Issue link: https://maltatoday.uberflip.com/i/362477
maltatoday, WEDNESDAY, 13 AUGUST 2014 11 Business Today Money Market Report for the week ending August 8, 2014 Exchange Rates Issue Date: 12-Aug-14 Set: 2 Issue Time: 14:43:04 Value Date: 14/08/2014 Except TND Value 15/8/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8304 0.7717 0.7757 0.8155 0.7956 United States Dollar (USD) 1.3937 1.2952 1.3019 1.3687 1.3353 Swiss Franc (CHF) 1.2667 1.1772 1.1833 1.2439 1.2136 Australian Dollar (AUD) 1.5037 1.3975 1.4047 1.4767 1.4407 Canadian Dollar (CAD) 1.5251 1.4174 1.4247 1.4977 1.4612 Japanese Yen (JPY) 142.4200 132.3565 133.0388 139.8613 136.4500 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) 10.8026 10.0393 10.0911 10.6085 10.3498 Norwegian Krone (NOK) 8.6100 8.0000 8.0400 8.4600 8.2500 New Zealand Dollar (NZD) 1.6522 1.5354 1.5433 1.6225 1.5829 Singapore Dollar (SGD) 1.7429 1.6197 1.6281 1.7115 1.6698 South African Rand (ZAR) 14.8593 13.8094 13.8806 14.5924 14.2365 Czech Koruna (CZK) 29.0700 27.0200 27.1567 28.5493 27.8530 Polish Zloty (PLN) 4.3900 4.0800 4.0998 4.3100 4.2049 Hungarian Forint (HUF) 346.2005 295.8492 306.8614 322.6015 314.7326 Moroccan Dirham (MAD) 12.3090 10.5186 ********* ********* 11.1900 Tunisian Dinar (TND) 2.4000 2.2300 2.2434 2.3584 2.3009 United Arab Emirates Dirham (AED) 5.3950 4.6102 4.7819 5.0271 4.9045 Bahraini Dinar (BHD) 0.5537 0.4732 ********* ********* 0.5034 Gibraltar Pound (GIP) 0.8751 0.7478 ********* ********* 0.7955 Israeli New Sheqel (ILS) 5.1275 4.3817 ********* ********* 4.6614 Kuwaiti Dinar (KWD) 0.4161 0.3556 ********* ********* 0.3783 Saudi Riyal (SAR) 5.5086 4.7073 ********* ********* 5.0078 Turkish New Lira (TRY) ********* ********* 2.8173 2.9617 2.8895 Thailand BAHT (THB) ********* ********* 41.7835 43.9263 42.8548 Chinese Renminbi (CNY Onshore) ********* ********* 8.0169 8.4281 8.2225 Chinese Renminbi (CNH Offshore) ********* ********* 8.0204 8.4317 8.2260 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. 20.10 20.14 1314.49 1315.01 SILVER 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 PUBLIC Regular market closed – 12/08/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap l BOV 37676 79121.480 6 2.101 2.100 2.100 2.100 0.000 2.100 t GO 1600 3792.000 1 2.370 2.370 2.370 2.370 -0.030 2.370 t HSB 10222 19616.240 6 1.920 1.910 1.920 1.920 -0.030 1.919 t MIA 2800 6350.000 2 2.300 2.250 2.300 2.250 -0.050 2.268 l MLT 1500 825.000 1 0.550 0.550 0.550 0.550 0.000 0.550 t MSI 1000 900.000 1 0.900 0.900 0.900 0.900 -0.020 0.900 t RS2 6329 16455.400 1 2.600 2.600 2.600 2.600 -0.029 2.600 t SFC 25000 71525.000 1 2.861 2.861 2.861 2.861 -0.009 2.861 t G21A 2000 2412.400 1 120.620 120.620 120.620 120.620 -0.050 120.620 t G22B 10000 11581.000 1 115.810 115.810 115.810 115.810 -0.020 115.810 t G28B 24700 28088.840 2 113.720 113.720 113.720 113.720 -0.160 113.720 t G29A 6000 7210.800 1 120.180 120.180 120.180 120.180 -0.200 120.180 t G30A 30000 36336.000 2 121.120 121.120 121.120 121.120 -0.190 121.120 t G31A 2000 2381.200 2 119.060 119.060 119.060 119.060 -0.160 119.060 t G32BA 668000 722230.600 5 108.120 108.020 108.120 108.020 -0.120 108.120 t G33A 40000 42214.760 3 105.560 105.530 105.560 105.530 -0.140 105.540 s GF21A 153400 156084.500 1 101.750 101.750 101.750 101.750 0.140 101.750 s IH23A 15000 15601.500 1 104.010 104.010 104.010 104.010 0.210 104.010 s SF20A 800 841.680 1 105.210 105.210 105.210 105.210 0.100 105.210 ECB Decisions On Thursday, August 7, the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations (MRO) and on the marginal lending facility and deposit facility will remain unchanged at 0.15%, 0.40% and -0.10% respectively. ECB Monetary Operations On Monday, August 4, the ECB announced its weekly MRO. The auction was conducted on Tuesday, August 5, and attracted bids from euro area eligible counterparties of €107.92 billion, €25.38 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, August 6, 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 0.59%. Domestic Treasury Bill Market In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day bills and for 182- day bills maturing on September 5, 2014 and February 6, 2015, respectively. Bids of €2.00 million were submitted for the 28-day bills, with the Treasury accepting all of them, while bids of €46.00 million were submitted for the 182-day bills, with the Treasury accepting €10.00 million. Since €27.00 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €15.00 million, to stand at €371.57 million. The yield from the 28-day bill auction was 0.200%, i.e. 3.10 basis points higher than on bills with a similar tenor issued on June 27, 2014, representing a bid price of 99.9844 per 100 nominal. The yield from the 182- day bill auction was 0.322%, i.e. 2.80 basis points lower than on bills with a similar tenor issued on July 25, 2014, representing a bid price of 99.8375 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday the Treasury invited tenders for 92-day bills maturing on November 14, 2014. Market Commentary: Chinese stocks weaker overnight, emerging markets rally This week markets started on a posi- tive note, as somehow alleviating geopolitical risks pushed investors into a risk-on mode with consequent- ly positive changes in equity and bond prices. Indeed, after reports that Russian military planes have ceased exercises in the proximity of the Ukrainian border, the rebound was broad based yesterday and expanded to include even the Russian market. The latter was as well supported by the MSCI's decision to keep Sberbank and VTB in its index; as such, the two banks advanced by 5.1% and 4.2% respectively. However, even as the risk taking was on the rise the government bonds remained well supported with such safer assets seeing just measured changes in yields and falling to depart significantly from the multi- months or even record lows touched last week. It is thus perhaps too soon to tell if the gains we saw yesterday are due to a real change in sentiment particularly as a solution for the Russian-Ukrainian conflict and the situation in Iraq is still pending but is evidence of the prevalent underling interest in high return assets. Actually, local media reported that Russian authorities might consider banning state purchases of cars from the countries which retaliated against it. Also, the western powers are trying to gain additional support as the European Union reportedly asked the Latin American countries not to export food to Russia (Financial Times). However, the European leaders yet again appear to face challenges in acting in consensus. Specifically, Bloomberg reported that Finland is growing frustrated because the agricultural sanctions disproportionately affect its economy. Meanwhile, the Russian GDP data published yesterday showed that the growth rate slowed down to 0.8% in QoQ, which was nevertheless marginally better than the 0.7% projected by analysts. Emerging markets joined the rally but the Chinese stocks were weaker overnight as optimism flattened after the gains seen a day earlier when weak inflation boosted expectations for additional stimulus. The shift could be attributable to the uncertainty regarding the data due in the next 24 hours (industrial production, retail sales, and new loans). The European equities appear to have taken queue from the Chinese market as the futures now point to a negative opening. Another drag for the stocks this morning could be the news that a Russian aid convoy has started moving towards Ukraine; the possibility of a humanitarian mission was mentioned over the last few days but the western leaders appear sceptical at the true nature of such transports and the US warned against using them as a mean of sending troops. On the data front, today we will be looking into the German ZEW Economic Sentiment, which should help better assess the significance of last week's below expectations German data (factory orders -3.2% MoM, industrial production 0.3% MoM and trade balance EUR16.2 bn). On the other side of the Atlantic, of importance will be the release of the JOLTS Job openings. 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. YOUR FIRST CLICK OF THE DAY www.maltatoday.com.mt