Subscription, up to now, of 1.5 billion. RON For Fidelis
Today is the last day to subscribe to this month’s Fidelis government bonds. Retail investors have so far allocated a total of 478 million RON and 216 million EUR, in total 1.5 billion RON. Investors showed a high interest in the euro tranche of government bonds, especially for the one with maturity in August 2028 with an interest rate of 5.45% per annum. To date, this tranche has registered subscriptions of EUR 135 million. After the end of the subscription period, the government securities will be listed on the Bucharest Stock Exchange (BVB), where anyone will be able to trade them. (Source: ZF)
Natural Gas Stocks Exceed 2.4 Bln. Cubic meters
Romania’s natural gas stocks in storage warehouses exceeded 2.4 billion cubic meters on Thursday, with the Minister of Energy, Virgil Popescu, declaring that, by November 1, the 90% target set for the winter of 2023-2024 will be exceeded. Currently, the degree of filling in the warehouses is 76.47%. (Source: Financial Intelligence)
The ECB Raises the Reference Interest Rate by 25 Basis Points
The European Central Bank increased the benchmark interest rate by 25 basis points on Thursday, which will bring the interest rate on the deposit facility up to 3.75%, the highest level in the last 23 years. The measure completes a full year of interest rate hikes in an attempt to combat high inflation. According to the ECB statement, the inflation rate continues to decrease but is expected to remain at a high level in the long term. In June, the annual inflation rate fell to 5.5%, compared to 6.1%, the level recorded a month ago, well above the proposed 2% target of the central bank. Also, the International Monetary Fund declared, this week, that it is likely that the economy in the euro area will grow by 0.9% this year, taking into account a recession in Germany, where GDP is expected to contract by 0.3% . (Source: CNBC)
GDP Growth Exceeds Market Expectations
According to the US Department of Commerce, the US economy showed signs of resilience in the second quarter of 2023, amid better-than-expected GDP growth. Thus, it registered an increase of 2.4% in Q2 2023, above the 2% estimate of the Dow Jones consensus. Excluding the real estate market and the manufacturing industry, the economy has resisted consecutive increases in the benchmark interest rate by the Federal Reserve starting in March 2022. With the pressure on prices decreasing, economists align with the FED’s estimates, according to which the US economy will register a moderate evolution. (Sources: Reuters; CNBC)
OMV Petrom Current price 0.5500 RON (0.36%) MCap 34.2BP/E 3.4160
A day before reporting financial results for Q2 2023, Petrom made the long-awaited announcement regarding the special dividend it will propose to shareholders. Thus, in a report published on Thursday morning at the Bucharest Stock Exchange (BVB), Petrom revealed that it will propose a special dividend of 0.045 RON per share, which means a total distribution of 2.8 billion RON, in addition to the amount of RON 2.3 billion from last year’s profit. This would be Petrom’s second special dividend, after the one in 2022. In other news, several companies, part of the OMV Petrom group of companies, received an important approval for an ambitious project regarding the development of recharging station infrastructure ultra-fast electric vehicles (EV) in Central and Eastern Europe. This project, named “Acceleration of the network of ultra-fast recharging stations in Central and Eastern Europe”, received European funding through the funding program Connection European Facility (CEF). The total investment for this initiative is estimated at approximately EUR 40 million, of which approximately EUR 15 million will come from CEF European funds, and nearly EUR 5 million will be secured through a bank loan granted by Banca Comerciala Romana. The rest of the financing will be provided from the own sources of the companies involved. (Sources: BVB (1); BVB (2))
Hidroelectrica Current price 112.00 RON (0.09%) MCap 50.3BP/E 10.28
The largest electricity producer in Romania is in the process of obtaining legal approvals for the construction of an electricity storage facility for the Crucea Nord wind farm in Dobrogea. Hidroelectrica opted for the installation of a storage system with dry battery batteries, in lithium-ion technology. According to the documentation, the storage facility has a nominal power of 1.2 MW. The value of the investment is approximately RON 7 million. Due to the fact that the wind farm is obliged, by the regulations in force, to operate permanently at 99% of capacity, this caused a financial loss of over 1.9 million EUR in the period 2015-2022. (Source: Profit.ro)
Intel Corporation Current Price USD 34.67 (0.90%) MCap 146B
Intel reported its second quarter financial results last night. The company posted a profit again, after two consecutive quarters of losses, and issued a forecast above Wall Street’s expectations. The share price registered an increase of 7% in the after-hours session. Revenue fell 15% compared to the same period in 2022, marking the 6th consecutive quarter of contraction. The CEO, Pat Gelsinger, said during the conference call with analysts that Intel still expects persistent weakness in all its business segments until the end of the year. (Source: CNBC)
Southwest Airlines Co Price 32.95 USD ( -7.13% ) MCap 19.4BP/E 29.60
Southwest Airlines reported mixed financial results for the second quarter of 2023, sending its shares down more than 6% in Thursday’s trading session. The airline faced challenges related to a drop in unit revenue and higher costs in the three months ended June 30. One of the key factors impacting Southwest’s financial performance was the 8.3% decline in unit revenue in the second quarter compared to the same period last year. The airline mentioned that this comparison with this decline compared to the very good period of 2022 is quite controversial, considering the abnormal increase in demand following the relaxation of the COVID-19 restrictions. Looking ahead, Southwest Airlines projects a potential decline in unit revenue of up to 7% in the third quarter. (Source: CNBC)
Mastercard Inc Current Price USD 397.76 ( -0.43% ) MCap 378B P/E 39.23
American financial services company, Mastercard, reported a 14% increase in operating income in Q2 2023 compared to the same period last year. Also, net profit increased by 25% resulting in net earnings per share (EPS) of $3. The increase is mainly due to the payment network and services and solutions with high added value. Despite a high inflation rate, Mastercard customers continued their spending pace, especially in the area of entertainment and travel, translated into increased profitability in Q2 2023. (Source: Reuters)
Mcdonald’s Corporation Current Price USD 297.08 (2.16%) MCap 215B P/E 31.36
McDonald’s exceeded analysts’ expectations in the quarterly report on revenues and profits, published on Thursday. The company’s strong performance can be attributed to the recovery of its sales in China and the effectiveness of its Grimace mascot in driving visits to its US locations. McDonald’s impressive second quarter financial results reflect a significant increase in net income and net sales compared to the same period last year. The fast-food giant reported net income of $2.31 billion, or $3.15 per share, which was a substantial increase from $1.19 billion, or $1.60 per share, a year earlier. During the quarter, McDonald’s implemented a corporate restructuring plan, which involved layoffs and compensation for some employees in April. The restructuring generated costs of USD 18 million. However, if these expenses and other items are excluded, McDonald’s achieved adjusted earnings per share (EPS) of $3.17. (Source: CNBC)
SHELL PLC Current price EUR 28,000 ( -1.06% ) MCap 201B
Oil giant Shell reported Q2 2023 financial results. The company reported a net profit of $5.1 billion, below analysts’ expectations of $6 billion. The company also increased its quarterly dividend by 15%, to $0.33/share, while also announcing a $3 billion share buyback program. Shell will continue its balanced energy transition strategy by investing up to USD 15 billion in the next three years in projects with low carbon emissions. (Source: CNBC)
Volkswagen Ag Current price 147.50 EUR ( -1.37% ) MCap 67B
Volkswagen reported an adjusted operating profit of EUR 5.6 billion for the 2nd quarter, below the expectations of polled analysts. Cash flow collapsed by 72% to EUR 226 million. For the current year, the German manufacturer confirmed its financial projections, but slightly reduced its estimates regarding the number of vehicles to be delivered, to 9 million compared to 9.5 million previously. Volkswagen’s announcement comes in the context where the direct competitors from Europe, Mercedes, Stellantis and Renault, have recorded margins and results above expectations. Volkswagen shares fell more than 4 percent in Frankfurt after the quarterly report was released. (Source: Bloomberg)
Novo Nordisk A/s Current price USD 157.28 ( -0.08% ) MCap 357B
Medicines to treat obesity have not been included on the WHO (World Health Organization) list of essential medicines, but treatments for diseases such as Ebola and multiple sclerosis will be included, according to documents published by the UN. Medicines to treat obesity, specifically targeting the active ingredient liraglutide in Novo Nordisk’s drug Saxenda, were proposed earlier this year for inclusion on the WHO list, but without success. The WHO rejected the proposal, citing “uncertain clinical benefit and long-term safety in this patient population,” amid concerns about the potential suicide risks the drugs could pose. (Source: Reuters)
This factual presentation is made by the Analysis Department TradeVille. The quotations shown are those at the end of the previous trading day. Investing in financial instruments involves specific risks; past performance is not a reliable indicator of future results. Acquisition costs and currency fluctuations can influence investment returns.
There is no risk-free financial instrument (read). SSIF TradeVille SA, Calea Vitan no. 6A, Bl. B, Tronson B, et. 3, Bucharest, +40 21 318 75 55, [email protected]. CNVM authorization 2225/15.07.2003. Regulated by ASF. Brasov Agency: (read).
2023-07-28 07:00:31
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