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Nintendo smashes Switch sales view

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Market summary:

The Maltese market closed in the red on Wednesday, with the MSE total index ending the session 0.576% lower to 8,273.726 points. The best performer was MIDI plc, by adding 7.69% to close at 0.42, followed by a 1.62% jump of PG plc with a closing price of 1.88. The biggest fall was seen from HSBC Bank Malta plc with a 3.92% drop to close at 0.98, followed by a 2.44% slide of Medserv plc with a closing price of 0.80. Bank of Valletta plc and RS2 Software plc shed 0.95% to close at 1.04 and 2.04 respectively.

European stocks finished the session lower as traders assessed the competing forces bearing down on the euro area and governments tried to strike a balance between easing lockdowns and public health concerns. By the end of trading, the benchmark Stoxx 600 was slipping 0.35% to 334.34, the FTSE Mibtel had lost 1.31% to 17,159.31 and the Cac-40 retreated 1.11% to 4,433.38.

In US major indices turned a mixed performance on Wednesday, bringing an end to a rally that started on Monday following some dismal payroll figures. At the close, the Dow Jones Industrial Average was down 0.91% at 23,664.64 and the S&P 500 was 0.70% weaker at 2,848.42, while the Nasdaq Composite saw out the session 0.51% stronger at 8,854.39.

Nintendo smashes Switch sales view

Japan’s Nintendo Co Ltd said that its fourth-quarter profit soared 200% due to surging demand for its Switch games console, and that title Animal Crossing: New Horizons shifted a record 13.4 million units in its first six weeks.

The Kyoto-based gaming company posted operating profit of 89.4 billion yen for January-March.

Nintendo has defied scepticism over its ability to draw in consumers beyond a hardcore base in the Switch’s fourth year with the runaway success of Animal Crossing: New Horizons, which has become the console’s fastest-selling title since launching on March 20.

The popularity of the device and the coronavirus outbreak’s impact on supply chains has led to Switch shortages around the world, preventing the company from taking full advantage of pent-up demand.

Nintendo said it expects to sell 19 million Switch console units in the current financial year. Its forecasts are widely viewed as conservative.

This article was issued by Nadiia Grech, Junior 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.