Utilities run with BTP rallies. Good news is coming: that’s for whom


The excellent intonation shown today by Piazza Affari was also properly exploited by utilities which in many cases performed better than the Ftse Mib index, which rose today by 2.46%.

Utility at the center of purchases in Piazza Affari

In the utility sector, Terna stood out with a rally of 4.18%, followed by Snam and Enel which appreciated by 3.66% and 3.13% respectively, while Italgas and Hera gained 2.83% and 2.58%, leaving A2A slightly behind who closed the day with a 2.21% advantage.

Purchases on utilities today were favored by the good news coming from the bond front.

Utilities aided by BTP buys: rates drop

The BTP-Bund spread, which does not directly impact the sub-fund, continued to decline and fell by 2.84% to 188 basis points.

The drop in BTP yields was very helpful, with the 10-year falling rate of 3.74% to 1.466%.

Utility: interesting news from the European Recovery Pakage

The utilities were well bought also in the wake of the indications received from the European Recovery Pakage, interesting above all for the renewable energy sector.

In a note released today, Equita SIM analysts point out that there is no direct allocation of incentives, but the document establishes fundamental criteria for the allocation of financial resources to support the economy.

Among the measures introduced is the creation of the € 750 billion “Next Generation EU” fund, of which € 560 billion in the form of grants and loans, primarily for investment.

Furthermore, starting from the consideration that the European Green Deal will generate 1% of GDP, creating 1 million jobs and investments equal to 595 billion euros per year, of which 470 for the green transition and 125 for the digital transformation, the document introduces some criteria.

Utility: focus on the criteria introduced

Equita analysts summarized them in the report released today, referring primarily to the fact that the Green Deal is considered to be the European growth strategy.

European measures will aim to prioritize capex greens and 25% of the EU budget will support investments in the climate.

Second, the forthcoming EU proposals will introduce more ambitious emission reduction targets by 2030.

Thirdly, the EU proposals will be aimed at unlocking investments in clean technologies such as RES, energy storage, clean hydrogen, batteries, carbon capture and infrastructure.

Fourth, in addition to the battery alliance, a strategy and an alliance on hydrogen will also be created.
The production of zero emission transport vehicles will be accelerated and the European Union will support the installation of 1 million charging points.

Finally, a border taxation mechanism against carbon leakage will be introduced in 2021.

Utility: Equita, here are the titles impacted positively

According to Equita SIM analysts, financing measures linked to green investments are a significant boost for the renewable sector.

As for the securities listed on Piazza Affari, the Milanese SIM sees higher exposures for Is in the, Erg, Falck, Terna (investments in the network).
For the electrical distribution, companies such as Acea (40% of EBITDA) and to a lesser extent Iren and A2A.
Hera is exposed on the circular economy, while the development of hydrogen could be a positive catalyst for Snam and to a lesser extent for Italgas.

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