Samsung Elec wins USD 6.6 billion Verizon order

Market summary

The Maltese market closed in the red on Friday, with the MSE total index ending the session 0.077% lower to 7,473.309 points. The one and only best performer was PG plc, it added 2.70% to close at 1.90. The biggest fall was seen from MaltaPost plc, which slid 4.55% to close at 1.05. Followed by a 0.88% drop of RS2 Software plc with a closing price of 2.26. Plaza Centres plc was down 0.53% to 0.935, while Bank of Valletta plc shed 0.44% to close at 0.90.

European stocks finished the week on a down note going into the long Labor Day holiday Stateside, weighed down by a renewed bout of selling on Wall Street. By the end of the session, the benchmark Stoxx 600 was 1.13% lower to 361.93, alongside a 0.82% drop for the FTSE Mibtel to 19,391.25, while Germany's Dax had declined 1.65% to 12,842.66.

US stock markets fell sharply again on Friday then rebounded in a volatile day of trading as investors soured on the high-flying tech companies that had driven markets to record highs. The S&P 500 fell 3% at the low point on Friday but ended down 0.8% and the Dow Jones Industrial Average ended down 0.56%. The tech-heavy Nasdaq Composite retreated 1.27% after regaining morning losses of 5%.

Samsung Elec wins USD 6.6 billion Verizon order

Samsung Electronics said it had won a USD 6.64 billion order to provide wireless communication solutions to Verizon in the United States, a major win for the South Korean firm in the next-generation 5G network market.

Samsung’s global prospects for its network business have improved following US sanctions on its bigger rival Huawei.

Verizon CEO Hans Vestberg told CNBC in July last year that Verizon doesn’t use any Huawei equipment. Verizon had already been a Samsung customer before the order.

Verizon is believed to be Nokia’s biggest customer, JP Morgan research said in a July note.

Samsung said in a regulatory filing the period of the contract, which Samsung’s US unit signed with Verizon Sourcing LLC, is from June 30, 2020 to December 31, 2025.

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.