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IBERIAN DAILY 12 APRIL (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, ROVI.

Drops ahead of March’s inflation data in the US
Stock markets fell on both sides of the Atlantic at the beginning of the week (with growth underperforming value) as the war escalates in Eastern Ukraine and the US inflation data, to be released today, will continue to determine how tightly the Fed will apply its monetary policy. After the presidential elections, the French CAC was the only index in the Euro zone that closed with gains (+0.1%). Thus, the best-performing sectors within the Euro STOXX were Travel&Leisure and Construction, whereas Energy and Technology were the worst relative performers. In France, Macron is leading the polls to win the second round of the elections with a 5-point advantage after Mélenchon (far left and third in the polls with 22%) made statements in favour of Macron. The OPEC stated that it would be almost impossible to replace Russia’s oil production due to sanctions.
What we expect for today
The European stock markets would open with new drops amid inflation fears and widening debt yields (negative impact on Utilities or Technology, among other sectors). On the positive side, in China, Shangai lockdown would start to be eased (positive impact on oil companies and cyclical companies in general). Currently, S&P futures are down -0.35% (yesterday the S&P 500 ended -0.5% lower vs. the European closing bell). Volatility in the US increased (VIX 24.37). Asian markets are mixed (China’s CSI 300 +0.75%, and Japan’s Nikkei -1.75%).
Today we will learn in the Euro zone April’s ZEW index, in the UK February’s ILO unemployment rate, and in the US March’s inflation data. In debt auctions: Germany (€ 5.5 Bn in bonds due 2024), Italy (€ 6.5 Bn in 12M T-bills).

COMPANY NEWS

ROVI. Accelerated bookbuild of ~1% of the share capital. BUY.
Norbel Inversiones, an instrumental vehicle owned by the López-Belmonte family, founders of ROVI, carried out yesterday accelerated bookbuild of 560,690 shares (~1% of the share capital) at a price of € 67.50/sh., -1.1% vs. yesterday’s close. The sale was aimed at a single institutional investor, with an option to buy another ~1% before the 30th of June. Thus, the 180-day lock-up period for the bookbuild that took place in March’22 (~5% of the share capital; € 64.50/share) was not respected, as it was directed to a single investor and closed at a higher price. Following the bookbuild, Norbel Inversiones’ stake stands at 53.17% (~-9% since June’21). The objective continues to be to increase liquidity, taking into account the that the free-float will be reduced by the share buybacks announced since Nov’21 (4%, of which 1% is in progress). News of limited impact considering the small discount at which the sale has been closed.