projects. Banca Intesa Russia has 28 branches and 976 employees, with assets of around € 1 billion.

Intesa Sanpaolo's analysis: Italian companies with exposure in Russia

Intesa San Paolo itself examined the exposure to the Russian market of all the Italian companies under its cover. Few of these, as reported by MF-Milano Finanza , have a significant exposure equal to or greater than 10 per cent . For Eni, Elica and Aeffe, exposure to the Russian market is worth 2 per cent of revenues. Moncler, Safilo and Triboo are under 2 percent. Salvatore Ferragamo is under 1 percent. The exposure of Brunello Cucinelli , at 5 per cent, and of Campari, at 3 per cent, is higher; De Longhi is at 6 per cent, Geox at 8.

The decline of Maire Tecnimont and Buzzi Unicem

Among the groups exhibited in Russia is Maire Tecnimont , an Italian engineering company focused on the energy sector, which generates 25% of revenues in the country. Today it loses 7.9% of revenues . The company was awarded a 3.4 billion contract to build a gas processing site in the Amur region in 2017. The project – defined as one of the largest in the world – is being carried out by Gazprom and the funds have been provided, among others, by the Russian state banks Sberbank and VTB. Institutions that the United States could sanction. Buzzi Unicem , a huge cement producer group, has a 10% share of revenues in Russia, today it is down by 9.4% . Mo-Fr also have many interests in Russia with 7.6 per cent, which loses 0.90%, Recordati with 4.5, which leaves 2.20% on the ground. Pirelli is at 3 percent and loses 0.57% while Comer at 2 leaves 0.80%, Interpump at 1.5 loses 1.46.

Energy companies

As regards energy companies such as A2A, Acea, Enel, Hera and Iren, according to Intesa Sanpaolo the impact they would feel will depend on the gas procurement activity in Europe, which could decrease. “As for Enel”, writes MF , “the bank believes that the company may be affected by the same considerations, beyond the group's activity in Russia, equal to 0.4% of consolidated turnover / EBITDA”.

Saipem does not feel the war

For the moment, the stock of Saipem , an energy technology company, very active in Russia , does not seem to have been affected by the war. The Italian company is involved in the Arctic LNG 2 project on liquefied gas , developed together with Novatek (the first liquefaction train should go into operation in 2023), for a value of 3.3 billion euros. Saipem is working with Gazpromneft , a company of the state-owned gas group Gazprom, on the construction of a new plant in the Moscow refinery.

Trade and financial relations between Russia and Italy

Russia represents 1.5% of our exports of goods (compared to 2.7% until 2014, the year of the first sanctions for the annexation of Crimea), affecting over 11 thousand companies, and 3% of imports ( 5.2% pre-2014). Russia also hosts 2.4% of the Italian stock of capital invested in the world, as stated in an internal Confindustria document unveiled by Start Magazine . Italian capitals have built 442 subsidiaries that employ about 34.7 thousand people and produce a turnover of 7.4 billion euros, growing on average by + 7.5% in the last six years, much more than what happened to the subsidiaries in the countries. non-EU countries (+ 2.2% in the same period) and in the United States (+ 5.2%), the first non-EU country for the presence of Italian multinationals. Russian capital invested in Italy has a much smaller weight , just 0.1% of the total stock received by our country; Russian multinationals represent only 0.3% of foreign multinationals on the national territory and produce just over 1% of turnover, for an amount exceeding 8 billion euros.

(article updated at 4 pm on February 24, 2022)

This is a machine translation from Italian language of a post published on Start Magazine at the URL on Thu, 24 Feb 2022 13:43:34 +0000.