< Back to News

BMW losses almost EUR 666 million

Financial_Markets_4

Market summary

The Maltese market closed in the red on Tuesday, with the MSE total index ending the session 1.193% lower to 7,890.887 points. The best performer among the stocks was FIMBank plc with a 2.63% surge to close at 0.39, followed by a 1.09% jump of Plaza Centres plc. The biggest fall was seen from Malta Properties Company plc, which slid 5.36% to close at 0.53. Followed by a 4.59% drop of Malta International Airport plc and a 3.23% shed of HSBC Bank Malta plc with a closing price of 5.20 and 0.90 respectively. Bank of Valletta plc also closed on a negative note, 3.09% loss to 0.94.

European stock markets finished mostly higher on Tuesday as investors kept tabs on the ongoing haggling on Capitol Hill around a proposed fourth round of fiscal stimulus spending in the US. The Stoxx 600 dipped 0.07% to 363.39, alongside a 0.36% fall on the German Dax to 12,600.87. The Cac-40 meanwhile ended up by 0.28% to 4,889.52, while the FTSE Mibtel climbed 1.21% to 19,613.95 and Spain’s Ibex 35 was up 0.67% to 7,021.60.

Wall Street’s main stock market gauges finished higher on Tuesday, buoyed by reports of possible further fiscal stimulus in the pipeline and some positive news on the pandemic front. The Dow Jones Industrial Average ended the session up 0.62% at 26,828.47, the S&P 500 added 0.36% to 3,306.51, and the Nasdaq Composite was 0.35% firmer at 10,941.17.

BMW losses almost EUR 666 million as sales slide during lockdowns

BMW expects to make an operating profit this year despite losing 666 million euros in the second quarter after sales of its luxury cars slumped during coronavirus lockdowns.

The German manufacturer of BMWs, Minis and Rolls-Royces, said deliveries had begun to recover, including in China, but the rebound would not be enough to make up for the shortfall in sales lost to the pandemic.

Shares in BMW fell 3% following the results with some analysts saying they had not expected such a big loss in earnings before interest and taxes.

BMW also said its outlook did not factor in the potential impact of a second wave of COVID-19 infections, nor the prospect of a more sustained or deeper recession in its key markets.

This article was issued by Nadiia Grech, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view 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 Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.