The AEX index ended 0.1% lower at 559.73 points. The stock market indicator thus recorded a wonderful quarterly profit of 15.8%. The AMX thickness 0.5% at 751.14 points.
Elsewhere in Europe there was also little movement. The Paris stock market fell 0.2%. The indicator in Frankfurt won 0.2%
A strong rebound in confidence among US consumers supported sentiment in late afternoon trading. Confidence also clearly rose faster than anticipated.
A warning from the World Health Organization (WHO) that the worst of the corona pandemic is yet to come caused some reluctance at the outset. In addition, the adoption of the controversial Hong Kong security law in the Chinese parliament fueled fears that trade tensions between America and China would flare up. Jan-Willem Nijkamp, asset manager at Fintessa, emphasizes that there is certainly a risk that China will continue to clash with America, which has already had its hands full with keeping the corona virus in check, as its policy continues in Hong Kong. “This is how hospitality businesses are closing again in Arizona.”
Nijkamp points out that the new figures season, which starts in mid-July, is particularly important for sentiment in the coming months. “There has been a large discrepancy between prices and corporate earnings. For example, in the second quarter in America, profitability for companies in the S&P 500 is expected to fall by 43%. The results of American banks can already provide a good indication, especially with regard to the height of the sling pots. We take into account that after the good course of events in the second quarter there may be a dip. ”
Technology values are a favorite of Nijkamp in the second half of the year. “Certainly if there is a second corona wave, it is advisable to hold on to technology funds. In addition, Shell was hit hard in the first half of the year, partly due to the cut in the dividend, to recover in the expectation that the demand for oil will increase, especially due to the increasing use of cars. ”
According to Jos Versteeg, analyst at InsingerGilissen, after the very turbulent first six months of 2020, there is reason to look at stock markets with a positive outlook in the next six months. “The expectation that interest rates in the US will remain very low for a long time will support the rates. That’s why you have seen growth stocks doing well lately. My preference is mainly for technology funds, partly because of the continuing strong demand for cloud services and for companies active in the healthcare sector. The incalculability of President Trump towards the elections is a risk factor, but in the long term it probably has little effect on the stock market climate. ”
Dived into the AEX Royal Dutch Shell 3,1% down after the warning that much less oil and gas was sold in the second quarter. Due to the plummeting demand because of the corona pandemic, the energy company depreciates between $ 15 and 22 billion on the value of its assets. Versteeg emphasizes that despite the sharp rebound in recent months, Shell is still severely affected by the relatively low oil prices. “An oil price above $ 60 a barrel is also no longer to be expected as the oil market has fundamentally changed with the emergence of US shale oil, which is also increasingly cheaper to produce.”
Bank shares took a step back after recovering from a day earlier. ABN headed 1.9% lower, while ING 1% had to give up. Unilever was also in the rear with a loss of 1.2%.
Relx 1% slipped. The information provider received a recommendation reduction from Exane BNP Paribas for choosing to underperform. The asset manager also lowered the price target for the Relx share from € 21 to € 18.05.
Prosus gained 4.1% after well-received results. The tech investor achieved a higher profit and turnover in the broken financial year closed at the end of March. CEO Bob van Dijk said he is confident that Prosus will emerge well from the corona crisis and that it will probably benefit from the further increasing ecommerce in the world.
Leader ASMI also performed well with a plus of 5.9% at a record level of € 137.55 supported by better than expected forecasts from US chip companies Micron and Xilinx. They indicated that the demand for chips shows a recovery. Healthcare technology group Philips was worth 1.5% more.
In the AMX made the lead PostNL a price jump from 8.6% to € 1.89. ING increased its price target for the share from € 2.75 to € 3.25 with unchanged buying advice. Chip supplier Iron was allowed to credit 4.4%.
Basic-Fit Sat on the rise with 3.8% progress after Morgan Stanley put the fitness chain on the buy list, including a price target of € 30. According to the investment bank, the income of the gym chain will recover more quickly to the level before the corona crisis than, for example, the catering industry. In addition, Morgan Stanley is pleased with the scale of Basic-Fit, its network of gyms in good locations, low costs and a solid liquidity position.
BAM ended up with a price drop of 4.1% at the bottom. The construction group reached a settlement with the city of Cologne because of the many problems surrounding the construction of a metro line in the German city in 2009. The city archive collapsed at the time. Because of the scheme, BAM will take an amount of € 40 million as an extraordinary expense this year. KBC Securities analysts spoke of ‘a negative surprise’.
Air France KLM lost 2.5%. Subsidiary Air France would like to cut more than 7,500 jobs through 2022.
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