Issue link: https://maltatoday.uberflip.com/i/382165
maltatoday, WEDNESDAY, 17 SEPTEMBER 2014 11 Business Today Money Market Report for the week ending September 12, 2014 Exchange Rates Issue Date: 16-Sep-14 Set: 1 Issue Time: 07:32:53 Value Date: 18/09/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8330 0.7742 0.7821 0.8141 0.7981 United States Dollar (USD) 1.3507 1.2553 1.2682 1.3200 1.2941 Swiss Franc (CHF) 1.2629 1.1737 1.1858 1.2342 1.2100 Australian Dollar (AUD) 1.4986 1.3927 1.4071 1.4645 1.4358 Canadian Dollar (CAD) 1.4944 1.3888 1.4032 1.4604 1.4318 Japanese Yen (JPY) 144.8200 134.5875 135.9750 141.5250 138.7500 Danish Krone (DKK) 7.7700 7.2200 7.2900 7.5900 7.4400 Swedish Kronor (SEK) 9.6000 8.9200 9.0200 9.3800 9.2000 Hong Kong Dollar (HKD) 10.4688 9.7291 9.8294 10.2306 10.0300 Norwegian Krone (NOK) 8.6400 8.0300 8.1100 8.4500 8.2800 New Zealand Dollar (NZD) 1.6535 1.5367 1.5525 1.6159 1.5842 Singapore Dollar (SGD) 1.7066 1.5860 1.6024 1.6678 1.6351 South African Rand (ZAR) 14.8264 13.7788 13.9208 14.4890 14.2049 Czech Koruna (CZK) 28.7600 26.7300 27.0068 28.1092 27.5580 Polish Zloty (PLN) 4.3800 4.0700 4.1117 4.2795 4.1956 Hungarian Forint (HUF) 345.9130 295.6044 308.1759 320.7596 314.4654 Moroccan Dirham (MAD) 12.2430 10.4622 ********* ********* 11.1300 Tunisian Dinar (TND) 2.3900 2.2200 2.2426 2.3342 2.2884 United Arab Emirates Dirham (AED) 5.2285 4.4680 4.6581 4.8483 4.7532 Bahraini Dinar (BHD) 0.5367 0.4586 ********* ********* 0.4879 Gibraltar Pound (GIP) 0.8777 0.7500 ********* ********* 0.7979 Israeli New Sheqel (ILS) 5.1644 4.4132 ********* ********* 4.6949 Kuwaiti Dinar (KWD) 0.4081 0.3487 ********* ********* 0.3710 Saudi Riyal (SAR) 5.3390 4.5624 ********* ********* 4.8536 Turkish New Lira (TRY) ********* ********* 2.8070 2.9216 2.8643 Thailand BAHT (THB) ********* ********* 40.9303 42.6009 41.7655 Chinese Renminbi (CNY Onshore) ********* ********* 7.8036 8.1222 7.9629 Chinese Renminbi (CNH Offshore) ********* ********* 7.8278 8.1473 7.9875 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. 18.74 18.77 1236.34 1236.86 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 –16/09/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap l BOV 2050 4578.500 3 2.240 2.230 2.240 2.240 0.000 2.233 s FIM 49960 33191.860 4 0.665 0.602 0.655 0.665 0.005 0.664 s GO 13100 33214.000 5 2.550 2.520 2.530 2.550 0.030 2.535 t HSB 30770 61576.940 12 2.010 1.980 2.000 1.980 -0.020 2.001 s LOM 11430 18784.430 3 1.650 1.601 1.601 1.649 0.049 1.643 l MDS 3900 4972.500 2 1.275 1.275 1.275 1.275 0.000 1.275 l MIA 10000 23500.000 1 2.350 2.350 2.350 2.350 0.000 2.350 s RS2 62400 179748.800 10 2.950 2.850 2.850 2.950 0.100 2.881 s G20EA 15000 15510.000 1 103.400 103.400 103.400 103.400 0.170 103.400 s G21A 148727 181037.810 7 121.730 121.600 121.600 121.730 0.220 121.720 s G23A 232938 296250.540 2 127.180 127.180 127.180 127.180 0.260 127.180 s G28A 13000 15726.100 1 120.970 120.970 120.970 120.970 0.150 120.970 s G28B 124300 145943.410 4 117.420 117.370 117.420 117.370 0.210 117.410 s G29A 11400 14069.880 2 123.420 123.420 123.420 123.420 0.400 123.420 s G30A 2040000 2543616.000 5 124.690 124.590 124.590 124.590 0.400 124.690 s G32A 28000 32082.400 3 114.580 114.580 114.580 114.580 0.340 114.580 s G32B 36000 40238.300 6 111.780 111.730 111.780 111.730 0.290 111.770 s G33A 22000 24007.000 2 109.270 109.000 109.000 109.270 0.320 109.120 s G34AA 522900 556014.200 17 106.500 106.000 106.000 106.500 0.500 106.330 l BV20A 7300 7599.300 2 104.100 104.100 104.100 104.100 0.000 104.100 l HB17A 10000 10376.000 1 103.760 103.760 103.760 103.760 0.000 103.760 t IH23A 12000 12242.000 2 102.100 102.000 102.100 102.000 -0.300 102.020 s MO19A 3000 3165.830 2 105.530 105.520 105.520 105.530 0.020 105.530 t MS23A 26300 27641.300 2 105.100 105.100 105.100 105.100 -0.100 105.100 l PG20A 4000 4160.000 1 104.000 104.000 104.000 104.000 0.000 104.000 s PG22A 25000 26750.000 2 107.000 107.000 107.000 107.000 1.000 107.000 s SF20A 5400 5692.140 1 105.410 105.410 105.410 105.410 0.150 105.410 s TI20A 10000 10656.000 1 106.560 106.560 106.560 106.560 0.060 106.560 ECB Monetary Operations On Monday, September 8, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, September 9, and attracted bids from euro area eligible counterparties of €110.70 billion, €0.50 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 0.05%, in accordance with current ECB policy. On Wednesday, September 10, 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 91-day and 182-day bills maturing on December 12, 2014 and March 13, 2015, respectively. Bids of €28.00 million were submitted for the 91-day bills, with the Treasury accepting €8.50 million, while bids of €35.50 million were submitted for the 182-day bills, with the Treasury accepting €1.50 million. Since €23.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13.50 million, to stand at €333.57 million. The yield from the 91-day bill auction was 0.146%, i.e. 2.9 basis points lower than on bills with a similar tenor issued on September 5, 2014, representing a bid price of 99.9631 per 100 nominal. The yield from the 182-day bill auction was 0.203%, i.e. 8.7 basis points lower than on bills with a similar tenor issued on August 22, 2014, representing a bid price of 99.8975 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. Today the Treasury will invite tenders for 91- day bills maturing on December 19, 2014. Market Commentary: Markets bracing for Scottish referendum result The end of August was char- acterised by volatility that has since subsided since the turn of the month. However, the third week of September has the potential to result in the resumption of volatil- ity. Economic data releases remain the driving force and continue to dictate mar- ket direction, however, this week key events are worth highlighting. Firstly, markets will need to contend with the FOMC meeting tomorrow, which can be a trigger for some edginess in markets. Some market participants are in fact beginning to anticipate an earlier-than expected rate hike on average. Growth numbers have been supportive and inflation has been in line with the forecasts. Asset markets remain supportive for growth, with lower-than- expected bond yields and healthy asset price gains. Markets will be eagerly awaiting to listen to Yellen's tone as well as wording, with some analysts expecting her to change her wording from "keep fund rate near zero for considerable time" to "keep fund rate near zero." Secondly, the much-awaited Scottish referendum vote comes on Thursday (as markets will still be grappling with and digesting the previous night's FOMC meeting). The pendulum was swinging in favour of the No vote which served to slightly calm down the investors. However, over the weekend, the undecided votes continue to remain in the balance, with the outcome expected to go to the wire. Markets view an independence of Scotland as rather unlikely but in case the markets view is wrong it is worth to have a look at possible implications. A potential independence could cause massive financial turbulences in the UK as it could possibly bring Scotland into a recession, which would be followed by hard austerity. Capital will continue to flow across the border, most likely followed by jobs and tax income. The markets ought to however pay more attention to the Swiss National Bank's policy meeting on Thursday. The SNB is currently facing a three-pronged dilemma, that of a fixed exchange rate, free capital flows and an independent monetary policy. A central bank is not in a position to sustain all three conditions in an indefinite manner, something that the SNB is taking its chances at. Loose monetary policy could be inappropriate for Switzerland given the buoyant real estate market, but the SNB is unlikely to adjust the peg in the near-term, especially as the fight against deflation has not yet been conquered, so far. In fact, SNB President Jordan has previously mentioned negative interest rates as "a possible option," with this move unlikely, for the time being, until after the ECB's Asset Quality Review (AQR) is published in October 2014. There. Now that's a pretty decent eventful week to contend with. True, the market seems to be pricy but it is definitely not time to fret. 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.