Stock exchange update: Brussels one step lower

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(ABM FN) The Brussels stock exchange was down considerably on Thursday and also performed much worse than the surrounding stock markets.

More specifically, the Bel20 index fell 2.0 percent at 2,935.05 points.

On Wednesday, there was still general optimism on the stock markets, prompted by the reversal of the lockdown measures and hope for the development of a corona vaccine. In addition, investors fully rely on the backing of central banks and governments. In Europe, an aid package of EUR 500 billion was approved this week, mainly for heavily affected countries.

In any case, the corona crisis and associated lockdown measures will leave serious economic traces. According to chief economist Ivan Van de Cloot of the economic think tank Itinera, with strongly recovered stock markets we can speak of a “disconnection between the real economy and the financial markets.”

“The stock market conditions become totally absurd if we look at measures such as price gains. Often companies do not even expect any profit at all, but the market is rising. This is alarming. All right, people who oppose this do have the central banks as their opponent. And these can go very far in that, ”said Van de Cloot.

We definitely also see the impact of corona on the American labor market. This afternoon, investors will gain insight into the latest developments with the release of the number of aid applications that were made last week.

German and French preliminary composite purchasing manager indices showed an improvement, but overall sentiment still remains particularly negative. The German composite purchasing managers index for industry and services rose from 17.4 in April to 31.4 in May. In France, this index went from 11.1 in April, the lowest level ever, to 30.5 in May. The index for the currency union rose from 13.6 in April to 30.5 this month.

The provisional composite purchasing managers index will be released in America later today.

Oil prices also rose again, albeit less pronounced than Wednesday. The euro / dollar currency pair was quoted at 1.0974.

Finally, mention that the US Senate on Wednesday approved a bill that could force Chinese companies to list their US stock exchange if they fail to meet US accounting requirements and controls. This, along with President Donald Trump’s regular allegations of coronavirus against China, is a dangerous new cocktail of tensions.

Risers and Fallers

In the Bel20 index, only Sofina and Umicore were able to go green with pluses of 2.1 and 1.9 percent.

Gilead Science and Galapagos achieved positive results with their placebo-controlled study of the drug filgotinib in patients with ulcerative colitis. The study examined 1,348 adult patients with moderate or severe ulcerative colitis, a disease that causes the colon to become chronically inflamed. According to Jefferies, especially the high dose tests were positive, but the lower dose results were less convincing. The stock went 7.0 percent lower on the news. “I understand the disappointment,” analyst Jos Versteeg of InsingerGilissen told ABM Financial News. With treatment, the hope is that this will have an effect at a low dose, and this now seems not to be the case with filgotinib in ulcerative colitis, he explained.

Sector colleague Argen-X also did not do very well with a loss of 3.1 percent.

In the second row Atenor gin 0.9 percent higher, but on the other hand, Leasinvest dangled with a loss of 5.7 percent.

With the small shares of the BelSmall index, it was once again biotech that hit the clock. Acacia Pharma recorded a profit of 10.2 percent. Celyad was on the other side with a minus of 1.9 percent.

ABMFNABM Financial News; [email protected]; Editors: +31 (0) 20 26 28 999.

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