Issue link: https://maltatoday.uberflip.com/i/446030
maltatoday, WEDNESDAY, 14 JANUARY 2015 12 Business Today Money Market Report for the week ending January 9, 2015 ECB Monetary Operations On Friday, January 2, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Monday, January 5, and attracted bids from euro area eligible counterparties of €112.33 billion, €43.79 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, January 7, 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 0.61% 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 and 91-day bills maturing on February 6, and April 10, 2015, respectively. Bids of €17.00 million were submitted for the 28-day bills, with the Treasury accepting €2.00 million, while bids of €34.00 million were submitted for the 91-day bills, with the Treasury accepting €12.00 million. Since €6.00 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €8.00 million, to stand at €157.44 million. The yield from the 28-day bill auction was 0.015%, i.e. 4.5 basis points lower than on bills with a similar tenor issued on December 12, 2014, representing a bid price of 99.9988 per 100 nominal. The yield from the 91-day bill auction was 0.035%, i.e. 0.3 basis point higher than on bills with a similar tenor issued on January 2, 2015, representing a bid price of 99.9912 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 and 182-day bills maturing on April 17, and July 17, 2015, respectively. Market commentary: The Oil and QE saga Markets across the board traded high- er yesterday as oil continued its slide and analysts continued to analyse this effect in terms of curbed growth. On the back of this, yield on treasuries continued to fall with the 10-year cur- rently trading at the 1.876% level. All eyes are now on the ECB meeting of the 22nd January. Anything short of a QE will be a disappointment to the market as investors are assuming that QE is a fait accompli. Markets are currently expecting asset purchases of at least €500 billion to shore up the ECB's balance sheet to March 2012 levels. Oil hit new lows as both Brent and WTI closed yesterday at their lowest in five years. Furthermore, after Federal Reserve minutes confirmed last week that it is highly unlikely that interest rate in the US will be hiked before late April, yesterday there was Fed talk in the market after US close. In his comment to Bloomberg, Fed official William was quoted as saying that by June the decision whether to raise interest rates will still be a close call. Employment data printed last week has been positive but wage and price data remain somewhat subdued. At the time of going to print, futures are indicating a mixed open in Europe as investors continue to digest economic data and current issues with ECB, Oil, Greece and the Fed continuing to take centre stage. Overnight in Asia, markets traded mixed, on one hand helped by a better than expected China trade report and the continued downward trend in oil on the other. As the Greece saga continues, concerns about a Greek exit have somewhat been subdued, especially after Germany announced that they would be open to discuss with Greece's new government in relation to the country's debt and bailout terms. Syriza continues to maintain their lead in the polls. Syriza's Alexis Tsiparas said that a new Syriza government will honour the repayment of debt maturing in March and will keep Greece in the Euro. On the data front, today we await the UK inflation figures. Last reading indicated an increase of 1% year on year. Analysts are expecting a reduction in the figure. On the subject of oil, analysts will await an inventories report that is due tomorrow in the US. Yesterday also marked the start of the earnings season, as Alcoa profits beat estimates helped by orders from the auto and aerospace industries. Airline Lufthansa reiterated the company's profit for this year as the company said that the fuel bill for the year should be lower as oil continues to decline. Shares of Lufthansa are trading higher this morning. This article was issued by Darin Pace, Treasury Manager at Calamatta Cuschieri. For more information visit, www. cc.com.mt . 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 newspaper Regular market closed – 13/01/2014 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap l 6PM 5402 3781.400 2 0.700 0.700 0.700 0.700 0.000 0.700 s BOV 72131 160852.600 14 2.240 2.221 2.230 2.221 0.006 2.230 l GO 2310 5922.350 2 2.595 2.560 2.560 2.595 0.000 2.564 t HSB 50722 100982.890 6 2.000 1.980 1.980 1.980 -0.015 1.991 t IHI 1551 868.560 1 0.560 0.560 0.560 0.560 -0.010 0.560 s MDI 10500 2415.000 1 0.230 0.230 0.230 0.230 0.020 0.230 s MDS 31000 45270.000 3 1.470 1.460 1.470 1.460 0.010 1.460 s MIA 23400 56024.000 6 2.400 2.385 2.390 2.400 0.039 2.394 t G15B 4659 4852.350 1 104.150 104.150 104.150 104.150 -0.100 104.150 l G15F 10000 10313.000 1 103.130 103.130 103.130 103.130 0.000 103.130 t G16A 15142 16292.790 3 107.600 107.600 107.600 107.600 -0.010 107.600 l G17C 35000 38657.000 2 110.470 110.420 110.470 110.420 0.000 110.450 s G18A 5591 6984.830 2 124.980 124.920 124.920 124.980 0.080 124.930 s G19A 37737 47650.090 2 126.380 126.260 126.260 126.380 0.080 126.270 s G21A 46589 57658.550 2 123.760 123.760 123.760 123.760 0.200 123.760 s G22A 6989 8828.740 2 126.470 126.250 126.250 126.470 0.230 126.320 s G22B 113600 136632.640 5 120.330 120.130 120.130 120.330 0.220 120.280 s G23A 13977 18353.200 2 131.310 131.310 131.310 131.310 0.350 131.310 s G28A 110000 141618.400 9 128.760 128.540 128.540 128.760 0.400 128.740 s G28B 272800 340847.440 13 124.980 124.700 124.700 124.980 0.400 124.940 s G29A 73200 96586.500 9 131.980 131.800 131.800 131.980 0.430 131.950 s G30A 361700 481327.840 20 133.120 132.700 132.700 133.120 0.450 133.070 s G31A 48200 63310.700 5 131.350 131.350 131.350 131.350 0.270 131.350 s G32A 163700 201027.380 15 123.040 122.580 122.580 122.790 0.210 122.800 s G32B 83000 99462.400 10 120.000 119.490 119.490 119.920 0.450 119.830 s G33A 124000 144811.900 9 116.860 116.510 116.510 116.860 0.460 116.780 s G34A 1035300 1177954.010 30 114.000 113.630 113.630 114.000 0.530 113.780 t AX24A 25800 28054.040 6 109.540 107.500 109.500 107.500 -2.040 108.740 t BV20A 8400 8904.000 2 106.000 106.000 106.000 106.000 -0.300 106.000 s CB21A 5000 5100.000 1 102.000 102.000 102.000 102.000 2.000 102.000 t HM24A 100000 103650.000 1 103.650 103.650 103.650 103.650 -0.150 103.650 s IH21A 10000 10280.890 3 103.000 102.510 102.510 103.000 0.490 102.810 l IH23A 25000 25630.000 1 102.520 102.520 102.520 102.520 0.000 102.520 s MF24A 350000 378000.000 2 108.000 108.000 108.000 108.000 1.490 108.000 l MI15A 1500 1425.000 1 95.000 95.000 95.000 95.000 0.000 95.000 l MO19A 3200 3393.920 1 106.060 106.060 106.060 106.060 0.000 106.060 s PG22A 4300 4558.000 1 106.000 106.000 106.000 106.000 0.200 106.000 l PT24A 36100 37864.360 3 104.990 104.760 104.990 104.760 0.000 104.890 s UF23A 85000 88382.500 4 104.000 103.900 103.900 104.000 0.100 103.980 Market Summary as at January 13, 2015 Equity Official List Session State ................................................................... closed Number of trades ............................................................. 203 Volume Traded ................................................................. 3,412,500 Value of € denominated securities .................................... 4,160,747.87 Value of US$ denominated securities ................................ 0.00 Value of GBP£ denominated securities .............................. 3,781.4 Current Index ................................................................... 3329.517 Previous Index ................................................................. 3330.332 Change in Index (%) ......................................................... -0.024% 6pm Holdings plc ......................... 0.700 0.00% Malta International Airport plc ...... 2.400 1.65% Bank of Valletta plc ....................... 2.221 0.27% MaltaPost plc ................................ 1.200 0.00% Crimsonwing plc .......................... 0.859 0.00% Medserv plc ................................. 1.460 0.69% FIMBank plc ................................. 0.600 0.00% Middlesea Insurance plc ............... 1.000 0.00% GlobalCapital plc .......................... 0.800 0.00% MIDI plc ....................................... 0.230 9.52% GO plc .......................................... 2.595 0.00% Plaza Centres plc .......................... 0.670 0.00% Grand Harbour Marina plc ............ 1.820 0.00% RS2 Software plc........................... 2.910 0.00% HSBC Bank Malta plc .................... 1.980 -0.75% Simonds Farsons Cisk plc .............. 3.051 0.00% IHI plc .......................................... 0.560 -1.75% Tigné Mall plc ............................... 0.600 0.00% Island Hotels Group Holdings plc .. 0.850 0.00% Pefaco International plc ................ 2.190 0.00% Lombard Bank Malta plc ............... 1.770 0.00% Santumas Shareholdings plc ........ 2.000 0.00% Malita Investments plc .................. 0.642 0.00%