The principal financial markets were up at the end of the week 11 to 15 October (Milan +1.5%, London +0.8%, Frankfurt +3.2%, Paris +1.7%) buoyed by the prospect of new measures from the Federal Reserve to stimulate the economy.
At sector level, the highest price rises were in the Industrial (+3.3%) and Auto & Parts (+3.9%) sectors.
Pirelli shares performed particularly well, confirming their position among the best stocks on the market. +6.6% to €6.39. Pirelli outperformed the FTSE MIB (+5.1pp) and the European reference index for the industry (+2.7pp vs DJ STOXX Auto&Parts) once again claiming the position of best Blue Chip share of the week (+47.7pp YTD). Mean trading volumes were steady at around 5 million trades.
After the upgrade of the guidance on the full year 2010, 7 brokers (Intermonte, UBS, Chevreux, Equita, Banca Akros, Banca Leonardo, Exane) raised their valuation of Pirelli by an average of €0.07 with a Target Price di €7 . For Intermonte (Outperform a €7.60) Pirelli was able to bridge the gap in value compared to its peers thanks to a continued focus on tyres, and deserves to be traded at premium, given its business positioning. For UBS (BUY at €7) Pirelli’s positive momentum continued, with the presentation of a new industrial plan that is expected to provide good indications for future operational trends, disposals and the efficiency plan.
This was in contrast with its principal European peers: Michelin +4.4%, Continental +6.8%, Nokian -0.6%.
Pirelli RE closed the week at € 0.434, a fall of 7.6%.