Issue link: https://maltatoday.uberflip.com/i/517560
maltatoday, WEDNESDAY, 27 MAY 2015 12 Business Today Regular market closed – 26/05/2015 Symbol Code Volume Traded Value Traded Trades High Price Low Price Open Price Close Price Change Twap t BOV 34970 79164.780 10 2.275 2.255 2.275 2.255 -0.025 2.264 l GO 2900 8826.000 5 3.050 3.040 3.050 3.050 0.000 3.043 t HSB 24346 45031.480 14 1.851 1.840 1.851 1.840 -0.010 1.850 l MIA 12500 42087.500 5 3.370 3.360 3.360 3.370 0.000 3.367 l MLT 46630 41847.000 4 0.900 0.885 0.885 0.900 0.000 0.897 t G16A 6306 6649.680 1 105.450 105.450 105.450 105.450 -0.020 105.450 t G17C 54100 59347.700 6 109.700 109.700 109.700 109.700 -0.010 109.700 t G17D 10000 10783.000 2 107.830 107.830 107.830 107.830 -0.070 107.830 t G18A 9318 11472.320 1 123.120 123.120 123.120 123.120 -0.370 123.120 s G19A 116469 145889.070 2 125.260 125.260 125.260 125.260 0.020 125.260 t G20B 43800 51994.980 3 118.710 118.710 118.710 118.710 -0.070 118.710 s G20E 77000 81881.800 1 106.340 106.340 106.340 106.340 0.120 106.340 s G21A 76870 95710.840 2 124.510 124.510 124.510 124.510 0.030 124.510 t G23A 34942 46287.670 1 132.470 132.470 132.470 132.470 -0.070 132.470 s G28A 25000 33732.500 2 134.930 134.930 134.930 134.930 0.130 134.930 s G28B 47000 61819.100 6 131.530 131.530 131.530 131.530 0.140 131.530 s G29A 55000 76901.000 2 139.820 139.820 139.820 139.820 0.180 139.820 s G30A 27400 39066.340 4 142.610 142.500 142.500 142.610 0.190 142.580 s G31A 85000 121796.500 3 143.290 143.290 143.290 143.290 0.190 143.290 s G32A 63500 86461.600 5 136.160 136.160 136.160 136.160 0.180 136.160 s G32B 70000 93331.000 2 133.330 133.330 133.330 133.330 0.170 133.330 s G33A 114000 150195.000 5 131.750 131.750 131.750 131.750 0.170 131.750 s G34A 245700 319336.290 9 129.970 129.970 129.970 129.970 0.160 129.970 s G40AA 165200 185635.240 16 112.370 112.370 112.370 112.370 0.070 112.370 l BV20A 45700 49589.070 2 108.510 108.510 108.510 108.510 0.000 108.510 s CF19A 5000 5200.000 1 104.000 104.000 104.000 104.000 0.500 104.000 s GF21A 7500 7950.750 2 106.010 106.010 106.010 106.010 0.300 106.010 s IH20A 6000 6210.000 4 103.500 103.500 103.500 103.500 0.400 103.500 t IH25A 136300 149698.400 34 112.000 108.000 109.300 108.000 -1.300 109.830 s MB19A 36000 38733.100 2 107.600 107.310 107.600 107.310 0.100 107.590 s MI15A 9000 8784.000 1 97.600 97.600 97.600 97.600 0.050 97.600 s MS23A 2400 2664.000 1 111.000 111.000 111.000 111.000 0.900 111.000 Market Summary as at May 26, 2015 Equity Official List Session State ................................................................... closed Number of trades ............................................................. 158 Volume Traded ................................................................. 1,695,851 Value of € denominated securities .................................... 2,164,077.71 Value of US$ denominated securities ................................ 0.00 Value of GBP£ denominated securities .............................. 0.00 Current Index ................................................................... 3845.107 Previous Index ................................................................. 3859.249 Change in Index (%) ......................................................... -0.366% 6pm Holdings plc .......................... 0.706 0.00% Malta International Airport plc ....... 3.449 -0.03% Bank of Valletta plc ........................ 2.255 -1.10% MaltaPost plc ................................. 1.500 0.00% FIMBank plc .................................. 0.451 0.00% Medserv plc .................................. 2.155 0.00% GlobalCapital plc ........................... 0.800 0.00% Mapfre Middlesea plc .................... 1.221 0.00% GO plc ........................................... 2.990 0.00% MIDI plc ........................................ 0.290 0.00% Grand Harbour Marina plc ............. 1.900 0.00% Plaza Centres plc ........................... 0.951 0.00% HSBC Bank Malta plc ..................... 1.845 -0.27% RS2 Software plc............................ 3.179 0.00% International Hotel Investments plc 0.680 0.00% Simonds Farsons Cisk plc ............... 3.650 3.55% Island Hotels Group Holdings plc ... 1.020 0.00% Tigné Mall plc ................................ 0.800 0.00% Lombard Bank Malta plc ................ 1.950 0.00% Pefaco International plc ................. 2.190 0.00% Malita Investments plc ................... 0.869 -0.11% Santumas Shareholdings plc ......... 1.995 0.00% MSE Index open: 3,447.197 low: 3,447.197 high: 3,859.249 close: 3,845.107 Money Market Report for the week ending May 22, 2015 ECB Monetary Operations On Monday, May 18, the European Central Bank (ECB) announced its weekly main refinancing operation (MRO). The auction was conducted on Tuesday, May 19, and attracted bids from euro area eligible counterparties of €88.40 billion, €2.22 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 20, 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 0.63% 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 91- day bills maturing on August 21, 2015. Bids of €30.00 million were submitted, with the Treasury accepting €3.00 million. Since no bills matured during the week, the outstanding balance of Treasury bills increased by €3.00 million, to stand at €194.55 million. The yield from the 91-day bill auction was -0.001%, down by 0.1 basis point from the bids with a similar tenor issued on May 15, 2015, representing a bid price of 100.0003 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 28, and November 26, 2015, respectively. Market Commentary: Time to sell European Equities? Over the weekend we learned of worrying news out of Spain, as anti-austerity parties gained sig- nificantly in regional elections, worrying investors that the coun- try could turn into a Greek drama. The only difference this time is that Spain is larger, much larger. To give you an idea of the dif- ference between the two, and why there is significant cause for concern at this point, Spain's economic size measured by gross domestic product (GDP) is almost six times larger than Greece's. Hence, the potential impact of up- heaval on the continent is much greater should we see the rise to power of anti-EU parties which will threaten the existence of the union and sow a large degree of uncertainty. Should the probabili- ty of this event keep rising I would be fearful of any European equity positions as these are bound to take a beating. The greatest problem in my opinion is that policy makers cannot really afford to take any hits to the economy when they are currently firing on all cylinders. What would they do should Spain threaten to leave the currency bloc or the union itself? My guess is that recession will be back on the table should this event materialise and policy makers have very few bullets left in their magazine. The Greek government is priming investors for another cliffhanger on June 5. While Greek Prime Minister Alexis Tsipras's spokesman Gabriel Sakellaridis insisted on Monday that the government will pay salaries and pensions due at the end of this month, he refused to be drawn in on whether the administration will be able to find the roughly 300 million euros it's due to pay the International Monetary Fund at the end of next week. Greece looks set to miss the May 31 deadline German Chancellor Angela Merkel and French President Francois Hollande set last week for reaching an agreement on aid, with no more meetings of euro-area finance ministers scheduled before then and its creditors still to sign off on Tsipras's economic plans. Therefore serious talks of default are back on the table as it seems Greece doesn't have the money and won't pay what it owes the IMF next month. Where does this leave us? In the short term I expect some backlash from the increased equity risk premium associated with the sovereign problems in the euro area, therefore I would be looking to take some profits at this point and downsizing the overweight position. The market is already reacting to this, although many exchanges were closed yesterday, with the FTSE MIB and ASE falling 2.09% and 3.11%. By way of a reminder, we've got a significant amount of data releases from the US this afternoon with durable goods orders, capital goods orders, FHFA house price index, S&P/Case Shiller house price index, May flash composite and services PMI's, new home sales, consumer confidence, Richmond Fed manufacturing index and the Dallas Fed manufacturing activity index. This article was issued by Simon Psaila, Trader/Analyst 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.