Issue link: https://maltatoday.uberflip.com/i/398422
maltatoday, WEDNESDAY, 15 OCTOBER 2014 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Money Market Report for the week ending October 10, 2014 Exchange Rates Issue Date: 14-Oct-14 Set: 3 Issue Time: 14:54:07 Value Date: 16/10/2014 except TND value 17/10/2014 Currency Cash Cash Non-Cash Non-Cash Revaluation Buying Selling Selling Buying British Pound (GBP) 0.8292 0.7706 0.7745 0.8143 0.7944 United States Dollar (USD) 1.3211 1.2277 1.2341 1.2973 1.2657 Swiss Franc (CHF) 1.2609 1.1718 1.1778 1.2382 1.2080 Australian Dollar (AUD) 1.5112 1.4045 1.4117 1.4841 1.4479 Canadian Dollar (CAD) 1.4836 1.3788 1.3859 1.4569 1.4214 Japanese Yen (JPY) 141.3600 131.3671 132.0443 138.8158 135.4300 Danish Krone (DKK) 7.7700 7.2200 7.2500 7.6300 7.4400 Swedish Kronor (SEK) 9.5600 8.8900 8.9300 9.3900 9.1600 Hong Kong Dollar (HKD) 10.2463 9.5223 9.5714 10.0622 9.8168 Norwegian Krone (NOK) 8.6600 8.0500 8.0900 8.5100 8.3000 New Zealand Dollar (NZD) 1.6798 1.5611 1.5692 1.6496 1.6094 Singapore Dollar (SGD) 1.6840 1.5650 1.5731 1.6537 1.6134 South African Rand (ZAR) 14.6262 13.5927 13.6628 14.3634 14.0131 Czech Koruna (CZK) 28.7500 26.7200 26.8583 28.2357 27.5470 Polish Zloty (PLN) 4.3800 4.0700 4.0956 4.3056 4.2006 Hungarian Forint (HUF) 337.2795 288.2260 298.9537 314.2875 306.6168 Moroccan Dirham (MAD) 12.1880 10.4152 ********* ********* 11.0800 Tunisian Dinar (TND) 2.3800 2.2100 2.2235 2.3375 2.2805 United Arab Emirates Dirham (AED) 5.1139 4.3701 4.5328 4.7652 4.6490 Bahraini Dinar (BHD) 0.5249 0.4486 ********* ********* 0.4772 Gibraltar Pound (GIP) 0.8735 0.7465 ********* ********* 0.7941 Israeli New Sheqel (ILS) 5.2043 4.4473 ********* ********* 4.7312 Kuwaiti Dinar (KWD) 0.4024 0.3439 ********* ********* 0.3658 Saudi Riyal (SAR) 5.2229 4.4632 ********* ********* 4.7481 Turkish New Lira (TRY) ********* ********* 2.8126 2.9568 2.8847 Thailand BAHT (THB) ********* ********* 40.1068 42.1637 41.1353 Chinese Renminbi (CNY Onshore) ********* ********* 7.5593 7.9469 7.7531 Chinese Renminbi (CNH Offshore) ********* ********* 7.5794 7.9680 7.7737 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. 17.47 17.55 1234.35 1234.95 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 –13/10/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap ● 6PM 250 180.000 1 0.720 0.720 0.720 0.720 0.000 0.720 ▲ BOV 15295 33671.600 3 2.210 2.200 2.210 2.200 0.010 2.201 ● GO 1000 2679.370 2 2.680 2.679 2.679 2.680 0.000 2.679 ▼ HSB 94849 184904.150 19 1.960 1.920 1.960 1.920 -0.068 1.949 ● MIA 2000 4680.000 1 2.340 2.340 2.340 2.340 0.000 2.340 ● MLT 25000 14000.000 2 0.560 0.560 0.560 0.560 0.000 0.560 ▼ TML 30000 15600.000 1 0.520 0.520 0.520 0.520 -0.005 0.520 ▼ G15B 28652 30233.590 2 105.520 105.520 105.520 105.520 -0.060 105.520 ▼ G16B 1165 1274.160 1 109.370 109.370 109.370 109.370 -0.050 109.370 ▼ G17C 33500 37298.900 3 111.340 111.340 111.340 111.340 -0.020 111.340 ▼ G17D 25000 27315.000 1 109.260 109.260 109.260 109.260 -0.050 109.260 ▼ G18A 9318 11775.160 2 126.370 126.370 126.370 126.370 -0.050 126.370 ▼ G19A 4659 5904.350 1 126.730 126.730 126.730 126.730 -0.040 126.730 ▼ G19C 10000 10963.000 1 109.630 109.630 109.630 109.630 -0.020 109.630 ● G21A 6989 8555.930 1 122.420 122.420 122.420 122.420 0.000 122.420 ▲ G22A 5126 6358.800 2 124.110 124.000 124.000 124.110 0.030 124.050 ▲ G22B 567000 669797.100 4 118.130 118.130 118.130 118.130 0.020 118.130 ▲ G28A 62000 76539.900 5 123.550 123.420 123.420 123.550 0.100 123.450 ▲ G28B 336700 403835.960 7 119.980 119.880 119.880 119.980 0.070 119.940 ▼ G29A 15000 18945.000 1 126.300 126.300 126.300 126.300 -0.050 126.300 ▼ G30A 508000 647915.600 10 127.560 127.450 127.500 127.550 -0.040 127.540 ▼ G31A 31000 38945.300 3 125.630 125.630 125.630 125.630 -0.190 125.630 ▲ G32A 200000 234810.000 7 117.500 117.300 117.350 117.500 0.040 117.410 ▼ G32B 90500 103618.250 6 114.500 114.450 114.450 114.500 -0.120 114.500 ▼ G33A 96400 107527.060 7 111.590 111.540 111.590 111.540 -0.230 111.540 ▼ G34AA 125000 136041.840 7 108.900 108.750 108.900 108.750 -0.210 108.830 ▼ GF21A 2200 2270.400 1 103.200 103.200 103.200 103.200 -0.300 103.200 ▲ MB15A 20000 20386.000 2 102.000 101.800 101.800 102.000 0.200 101.930 ▼ MI17A 25000 23268.000 3 93.900 93.000 93.900 93.000 -1.000 93.070 ECB Monetary Operations On Monday, October 6, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, October 7, and attracted bids from euro area eligible counterparties of €84.21 billion, €4.86 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, October 8, 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 0.59% and 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 28-day bills maturing on November 7, 2014. Bids of €35.00 million were submitted for the 28-day bills, with the Treasury accepting €12.00 million. Since €30.50 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €18.50 million, to stand at €298.57 million. The yield from the 28-day bill auction was 0.030%, i.e. 0.6 basis point lower than on bills with a similar tenor issued on October 3, 2014, representing a bid price of 99.9977 per 100 nominal. During the week under review, there was no trading on the Malta Stock Exchange. On Tuesday, the Treasury invited tenders for 28-day and 182-day bills maturing on November 14, 2014, and April 17, 2015, respectively. Markets continue to be driven by ex- pectations, primarily expectations of the shape, form, size and timing of the world's leading central bank's next move(s). And the current situation we are living in right now is no exception, as the debate about the US Federal Reserve's timing of an interest rate hike from all-time lows, continues to dominate global capital markets. Markets had been discounting a March-April 2015 rate hike for weeks as stronger than-expected payrolls and the unexpected fall in the unemployment rate resulted in an uptick in US bond yields. However, analysts and economists began having second thoughts mid-way throughout last week as the FOMC minutes were seen somewhat dovish, pushing yields lower. The minutes had in fact highlighted uncertainty about foreign growth, low wage rises and a stronger USD. As a result, last week saw analysts' marked lengthening/postponing of expectations in the commencement of tighter fiscal policy in the US. Having said that, we remain aware that the Federal Reserve's main focus will be on in its internal economy. A number of key US economic data releases will be of particular importance this week, namely a flurry of Fed speeches coupled with the beige book and retail sales. The ECB will be undoubtedly following every move the Fed takes. On one end, the ECB's council members who have long been against large-scale sovereign bond buying have welcomed the recent weakness in the currency. Never the less, the market continues to expect more swift and concrete action by the ECB; persistently soft growth and inflation data continue to point towards additional measures, perhaps a widening of the term of its asset purchase programme is due over the coming months. Global equity markets had a somewhat lacklustre week last week as news of Germany's IP drop and the IMF warnings on a potential recession in the eurozone pushed indices markedly lower. In the interim, there was some relief for equities following the FOMC minutes which helped the S&P to post the biggest intra-day increase so far in 2014, however, this positive momentum was not seen in the eurozone, which continued to lose ground. Following the announcement of Aloca's earnings results last week, earnings season will accelerate this week with the big US banks taking centre stage (with no earnings announcement yesterday on Columbus day in the US, albeit US markets were open, today' sentiment from earnings releases will remain key and will dictate market direction for most of the week). If Alcoa's results are a sign of what is to come, we could well see an uptick in risk appetite over the next weeks. However, if the economy is not recovering and earnings season fails to surprise to the upside, yields will surely remain low for a longer- than-expected period. Meanwhile, in the run up to earnings season, bank spreads are slowly improving once again on the back of a stronger fundamental backdrop. In the interim, we cannot rule out increased volatility spreads around the expected release date of the Asset Quality Review later on this month. However, overall, we have seen a marked improvement in bank fundamentals mainly on the back of stronger capital ratios. Meanwhile, over the week-end, Russia's Putin ordered Russian troops to return to their bases following military exercises in the Rostov region, close to the Ukrainian border. On a related note, markets will be closely monitoring the possibility of dialogue between Putin and Poroshenko in a summit in Milan later on this week. 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. Market Commentary: Markets driven by expectation of Fed's next move