Chip companies ASML, ASMI and Besi were among the main decliners on the Amsterdam stock exchange on Monday. The shares came under pressure following a breakthrough announced by Google last week. Analysts told Bloomberg that the development could reduce demand for certain types of storage, and therefore for related chips.
ASMI and ASML finished at the bottom of the AEX index, falling by 3.1 and 3.0 per cent respectively. Besi dropped by 0.4 per cent. Google said its new TurboQuant technology can reduce the amount of memory needed for large language models such as chatbots. The technology is intended to make the use of artificial intelligence more efficient.
Despite the ongoing conflict in the Middle East entering its fifth week, sentiment on the Amsterdam exchange remained cautiously positive. The AEX index closed 0.4 per cent higher at 964.48 points, after a 1.1 per cent decline on Friday. The MidKap rose 0.5 per cent to 949.11 points. Other European markets in Frankfurt, Paris and London recorded gains of up to 1.4 per cent.
US President Donald Trump threatened to destroy Iran’s Kharg Island if Tehran does not quickly agree to a deal. He also demanded the immediate reopening of the Strait of Hormuz for shipping. The strait is a key route for transporting oil from the Middle East.
Oil prices rose again on Monday. The price of a barrel of US crude increased by 2.4 per cent to 102.02 dollars. Brent crude, however, fell by 0.7 per cent to 111.80 dollars per barrel. In Amsterdam, Shell shares climbed 1.9 per cent.
Among the gainers, chemical distributor IMCD led the AEX with a rise of 4.9 per cent. Universal Music Group (UMG) added 4.1 per cent. The music company behind artists such as Billie Eilish, Taylor Swift and Harry Styles announced a 500 million euro share buyback programme to reward shareholders. According to the company, the move reflects confidence in its long-term strategy and growth.
Investors face a shortened trading week. European stock exchanges will be closed on Good Friday and again next Monday for Easter Monday.
@anp | NEWS BRAINPORT
