Sales wave at Damrak hurts ING and Aegon in particular
The AEX index is down 1.9% at around a quarter past twelve at 681.84 points, the lowest level since the beginning of March. The Midkap index is also in weak position with a loss of 1.5% to 1022 points.
The stock market indicators in Frankfurt, Paris and London also turn red and drop to 1.4%.
In the Asian region, the main stock markets already fell sharply on Thursday after the heavy price losses on Wall Street a day earlier. The Nikkei in Tokyo ended 2.5% lower, losing about 7 percent in the past three days.
Inflation is fueled by massive support programs from governments and central banks. Investors fear that this will raise interest rates faster than expected in order to counteract money devaluation. Higher interest rates make shares less attractive as an investment.
Jan-Willem Nijkamp, asset manager at Fintessa, emphasizes that it is mainly the fear among investors about US inflation that has triggered the strong selling pressure on prices. However, he points out that the Federal Reserve will not worry about this for the time being. “Underlying sentiment on the stock market is still positive. It is striking that today mainly stocks from the old economy are being sold. ”
For the long term, Nijkamp thinks that large tech funds in particular are still attractive. “It is beneficial that they hardly have any debt, so that rising interest rates have little impact. In addition, it just keeps revolving around the tech trends. For the short term, due to the emphasis on economic events, a slight downward trend is more likely to be expected in the equity markets. ”
Steel and oil cool
In the almost entirely red-colored AEX chip fund ASMI give up ground with a decrease of 2%. Steel concern Arcelor Mittal is also in the rear with a tick of 3.5%. RD Shell is facing a loss of 2.9% in response to slowing oil prices.
Financials are also making a strong retreat. ING loses 4%, while at the bottom of the league Aegon 5.3% sees evaporation.
KPN drops 1.6%. According to the Authority for Consumers & Markets (ACM), the cooperation between the telecom group and pension provider APG does not restrict free competition in expanding the fiber optic network.
Adyen keeps the feet dry with a plus of 0.1%.
Midakpper Pharming falls 9.8%. The corona crisis continues to strongly impact sales of the biotechnology business on a quarterly basis. In the first quarter there was a sharp drop in sales of its main drug Ruconest on an annual basis.
AMG is also under pressure with a decline of 3.3%. Arcadis is undergoing a 2.5% weakening. Boskalis the big winner from the day before, lost 3.4%.
Galapagos is a positive exception with a plus of 0.6%. Earlier this week, the biotech fund was still weak in the market.
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