Before the bell: we’re heading down again

In Asia, yesterday’s gains are already being erased this morning. Meta and Alphabet are being held liable for social media addiction. Sofina will publish its annual report later today.

Wall Street also moved higher yesterday, supported by slightly lower oil prices and the somewhat uncertain prospect of a solution to the situation in the Middle East. However, gains faded toward the end of the session. While the S&P 500 was up just over 1% at the start, only about half of that remained by the close (+0.5%). The Nasdaq gained 0.8%. Amazon (+2.2%) and Nvidia (+2%) posted stronger recoveries. A jury in Los Angeles ruled that Instagram and YouTube are liable for the social media addiction of a young adult. The impact on Meta (+0.3%) and Alphabet (+0.2%), the respective owners of Instagram and YouTube, remained limited. Both companies will appeal the verdict. In Brussels, the Bel20 (+2.2%) had a strong day. Melexis (+4.9%) and Sofina (+4.1%) performed even better. Elsewhere in Europe, Lanxess (+17.4%) and Alfen (+6.1%) stood out, while AMG (+4.7%) and Prosus (+4.5%) were also heavily bought.

Today is shaping up to be a weaker trading day. In Asia, markets are already significantly lower, both in Tokyo (-0.9%) and Hong Kong (-2%). Shipping company Mitsui O.S.K. Lines (+4.2%) is still advancing, and Daikin (+3%) continues to perform well, but Alibaba (-4.2%) is declining, as is Labubu producer Pop Mart (-8.8%). Sligro and Delivery Hero report results today. In Belgium, Exmar and Hyloris publish figures. In Leuven, shareholders of Quest for Growth gather for the general meeting. This evening, Sofina will release its results. Investors are particularly looking for an update on the private equity portfolio of the Boël family holding. On the Amsterdam exchange, Czechoslovak Group (+2.7%) reports results for the first time since the Czech defence group listed in January.

Sleeping beauty

An old aunt and a sleeping beauty—that is how the holding Sofina was sometimes described in the past. The holding is now clearly awake, but investors seem to have dozed off this time, judging by Sofina’s share price chart. As I have said before: I am not concerned about that at all. The Boël family’s investment company does operate in a higher-risk segment, but its selection of private companies is impressive. There are ongoing rumours that both SpaceX and OpenAI may go public earlier than generally expected. With each IPO (initial public offering), a portion of Sofina’s underlying value becomes visible. As a result, more investors become familiar with—and appreciate—the holding. At Spaarvarkens, we already know Sofina well. And we have the patience to harvest returns. I will likely remain a shareholder for another ten years or more.

Alert investors

Gimv has wrapped its headquarters in a Christo-style installation. “An idea from our communications manager,” says CEO Koen Dejonckheere, with a nod to the old Flanders Technology logo. A few years ago, Dejonckheere gave a presentation to several hundred Spaarvarkens members at the Thomas More auditorium in Geel. My introduction of him got off to a poor start. “You said I come from ING. That should be BBL. A big difference.” And also: “Gimv is not a holding, Pascal, but an investment company. ‘Holding’ sounds far too passive.” The tone was set. I first met Koen Dejonckheere in 2004 or 2005, and the encounter was pleasant. He knows what he wants—and who he wants. In recent years, he has built a team that now manages a portfolio of 63 investments. Biotech is being phased out. Unfortunate for the sector, but positive for Gimv. Less speculation, more focus on results. In many ways, it is clear that Gimv no longer has the government as a shareholder. Compare that with SFPIM, the Belgian state’s investment company, where they are now considering appointing Axel Miller as chairman…

Did you know…

that Thailand only a few years ago raised its public debt ceiling from 60% to 70% of gross domestic product? Businessman and former prime minister Srettha Thavisin is now calling for the ceiling to be increased further to 80% of GDP.

This article was translated from Dutch and was originally published on Spaarvarkens.be.