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Markets Summary

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The MSE Equity Price Index surged by a minimal amount as a result of four companies outweighing the declines of another two main companies. Medserv plc rose in value by 0.8% to reach €1.26 price level, this increase was the highest since late November 2017. Mapfre Middlesea plc appreciated in value by 0.9% to €2.16 level. The best performing local equity was Lombard Bank Malta plc which increased by 5.7% to €2.24. Within the banking sector, HSBC Bank Malta plc regained momentum of 0.7% from its lowest since March 2004 from €1.42 to €1.43. Malta International Airport plc and MaltaPost plc decreased by 1.3%, €7.70 and 3.8%, €1.28 respectively. While PG plc continued trading at its all-time high of €1.75.

European shares grounded due to Fed’s upcoming meeting

European stock closed fractionally lower due to energy shares giving a big boost and banks lost upward momentum ahead of a likely interest rate cut from the U.S. Federal Reserve. The pan-European STOXX 600 index fell by 0.1% as a result of investors looking for a safe-haven in defensive sectors such as consumer staples and healthcare after the Saudi Arabian oil facilities increased geopolitical tensions. The oil and gas sector decreased by 0.8% after news that the Saudi Arabia’s oil output will be fully restored before expectations. Investors are slightly on edge given the upcoming Fed’s policy meeting, the central bank is expected to cut rates further to help slowing down economic growth.

General Motors’ strike costing up to €100 million a day

General Motors is in line to lose hundreds of millions of dollars in production as a United Auto workers union strike against the automaker is running for the second consecutive day. This is not causing any unnecessary unrest in Wall Street or downgrading the automaker’s grade. Investors are not in panic mode because the company has sufficient cash on hand and its dealers have enough vehicle in stock to calm down the situation without causing problems for at least a week. If the strike lasts longer than a week, investors might start getting agitated, which might result in having a greater impact on the company’s shares.

One first day of the strike GM shares fell by 4% but the following day the stock rose by 2.9% as negotiations continued to progress. Tis leads to having the stock down by 1.5%. Investors are not anticipating that the strike against GM will have much, if any, impact on Ford Motor and Fiat Chrysler at this point in time. The union clearly stated to concentrate on negations with GM.

Huawei will invest $1.5 billion in its developer program

Huawei announced that it will invest $1.5 billion in its developer program over the upcoming 5 years. The company envisions to build a steady and open ecosystem to form part of it computing strategy. The Huawei Developer Program was first announced in 2015 and since then, one of China’s technology giant disclosed that it supported more than 1.3 million developers and 14,000 independent software vendors globally.

Deputy Chairman Ken Hu spoke at Huawei Connect 2019, an event for the company held in Shanghai, and said that the company wants to expand its program to an additional 5 million developers. Huawei also want to be a helping tool to partners to develop next generation intelligent applications and solutions. Later on this week, the company will disclose further details with regards to this program.

This article was issued by Peter Petrov, Trader at Calamatta Cuschieri. For more information visit, https://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.