Issue link: https://maltatoday.uberflip.com/i/347048
maltatoday, WEDNESDAY, 16 JULY 2014 11 Business Today Money Market Report for the week ending July 11, 2014 Exchange Rates Issue Date: 15-Jul-14 Set: 2 Issue Time: 14:40:54 Value Date: 17/07/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8279 0.7694 0.7734 0.8130 0.7932 United States Dollar (USD) 1.4205 1.3202 1.3270 1.3950 1.3610 Swiss Franc (CHF) 1.2675 1.1780 1.1840 1.2448 1.2144 Australian Dollar (AUD) 1.5154 1.4083 1.4156 1.4882 1.4519 Canadian Dollar (CAD) 1.5255 1.4178 1.4251 1.4981 1.4616 Japanese Yen (JPY) 144.3600 134.1607 134.8523 141.7678 138.3100 Danish Krone (DKK) 7.7900 7.2400 7.2700 7.6500 7.4600 Swedish Kronor (SEK) 9.6700 8.9800 9.0300 9.4900 9.2600 Hong Kong Dollar (HKD) 11.0096 10.2317 10.2844 10.8118 10.5481 Norwegian Krone (NOK) 8.8000 8.1800 8.2200 8.6400 8.4300 New Zealand Dollar (NZD) 1.6141 1.5000 1.5077 1.5851 1.5464 Singapore Dollar (SGD) 1.7645 1.6398 1.6482 1.7328 1.6905 South African Rand (ZAR) 15.1700 14.0981 14.1707 14.8975 14.5341 Czech Koruna (CZK) 28.6300 26.6100 26.7462 28.1178 27.4320 Polish Zloty (PLN) 4.3200 4.0200 4.0368 4.2438 4.1403 Hungarian Forint (HUF) 340.1245 290.6470 301.4681 316.9271 309.1955 Moroccan Dirham (MAD) 12.3530 10.5562 ********* ********* 11.2300 Tunisian Dinar (TND) 2.4200 2.2500 2.2613 2.3773 2.3193 United Arab Emirates Dirham (AED) 5.4992 4.6993 4.8743 5.1243 4.9993 Bahraini Dinar (BHD) 0.5645 0.4824 ********* ********* 0.5132 Gibraltar Pound (GIP) 0.8724 0.7455 ********* ********* 0.7931 Israeli New Sheqel (ILS) 5.0976 4.3561 ********* ********* 4.6342 Kuwaiti Dinar (KWD) 0.4222 0.3608 ********* ********* 0.3838 Saudi Riyal (SAR) 5.6147 4.7980 ********* ********* 5.1043 Turkish New Lira (TRY) ********* ********* 2.8163 2.9607 2.8885 Thailand BAHT (THB) ********* ********* 42.6507 44.8378 43.7441 Chinese Renminbi (CNY Onshore) ********* ********* 8.2382 8.6606 8.4494 Chinese Renminbi (CNH Offshore) ********* ********* 8.2443 8.6671 8.4557 All Chinese Renminbi transactions, irrespective of amounts, are to be referred to Branches or Treasury. Rates shown here are indicative only and are subject to change without notice. The final exchange rate offered by the bank /applied to your transaction may vary from the rate indicated here. Our staff at the Branches or Treasury will be pleased to provide you with exchange rates for your specific transactions. The rates quoted above are against the euro. 20.91 20.99 1308.49 1309.11 GOLD D + 1 SEPA payments and payments sent to countries and in the currencies regulated by the Payments Services Directive (PSD) D + 2 All Other Currencies US Dollars per TROY ounce Value Date Currency Same Day EUR/GBP/USD/CAD SILVER PUBLIC YOUR FIRST CLICK OF THE DAY www.maltatoday.com.mt Regular market closed – 15/07/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap s BOV 34955 72767.880 16 2.120 2.070 2.090 2.120 0.030 2.082 l GO 3317 7359.320 2 2.219 2.218 2.218 2.219 0.000 2.219 s HSB 9000 18012.300 6 2.010 2.000 2.001 2.010 0.009 2.001 s MDS 50903 66173.900 6 1.300 1.300 1.300 1.300 0.030 1.300 l MIA 3200 7358.000 3 2.300 2.299 2.299 2.300 0.000 2.299 t MSI 230 200.100 1 0.870 0.870 0.870 0.870 -0.010 0.870 l RS2 338 845.000 1 2.500 2.500 2.500 2.500 0.000 2.500 l SFC 200 590.000 1 2.950 2.950 2.950 2.950 0.000 2.950 s STUM 102 202.980 1 1.990 1.990 1.990 1.990 0.140 1.990 t G14B 2330 2378.230 1 102.070 102.070 102.070 102.070 -0.020 102.070 t G15F 13000 13572.000 2 104.400 104.400 104.400 104.400 -0.010 104.400 s G16B 38436 42148.920 3 109.660 109.660 109.660 109.660 0.030 109.660 s G17C 74000 82169.600 7 111.040 111.040 111.040 111.040 0.020 111.040 l G18A 5591 7069.260 2 126.440 126.440 126.440 126.440 0.000 126.440 t G19C 2771300 2990232.700 1 107.900 107.900 107.900 107.900 -0.030 107.900 s G20A 17704 21255.420 1 120.060 120.060 120.060 120.060 0.070 120.060 l G20B 66000 76905.300 3 116.530 116.500 116.530 116.500 0.000 116.520 l G21A 177077 212410.780 8 119.970 119.940 119.970 119.940 0.000 119.950 s G22B 188300 216530.000 8 115.000 114.970 115.000 115.000 0.030 114.990 s G28B 303500 341215.520 9 112.430 112.420 112.430 112.420 0.090 112.430 s G30A 40500 48502.800 3 119.760 119.760 119.760 119.760 0.070 119.760 s G31A 50000 58975.000 2 117.950 117.950 117.950 117.950 0.020 117.950 t G32A 136800 150305.450 9 109.900 109.850 109.900 109.850 -0.030 109.870 s G32BA 629000 673674.000 10 107.150 107.100 107.100 107.150 0.020 107.100 t G33AA 3034900 3163042.550 49 104.300 104.100 104.200 104.290 -0.060 104.220 s BV19A 8000 8460.000 2 105.750 105.750 105.750 105.750 0.240 105.750 l BV20A 10000 10301.860 2 103.020 103.010 103.020 103.010 0.000 103.020 s GF21A 10000 10161.000 1 101.610 101.610 101.610 101.610 0.010 101.610 l IG24A 5100 5407.020 1 106.020 106.020 106.020 106.020 0.000 106.020 l IH23A 5000 5175.500 1 103.510 103.510 103.510 103.510 0.000 103.510 l PG20A 10000 10350.000 2 103.500 103.500 103.500 103.500 0.000 103.500 t PG22A 9200 9614.000 2 104.500 104.500 104.500 104.500 -0.490 104.500 l SF20A 3300 3465.330 1 105.010 105.010 105.010 105.010 0.000 105.010 ECB Monetary Operations On Monday, July 7, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, July 8, and attracted bids from euro area eligible counterparties of €94.15 billion, €2.95 billion lower than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.15%, in accordance with current ECB policy. On Wednesday, July 9, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation was carried out at a fixed rate of 0.60% and once again did not attract bids from euro area eligible counterparties. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 273-day bills maturing on October 10, 2014 and April 10, 2015, respectively. Bids of €19.00 million were submitted for the 91-day bills, with the Treasury accepting €8.50 million, while bids of €22.00 million were submitted for the 273-day bills, with the Treasury accepting €3.00 million. Since €5.00 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €6.50 million, to stand at €422.17 million. The yield from the 91-day bill auction was 0.303%, i.e. 1.30 basis points lower than on bills with a similar tenor issued on July 4, 2014, representing a bid price of 99.9235 per 100 nominal. The yield from the 273-day bill auction was 0.488%, i.e. 1.20 basis points lower than on bills with a similar tenor issued on January 10, 2014, representing a bid price of 99.6313 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 91-day bills maturing on October 17, 2014. Market Commentary: Peripheral worries are easing Following a bout of back-to-back negative trading sessions, peripher- al assets, led by the Portuguese 10- year government bonds, recovered some losses on speculation that Por- tugal would contain financial woes at one of its banking groups, Banco Espirito Santo. The bank's parent company had, earlier on this month, announced that it had failed to make some payments on commercial paper, helping trigger declines in Portuguese debt. Banco Espirito Santo stated that I had an exposure of €1.18 billion to companies of GrupoEspirito Santo through loans, securities and other items. The lender also said it has a capital buffer of €2.1 billion above the regulatory minimum following a June capital increase. Peripheral paper started to recover at the end of last week on the back of some more transparency provided with respect to the issues in the Portuguese banking sector – despite this recovery, the market continues to closely monitor any developments in this regard. Meanwhile, German bunds, were little changed after a report showed industrial production in the euro area had declined by 1.1% m-o-m during May. On a macro scale, recent economic data continue to indicate that global growth is expected to accelerate, albeit marginally, over the next two yeas, while inflation and interest rates should generally remain very low. The US and UK are set for a period of fairly rapid growth whilst the large part of the euro- zone countries show that such recoveries would be insufficient to trigger a surge in inflation, reduction in unemployment and, most importantly in the long-term, the reduction of debt burdens. The surprisingly sharp fall in US output in the first quarter was primarily a result of the unusually severe winter and does not suggest that a lasting slowdown is underway. On the contrary, the US recovery could well begin to gain traction as the fiscal drag has eased, household debt has fallen to more manageable levels and property prices have recovered. The next step will be for the labour market to respond after which inflationary pressure could begin to surface, much to the delight of the US bulls. In contrast, the recovery in the euro-zone is pointing towards weak growth, if any, as the growth of industrial production and net exports have slowed, and business surveys have softened. Retail sales and consumer confidence been positive but elevated unemployment levels and the ongoing fiscal squeeze in some countries indicate that a strong recovery is a highly implausible scenario. However, Germany and UK are a different kettle of and are miles ahead of the other EU countries in terms of economic recovery and therefore, continue to provide investment opportunities for what can be termed a bearish outlook for the region overall. All in all, in the coming week, we expect a slightly firmer tone likely helped by this week's Yellen testimony before Congress, coupled with generally solid Q2 results, and likely further encouraging US economic data. Meanwhile, US banks, which report this week, are expected to report a challenging Q2 due to sharply lower trading revenues. Watch out for trending changes in asset management, investment banking and loan growth across the major US banks as Q2 earnings releases could also be a key indicator on the health of the US financial sector which is pivotal for the country's economic recovery. This article was issued by Calamatta Cuschieri, visit www. cc.com.mt for more information. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.