PEERS & MARKETS

It was a very volatile week (from the 9th to the 13th) on the international stock markets (London -0.2%, Paris +1.9%, Frankfurt +1.4%) on the continuing rumors about EU countries debt de-rating by the main agencies.

Piazza Affari (+2.5%) emerged as the best performing Market in Europe thanks to the good quarterly auction of Bot. Italian bonds was placed with a yield down to 2.735%, dropped by a half since last December.

Pirelli Investor Relations

PEERS & MARKETS

Fears about the economy pushed European stock exchanges down, closing over 4 percentage points down on the week 28 June to 2 July 2010 (Milan, -4.4%, London –4.1%, Paris –4.9%, Frankfurt –3.9%). Sales were stimulated by the worse-than-expected US macroeconomic data (unemployment, consumer confidence and property sales). 
Pirelli shares (4% down at € 0.444) fell less than other European auto industry shares (reference index –4.8%) due in part to the positive views expressed by Equita (BUY with a Target Price of € 0.54) and Chevreux (Outperform and a Target Price up from € 0.51 to € 0.55 ), which saw Pirelli Tyre estimates rise against the market trend.  .
The average consensus valuation of Pirelli & C was  € 0.53, with 83% Buy recommendations on a coverage of 21 brokers.
The negative data on the US property market pushed real estate shares down, with Pirelli RE at € 0.322 (-.83%).

PEERS & MARKETS

BCE’s statements last June 10th on monetary policy has helped lessen investors’ fears on the European economy, reflecting positively on the stock market. The Milan stock market closed the week ending June 11th with positive gains of 5%, whereas Paris Stock Exchange rose by 3% and London Stock Exchange by 1%.
The European Central Bank has decided to leave its benchmark interest rate unchanged and supported the banking system by providing maximum added liquidity through fixed rate tender auctions.
Banks, as well as the automobile and building sector showed the best trend (+5% on European Indices).
Pirelli rebounded back to its year high, closing the week at € 0.472 (+4.8%). The positive consensus forecast for Pirelli remains unchanged: target price €0.52 and a buy recommendation on the coverage by analysts (88%).
Pirelli RE also showed slight gains, closing the week at € 0.37 (6.6%) reflecting goods news on a possible amalgamation and negotiation with other real estate companies. Main market peers showed a mixed trend (Aedes -3%, Brioschi -8% and Risanamento +12% due to news regarding the sale of the former Falck di Sesto San Giovanni Area).

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