A slight dip for the AEX

The AEX index has had a slightly negative week. The week began calmly, with the main index barely moving until Tuesday. However, Wednesday’s healthy gains were more than wiped out on Thursday by the war in Iran. Ultimately, the AEX index lost 0.4% this week compared with last Friday morning. As a result, the index underperformed the European Stoxx 600, which remained unchanged. At the time of writing (Friday morning), the AEX is trading at around 1,090 points. Within the index, the biggest gains were recorded by SBM Offshore (+7.0%), ASML and Aalberts (both +3.0%). Ahold-Delhaize, KPN and DSM-Firmenich were the stocks with the largest losses, as all three fell by 6.2%.

On balance, better-than-expected figures from the Netherlands

BESI reported very strong order intake, which came in around 18% above expectations. Second-quarter turnover and earnings per share were in line with expectations. Forecasts for the third quarter were around 8% higher than expected and demonstrate that momentum in all things related to artificial intelligence (AI) is continuing.

AkzoNobel’s results were slightly better than expected. This applied to both turnover and adjusted operating profit (EBITDA), as well as to the margin, which improved. The results were achieved in a business climate in which pricing helped Akzo, whilst volumes remained stable.

Randstad’s second-quarter results also appealed to investors. Not only was organic revenue growth better than expected, but underlying operating profit (EBITA) also exceeded expectations. Looking ahead to the third quarter, management reported that the volume growth seen in June is continuing into July.

RELX reported a strong improvement in margins that exceeded expectations. However, growth in operating profit for the first half of the year was disappointing. Organic revenue growth was in line with expectations. Management reiterated its full-year guidance, forecasting strong revenue and profit growth.

Heijmans’ figures were good, with a strong order book and revenue that exceeded expectations. The margin also improved and came in higher than expected. However, the margin will need to pick up in the second half of the year to meet the company’s full-year targets. This seems very likely, given that the second half of the year is generally stronger than the first. Incidentally, Heijmans’ management reiterated the company’s targets for the year.

Signify is facing a more challenging situation, with a market that remains difficult. Nevertheless, turnover was in line with expectations, and like-for-like turnover was even slightly better than forecast. The margin, however, was disappointing and will need to improve in the second half of the year to meet the full-year outlook. Signify’s management did, however, maintain these targets. The main pain lies in the consumer market, where margins are at historically low levels. Finally, net profit was significantly lower year-on-year, due to restructuring costs incurred.

In brief, other corporate news included reports that WSP Global is said to be interested in Arcadis. Furthermore, Nvidia acquired a 9.3% stake in Nebius.

A busy week ahead

The next two weeks mark the absolute peak of the earnings season. Among the major companies reporting next week are Microsoft, Meta, Apple and Amazon. In the Netherlands, Philips, ASM International, Unilever, ING, Shell, ArcelorMittal and Aperam are also set to report.

It is also a busy week on the macroeconomic front, but attention will focus primarily on the Fed meeting on Wednesday (no change in interest rates is expected) and the EU inflation figures for July will be released on Friday. Both headline inflation and core inflation are expected to remain stable year-on-year at 2.8% and 2.4% respectively