Issue link: https://maltatoday.uberflip.com/i/510672
maltatoday, WEDNESDAY, 13 MAY 2015 12 Business Today Regular market closed – 12/05/2015 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap s 6PM 15000 11250.000 1 0.750 0.750 0.750 0.750 0.010 0.750 t BOV 14614 33317.720 12 2.280 2.279 2.280 2.279 -0.001 2.280 t GO 24000 71560.000 3 2.990 2.980 2.980 2.980 -0.019 2.982 t HSB 5300 9911.000 2 1.870 1.870 1.870 1.870 -0.010 1.870 t IHI 10000 6900.000 1 0.690 0.690 0.690 0.690 -0.010 0.690 l MIA 3170 10968.200 2 3.460 3.460 3.460 3.460 0.000 3.460 l MLT 43500 38280.000 3 0.880 0.880 0.880 0.880 0.000 0.880 s PZC 100000 95100.000 3 0.951 0.951 0.951 0.951 0.006 0.951 l RS2 1100 3476.000 1 3.160 3.160 3.160 3.160 0.000 3.160 t G16B 11181 11979.320 1 107.140 107.140 107.140 107.140 -0.010 107.140 t G16D 5000000 5263500.000 1 105.270 105.270 105.270 105.270 -0.700 105.270 t G17C 10000 10978.000 2 109.780 109.780 109.780 109.780 -0.040 109.780 t G19A 6989 8746.740 2 125.150 125.150 125.150 125.150 -0.220 125.150 t G20B 7000 8310.400 1 118.720 118.720 118.720 118.720 -0.160 118.720 t G21A 130906 162857.840 10 124.410 124.400 124.400 124.410 -0.290 124.410 t G22B 39200 47620.160 2 121.480 121.480 121.480 121.480 -0.450 121.480 t G28A 77000 103364.800 3 134.240 134.240 134.240 134.240 -0.760 134.240 t G28B 419300 548553.260 16 130.830 130.820 130.820 130.820 -0.750 130.830 t G29A 5000 6947.000 1 138.940 138.940 138.940 138.940 -0.860 138.940 t G30A 326700 462965.570 17 141.710 141.700 141.710 141.700 -0.930 141.710 t G31A 240000 341592.000 14 142.330 142.330 142.330 142.330 -1.030 142.330 t G32A 171600 231986.040 13 135.190 135.190 135.190 135.190 -1.080 135.190 t G32B 69400 91864.780 7 132.370 132.370 132.370 132.370 -1.070 132.370 t G33A 432700 564760.040 23 130.520 130.520 130.520 130.520 -1.020 130.520 t G34A 220500 284099.700 13 129.940 128.740 129.940 128.740 -1.200 128.840 t G40AA 469600 522336.080 32 111.230 111.230 111.230 111.230 -1.490 111.230 s MF24A 8000 8730.400 1 109.130 109.130 109.130 109.130 0.020 109.130 s MI21A 9000 8505.000 2 94.500 94.500 94.500 94.500 1.200 94.500 l MO19A 600 639.420 1 106.570 106.570 106.570 106.570 0.000 106.570 s PG20A 25000 27230.000 1 108.920 108.920 108.920 108.920 0.020 108.920 l PT24A 12100 13324.520 1 110.120 110.120 110.120 110.120 0.000 110.120 Market Summary as at May 12, 2015 Equity Official List Session State ................................................................... closed Number of trades ............................................................. 192 Volume Traded ................................................................. 7,908,460 Value of € denominated securities .................................... 9,000,402.99 Value of US$ denominated securities ................................ 0.00 Value of GBP£ denominated securities .............................. 11,250 Current Index ................................................................... 3782.529 Previous Index ................................................................. 3794.753 Change in Index (%) ......................................................... -0.322% 6pm Holdings plc .......................... 0.750 1.35% Malta International Airport plc ....... 3.460 0.00% Bank of Valletta plc ........................ 2.279 -0.04% MaltaPost plc ................................. 1.450 0.00% FIMBank plc .................................. 0.450 0.00% Medserv plc .................................. 2.200 0.00% GlobalCapital plc ........................... 0.800 0.00% Mapfre Middlesea plc .................... 1.220 0.00% GO plc ........................................... 2.980 -0.63% MIDI plc ........................................ 0.285 0.00% Grand Harbour Marina plc ............. 1.900 0.00% Plaza Centres plc ........................... 0.951 0.63% HSBC Bank Malta plc ..................... 1.870 -0.53% RS2 Software plc............................ 3.160 0.00% International Hotel Investments plc 0.690 -1.43% Simonds Farsons Cisk plc ............... 3.525 0.00% Island Hotels Group Holdings plc ... 1.020 0.00% Tigné Mall plc ................................ 0.800 0.00% Lombard Bank Malta plc ................ 1.890 0.00% Pefaco International plc ................. 2.190 0.00% Malita Investments plc ................... 0.880 0.00% Santumas Shareholdings plc ......... 1.995 0.00% Money Market Report for the week ending May 8, 2015 ECB Monetary Operations On Monday, May 4, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, May 5, and attracted bids from euro area eligible counterparties of €95.23 billion, €13.25 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, May 6, the ECB conducted an eight-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 0.63% 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 181-day bills maturing on November 5, 2015. Bids of €23.00 million were submitted, with the Treasury accepting €8.00 million. Since €21.64 million worth of bills matured during the week, the outstanding balance of Treasury bills decreased by €13.64 million, to stand at €192.55 million. The yield from the 181-day bill auction was 0.00%, unchanged from the bids with a similar tenor issued on April 17, 2015, representing a bid price of 100.00 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 181-day bills maturing on August 14 and November 12, 2015, respectively. Market commentary: The Bank of England and the UK economy The high hopes of investors on Fri- day, the rally in equity markets and the start of a timid rebound in Eu- ropean sovereign bonds were short lived, with stocks across the globe posting losses on Monday, while bonds resumed their decline pushing yields higher. US stocks retreated after the euphoric effects of a positive jobs report faded away, while the UK's FTSE 100 witnessed large profits taking after last week's elections confirmed David Cameron as Prime Minister and fuelled the largest daily advance that British equities have seen since January. In Europe, stocks opened lower for a second day amid the ongoing Greek crisis and the summit held yesterday, although proving positive, did not manage to produce material results, leaving Greece to continue negotiating its way out of an ever worsening financial situation. On Monday, after a scheduled Monetary Policy meeting the Bank of England announced that it was leaving its main refinancing benchmark unchanged at 0.5% and it would maintain its QE programme in place, holding its Asset Purchase Plan at its current level. Investors will surely pay particular attention to BoE's chairman as Mark Carney is expected to present the Central Bank's latest economic forecasts today. While analysts have recently been betting that a Conservative win in last week's election would pressure the BoE to counter-balance tight fiscal policies with accommodating monetary policies, aimed at keeping interest rates at record low and continuing to supply liquidity to the economy, the Central Bank's forecasts due this week may paint a different scenario. In fact, contrary to the rest of Europe that has been struggling to fight off an impending recession and an alarmingly dangerous deflationary environment, the UK economy has been growing for the past straight nine quarters, unemployment has been steadily declining and home prices have been soaring to a point that some economists believe they are approaching bubble levels. In this context, if economic data continue to show a strong recovery, the BoE may surprise investors and be forced to follow into the Federal Reserve's footsteps by starting to discuss a rise in interest rates ahead of its previously indicated mid-2016 time frame. A confirmation that the overall UK economy is in a much better shape than the rest of Europe came from the British government that announced it has sold another large portion of its stake in Lloyds Banking Group Plc, reducing its holdings in the bank to below 20%. The latest sale amounted to around GBP 634 million and it was realized above the average purchase price of 73.6 GBP paid during the part- nationalization of the bank, showing how the banking and the financial sector in UK is now stronger than the Eurozone banking sector, which is still struggling with legal charges, deleveraging balance sheets and the negative implications of the ongoing Greek crisis. Including the latest transaction, the UK Government has managed to recover over GBP 10 billion so far, while the recently confirmed Prime Minister has already stated his intention to reduce the State's holdings further, returning control of the bank to the public, capitalizing on favourable share prices in the process. In continental Europe, economists are now forecasting a 0.4% GDP expansion, fuelled by the massive liquidity injection financed by the ECB and the indirect positive contribution of multi-year low oil prices that seem to have begun to make their way into the real economy. Should these forecasts prove correct, this would be the strongest growth registered by the Euro area's economy since mid-2013 and the first time the Eurozone expanded faster than the UK since 2011. This article was issued by Paolo Zonno, Trader/Analyst at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, views and opinions provided in this article are 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 in this newspaper. MSE Index open: 3,425.973 low:3,416.284 high: 3,818.565 close: 3,782.529