Weekly Market Movers: Banks – Regional Europe on Top; Credit Services Drop

March 2, 2020

Last week, the sentiment for European regional banks increased 54 points. Banque Cantonale Vaudoise and Intesa Sanpaolo led the category with a sentiment score of 96 and 11 points respectively.

Top Industry: Banks – Regional Europe

Last week, Banque Cantonale Vaudoise published their results for FY 2019. BCV Group’s revenues rose 3% to CHF 1.0bn despite the negative-interest-rate environment. At the next annual shareholders’ meeting on 30 April, BCV’s Board of Directors will recommend a CHF 1 increase in the ordinary dividend, to CHF 36 per share.

Intensa Sapolo offered a $4.9 billion EUR bid to acquire its smaller peer UBI Banca aiming at creating the 7th largest banking group in the Eurozone with focus on asset management and insurance. Reuters reported that Intensa Sapolo hired JP Morgan, Morgan Stanley, UBS and local broker Equita SIM to complete a team of advisers led by Mediobanca.

Flop Industry: Credit Services

Meanwhile, Credit Services was the worst-performing industry with a sentiment drop of 48 points. Mastercard Inc. and The Western Union Co ranked bottom with a sentiment of -20 and -11 respectively.

Mastercard said that its Q1 revenue might be impacted from the coronavirus outbreak if the situation continues. The revenue growth is expected to be between 9% – 10% for the current quarter. The company’s shares were down nearly 3% in extended trading.

The share price of The Western Union Co. dropped 10.09% last Friday, which was bigger than the S&P 500 drop on the same day. The company announced earlier that remittances can no longer be sent to Cuba from third countries, leaving only the possibility of doing so from the United States. Western Union justified its decision because of the difficulties to carry out this type of operations, in an apparent reference to the embargo that Washington imposes on Havana.

Notes

1 Companies that contributed most to last week’s industry sentiment change.

2  Top trending event related to the respective company.

3  Weekly aggregated company sentiment score (ranging from -100 to +100).

4  Weekly aggregated company attention buzz (the percentage by which the number of news, blogs and tweets about an asset deviates from normal attention).

*Industry name and classification as per Morning Star

Have a closer look at this week’s winners and losers.