The FTSE MIB climbed more than 1% to around 51,300 on Friday, setting a new record high, as banks and insurers extended this week’s rally on speculation of a possible bidding war for Banca Monte dei Paschi di Siena. The renewed interest in Monte Paschi buoyed sentiment across Italy’s financial sector, with investors betting that a potential deal could revive broader M&A activity, accelerate sector consolidation, and unlock further valuation upside.
Among the standout performers, Mediobanca and Monte Paschi each advanced more than 3%. Other notable gainers included UniCredit (+2.2%), Intesa Sanpaolo (+2.7%), Assicurazioni Generali (+1.2%), Banco BPM (+1.5%), BPER Banca (+1.9%), and Unipol Gruppo (+2%).
Market mood was additionally supported by reports that US President Donald Trump said a US–Iran agreement was close and that he had called off planned military strikes against Iran. For the week, the benchmark index remains on course to post a solid gain.