Issue link: https://maltatoday.uberflip.com/i/354989
maltatoday, WEDNESDAY, 30 JULY 2014 11 Business Today Money Market Report for the week ending July 25, 2014 Exchange Rates Issue Date: 29-Jul-14 Set: 2 Issue Time: 14:41:32 Value Date: 31/07/2014 except TND value 01/08/2014 and AED value 04/08/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8268 0.7683 0.7723 0.8119 0.7921 United States Dollar (USD) 1.4011 1.3021 1.3088 1.3760 1.3424 Swiss Franc (CHF) 1.2684 1.1787 1.1848 1.2456 1.2152 Australian Dollar (AUD) 1.4932 1.3877 1.3948 1.4664 1.4306 Canadian Dollar (CAD) 1.5169 1.4097 1.4170 1.4896 1.4533 Japanese Yen (JPY) 142.9800 132.8803 133.5653 140.4148 136.9900 Danish Krone (DKK) 7.7900 7.2400 7.2700 7.6500 7.4600 Swedish Kronor (SEK) 9.5800 8.9000 8.9500 9.4100 9.1800 Hong Kong Dollar (HKD) 10.8583 10.0911 10.1431 10.6633 10.4032 Norwegian Krone (NOK) 8.7400 8.1200 8.1600 8.5800 8.3700 New Zealand Dollar (NZD) 1.6462 1.5299 1.5378 1.6166 1.5772 Singapore Dollar (SGD) 1.7407 1.6177 1.6260 1.7094 1.6677 South African Rand (ZAR) 14.8539 13.8044 13.8755 14.5871 14.2313 Czech Koruna (CZK) 28.7000 26.6700 26.8091 28.1839 27.4965 Polish Zloty (PLN) 4.3300 4.0300 4.0490 4.2566 4.1528 Hungarian Forint (HUF) 341.7752 292.0646 302.9385 318.4713 310.7037 Moroccan Dirham (MAD) 12.2980 10.5092 ********* ********* 11.1800 Tunisian Dinar (TND) 2.4100 2.2400 2.2513 2.3667 2.3090 United Arab Emirates Dirham (AED) 5.4237 4.6348 4.8073 5.0539 4.9306 Bahraini Dinar (BHD) 0.5567 0.4757 ********* ********* 0.5061 Gibraltar Pound (GIP) 0.8712 0.7445 ********* ********* 0.7920 Israeli New Sheqel (ILS) 5.0602 4.3242 ********* ********* 4.6002 Kuwaiti Dinar (KWD) 0.4180 0.3572 ********* ********* 0.3800 Saudi Riyal (SAR) 5.5380 4.7324 ********* ********* 5.0345 Turkish New Lira (TRY) ********* ********* 2.7569 2.8983 2.8276 Thailand BAHT (THB) ********* ********* 41.6523 43.7882 42.7203 Chinese Renminbi (CNY Onshore) ********* ********* 8.0890 8.5038 8.2964 Chinese Renminbi (CNH Offshore) ********* ********* 8.0882 8.5030 8.2956 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. 20.57 20.64 1307.16 1307.93 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 – 29/07/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap t BOV 18108 37840.540 9 2.100 2.080 2.100 2.080 -0.012 2.090 s GO 5000 11900.000 1 2.380 2.380 2.380 2.380 0.020 2.380 t HSB 2000 4002.000 1 2.001 2.001 2.001 2.001 -0.003 2.001 l MIA 3800 8740.000 4 2.300 2.300 2.300 2.300 0.000 2.300 l MSI 86 74.820 1 0.870 0.870 0.870 0.870 0.000 0.870 l MTP 2899 3196.220 2 1.120 1.100 1.100 1.120 0.000 1.103 l RS2 54662 139285.700 3 2.550 2.500 2.500 2.550 0.000 2.548 t SFC 417 1188.450 1 2.850 2.850 2.850 2.850 -0.100 2.850 t G14B 18880 19229.280 3 101.850 101.850 101.850 101.850 -0.030 101.850 t G15B 5358 5697.160 1 106.330 106.330 106.330 106.330 -0.010 106.330 s G16A 7920 8711.210 1 109.990 109.990 109.990 109.990 0.010 109.990 s G16B 11181 12255.490 1 109.610 109.610 109.610 109.610 0.030 109.610 s G17C 75000 83317.500 6 111.090 111.090 111.090 111.090 0.050 111.090 s G18A 6057 7657.260 1 126.420 126.420 126.420 126.420 0.060 126.420 s G19A 47287 59444.490 1 125.710 125.710 125.710 125.710 0.180 125.710 s G20B 30000 34998.500 3 116.670 116.660 116.670 116.660 0.130 116.660 s G21A 54422 65475.120 3 120.310 120.310 120.310 120.310 0.090 120.310 t G22B 110500 127649.600 4 115.520 115.520 115.520 115.520 -0.050 115.520 s G23A 8153 10207.560 1 125.200 125.200 125.200 125.200 0.050 125.200 s G28B 275200 310289.960 8 112.780 112.650 112.650 112.740 0.130 112.750 s G30A 5075000 6109725.000 3 120.390 120.300 120.390 120.300 0.140 120.390 s G31A 40000 47300.000 2 118.250 118.250 118.250 118.250 0.090 118.250 s G32A 95000 104513.000 5 110.020 110.000 110.000 110.020 0.070 110.010 s G32BA 243100 260601.400 8 107.200 107.170 107.170 107.200 0.080 107.200 s AX24A 20300 21263.550 6 105.000 104.510 104.510 105.000 0.990 104.750 l BV18A 10000 10502.000 1 105.020 105.020 105.020 105.020 0.000 105.020 l BV19A 14100 14912.160 1 105.760 105.760 105.760 105.760 0.000 105.760 l BV19B 15000 15391.500 1 102.610 102.610 102.610 102.610 0.000 102.610 l GF21A 9000 9144.900 2 101.610 101.610 101.610 101.610 0.000 101.610 s IG24A 31900 33864.380 4 106.460 106.020 106.020 106.460 0.440 106.160 s MF24A 40700 41804.300 4 102.750 102.700 102.700 102.750 0.170 102.710 t MI15A 10000 9600.000 1 96.000 96.000 96.000 96.000 -2.000 96.000 l MI17A 4000 3960.000 1 99.000 99.000 99.000 99.000 0.000 99.000 ECB Monetary Operations On Monday, July 21, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, July 22, and attracted bids from euro area eligible counterparties of €97.89 billion, €2.02 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 23, the ECB conducted a seven-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted one bid of $0.08 billion, which was allotted in full at a fixed rate of 0.60%. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills maturing on October 24, 2014 and January 23, 2015, respectively. Bids of €16.00 million were submitted for the 91-day bills, with the Treasury accepting €8.00 million, while bids of €32.00 million were submitted for the 182-day bills, with the Treasury accepting only €2.00 million. Since €19.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €9.50 million, to stand at €407.07 million. The yield from the 91-day bill auction was 0.294%, i.e. 0.20 basis point lower than on bills with a similar tenor issued on July 18, 2014, representing a bid price of 99.9257 per 100 nominal. The yield from the 182-day bill auction was 0.350%, i.e. 2.5 basis points lower than on bills with a similar tenor issued on June 27, 2014, representing a bid price of 99.8234 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 31, 2014. Market Commentary: Eurozone recovery on track, activity likely to remain fragile Geopolitical tensions continue to grap- ple markets and dominated most of the activity and direction last week. Inves- tor sentiment remained subdued on the back of the danger of further es- calation in the Gaza Strip and Ukraine while the EU and America considered sanctions. Markets can now focus on a data laden calendar which might give scope for a bout of positive impetus. In the Eurozone, attention will be focused on the Eurostat's flash estimate of July's EMU-wide consumer price inflation whilst the publication of Q214 GDP and the July payrolls report and ISM purchasing managers index are all numbers which will be closely followed by many. In the Eurozone, economic sentiment is likely to remain stable in July. While services confidence should register a solid gain, compensating for the drop in consumer sentiment, industrial sentiment should remain unchanged from the month earlier, which is in line with the latest PMI figures. The latest economic indicators confirm that the recovery in the Eurozone is on track, but activity is likely to remain weak and fragile, as indicated by the growth differential between Eurozone's two largest economies. Activity was somewhat muted last week in the US. Although inflation figures were in line with expectations, they revealed a slowdown in the underlying price momentum, suggesting an absence of real inflationary pressures despite prices being much stronger than expected in April and May. Secondly, after the sharp contraction of June housing starts last week, the housing market statistics have sent out mixed signals with stronger existing home sales on one hand and a significant drop in new home sales in June on the other hand. On the data front, the US is expected to take centre stage this week with the publication of three major market movers: the FOMC meeting, employment figures and the first estimate of GDP figures for Q2. The FOMC's description of the economic environment could be slightly altered to reflect the stronger employment market in the last two months. However, outlook and forward guidance will probably remain unchanged. On Wednesday, the FOMC will conclude its two-day meeting. The accompanying statement is likely to include changes that acknowledge improved US growth, as well as a confirmation of the direction and shape future additional tapering could take. Meanwhile, Friday's focus will be on the US July employment and manufacturing ISM reports, with analysts expects an increase in non- farm payrolls of 240K and a decline in the unemployment rate to 6.0%. Elsewhere, in Japan, indications so far suggest that the consumption tax is likely to temporary impact on growth. The focus here is inflation which continues to decline at an alarming rate. In China, Q2 GDP growth accelerated to 7.5% y-o-y, on the back of steady net exports - credit growth remained strong whilst property investment, despite its downward trend, declined its rate of slowdown. Interestingly, as a result of the recent increase in global political instability, many major central banks have increased their gold reserves. According to an IMF survey, Russia increased its reserves by 1.5% whilst countries such Mexico, Serbia, Greece, Turkey and Ecuador have also followed suit. While low interest rates in US and EU are stimulating demand for high-risk assets, the political crisis is also serving as an opportunity for politicians and key government officials to increase their respective economic cushion by building a buffer in the form of increased gold reserves. This article was issued by Calamatta Cuschieri, visit www.cc.com.mt for more information. The information, view and opinions provided in this article is 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.