Before the bell: Thou shalt not disappoint

Many heavy losers on the stock markets, but the BEL20 and precious metals remain a golden duo

Precious metals are already trading almost back at the level from which they made a short but sharp drop. Gold is flirting with the 5,000-dollar-per-ounce mark, as if to confirm that this price level is the new normal. But is it also normal that the BEL20 reaches a new high day after day? Yesterday, the Brussels index climbed another 0.7%. As a result, the benchmark is now already 8.3% higher than at the start of the year. Umicore (+3.4%), Ageas (+2.8%) and Ackermans (+2.3%) led the way. The Antwerp-based holding is benefiting from the continued rise of its “subsidiary” DEME (+5.3%). Since the beginning of the year, this “builder on water” has already gained 24.5%! Elsewhere, and especially on Wall Street, there was a lot of red. Big tech names such as Nvidia (-4.3%) and Microsoft (-3.1%) slid, while software companies like Salesforce (-7.6%) were further dumped amid fears of additional competing products using AI. Companies that come out with disappointing results—even if they are only slightly worse than expected—are being punished. Those that also disappoint with their outlook receive no mercy. Anyone forced to confess to both, like PayPal yesterday, gets a 20% beating. Cheap valuations or net cash positions are proving to be no mitigating circumstances for sellers.

After yesterday’s strong rally, Asian markets are taking it easy today. Indices in both Tokyo and Hong Kong are up 0.3% this morning. Today brings another round of results from major companies such as UBS, Banco Santander (which announced a US acquisition yesterday), Crédit Agricole, GSK and Infineon. In the US, we will see figures from, among others, Alphabet, Arm, Eli Lilly and Uber.

Copenhagen becomes “Sell-hagen” today

Normally, Novo Nordisk (-14.3% on Wall Street) was only due to publish results today. But this once rock-solid and smoothly running Danish company has been making a mess of things for some time now. Yesterday, after the European close, Novo Nordisk announced that fourth-quarter revenue fell by 2%, while operating profit was 4% lower than last year. Worse still: the Danes expect revenue to fall by 5 to 13% in 2026, with the same forecast applying to operating profit. The weak outlook is entirely due to the US market, as Novo Nordisk expects growth elsewhere. The main reasons are competition and price pressure, while in some markets certain drugs are also nearing patent expiry. The share, which is also listed in the US, promptly lost 14% on Wall Street. Today, sellers in Copenhagen will be joined by, among others, “Piggy Bank” Jan. Even Eli Lilly was rattled and fell 3.9%.

Melexis grows again, but less than expected

In the final quarter of 2025, Melexis managed to grow revenue by 8%. Operating profit rose 14% to €31.5 million. This is well below analysts’ expectations. It does represent an improvement compared with the full-year performance, during which revenues declined by 10% and operating profit even by 39%. The high gold price has a negative impact, as a very small amount of gold is used in production. Melexis says conditions in the automotive sector remain “erratic and unstable,” but does expect a gradual improvement over the course of 2026. Revenue in the first half of the year will be around the same level as in 2025. In the second half, revenue should start to grow. Melexis says it feels commercially strong and sees opportunities in China, Europe and South Korea. Over the longer term, management also expects a dynamic market in India. On 19 May, a final dividend of €2.4 will be paid, bringing the total dividend for 2025 to €3.7.

Did you know that…

A survey by Bank of America among fund managers shows that they are holding very little cash? This means that if end investors sell their fund units, selling pressure could arise very quickly.