< Back to News

Markets continue their climb

Financial_Markets_5

US markets climbed on Wednesday, adding to several straight sessions of gains as economic data pointed to less severe damage from the coronavirus pandemic than originally feared. The Dow Jones Industrial Average surged 527.24 points, or 2.1 percent, to 26,269.89 with the S&P 500 climbing 42.05 points, or 1.4 percent, to 3,112.87. The Nasdaq Composite Index gained 74.54 points, or 0.8 percent, closing the session at 9,682.91. The Nasdaq closed just 1.4 percent away from its all-time high of 9,817.18 in February.

European markets also traded higher with investors looking past the domestic unrest in the US and turned to stocks as global pandemic lockdowns unwinded. The pan-European Stoxx 600 index surged 2.5 percent with the German DAX jumping nearly 4 percent, reaching its highest close since the 27th of February.

Maltese markets also climbed with the MSE Equity Total Return Index closing up 2.01 percent at 8,346.697 points. RS2 Software Plc led the gains as shares jumped 14.57 percent to €2.28, followed by International Hotel Investments Plc, up 6.36 percent at €0.585. Plaza Centres Plc meanwhile led the losses with shares down 8.95 percent at €0.865 on a single trade of 2,900 shares.

Warner IPO takes flight

New stock of Warner Music Group Corp jumped 8% on its public debut on Wednesday after the world’s third-largest recording label sold shares in its $1.9-billion initial public offering which was listed on the Nasdaq. The deal, the biggest U.S. listing so far in 2020, marks a further sign of recovery for the U.S. IPO market, which was hampered in March by plunging stock prices caused by the COVID-19 pandemic.

The stock opened at $27 and extended gains in early trading to $28.75. The company had initially proposed to sell 70 million shares at a target range of $23-$26 per share before increasing the offering to 77 million class A shares at $25 per share, valuing it at $12.75 billion. The IPO equips Warner, which has been acquisitive in recent years, with public stock to potentially make further acquisitions, Chief Executive Stephen Cooper said in an interview.

This article was issued by Peter Petrov, 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.