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Market Analysis

  • Fasten your seat belts – turbulence ahead

    It seems as though efforts to seek an adequate risk-reward trade-off are proving difficult to futile for many. The German 10Y Bund has historically broken the zero yield barrier yesterday as investor monies continue to rush into safe haven assets,...

  • FIMBank reaches a new six-year high

    FIMBank reaches a new six-year high

    The MSE Share Index recovered some of yesterday’s losses and rebounded from its lowest level in five-months. The Index added 0.11 per cent today to 4,436.520 points. Trading activity was spread across ten equities with four share prices...

  • We’re living in uncertain times

    Investors have quite a few issues to contend with these days, and most of them are quite a tough nut to crack. Is the fresh wave of QE by the ECB going to have its intended outcome? When is economic activity in the Eurozone going to finally pick...

  • Sins of an investor

    Many investors are unable to generate positive returns in a portfolio because of wrong decisions taken at the wrong time. Below are 5 most common mistakes investors make when they manage their portfolios: Halo effect – A company with a good growth...

  • Why do most bonds trade OTC?

    Why do most bonds trade OTC?

    Following the issuance of bonds on the primary market, bonds can either trade on an exchange or what is known as Over-The-Counter (OTC). In Malta, both government and corporate bonds trade on the Malta Stock Exchange (MSE) from one MSE account to...

  • Overconfidence bias

    Overconfidence bias is a bias in which people demonstrate unwarranted faith in their own intuitive reasoning, judgements and/or cognitive abilities. This overconfidence may be the result of overestimating knowledge levels, abilities and access to...

  • MSE Share Index retreats to a near 5-month low

    The MSE Share Index posted its third consecutive daily negative performance today as it eased by a further 0.22 per cent to 4,433.079 points – the lowest level since mid-January 2016. Trading activity was spread across eight shares, with two...

  • OECD – Low Growth Trap for the Global Economy

    OECD – Low Growth Trap for the Global Economy

    On Wednesday, the OECD said that the world’s economy is trapped in a weak growth environment and vulnerable to falling into another deep downturn unless governments take urgent action. Soft demand has discouraged investment and lead to a downgrade...

  • Sell in May and go away? Not quite

    Sell in May and go away? Not quite…not this time round…well at least as far as risky assets both in the US and the Eurozone are concerned. During the month of May, European and US High Yield markets registered an increase of 0.09% and 0.64%...

  • Markets take cue from Yellen’s comments

    US Federal Reserve Chairperson Janet Yellen spoke at Harvard University on a number of issues, namely on the financial crisis which emanated during 2007-2008 but most importantly when asked about the FOMC’s current monetary policy stance, she...

  • Malta Stock Exchange hits a 15-week low

    Malta Stock Exchange hits a 15-week low

    The MSE Share Index trended into negative territory for the seventh time in the last eight sessions with a further 0.2 per cent decline during this morning’s session to a fresh 15-week low of 4,464.315 points. The value traded during today’s...

  • Endowment bias

      Endowment bias is an emotional bias in which people value an asset more when they actually own it than when they do not. Endowment bias is inconsistent with standard economic theory, which asserts that the price a person is willing to pay for a...

  • ECB buying corporate debt- any consequences?

    As most market participants might be aware, one of the most prominent actions taken by the European Central Bank (ECB), which hit the headlines on the 10th of March was the ECB’s expansion in terms of quantitative easing (QE) in regard the...

  • Multinational corporations and translation effects

    A multinational corporation is one whose operations are set up in one or more jurisdictions other than the domestic country of the company. When a company reports its financial statements, usually on a quarterly basis, results are usually...

  • Deal or no deal? - Bayer versus Monsanto

    Deal or no deal? - Bayer versus Monsanto

    About Bayer AG (market cap €71 billion) Bayer AG produces and markets healthcare and agricultural products, and polymers. The Company manufactures products that include aspirin, antibiotics, anti-infectives, and cardiovascular, oncology, and...

  • How has credit fared so far in May?

    How has credit fared so far in May?

    The sharp tightening trend from mid-February to the end of April has ended. News from China is seemingly deteriorating, US profit figures have been choppy whilst interest rate expectations in the US may start rising rather than remaining in the...

  • Markets jitter on Fed signals

    Markets jitter on Fed signals

    Originally this week’s write-up intended to focus on the current situation in Venezuela, whereby the political saga escalated to very concerning levels with the President declaring a state of emergency. However, despite being aware that Wednesday...

  • Eight declines drag MSE down

    Eight declines drag MSE down

    The MSE Share Index retreated by 0.36 per cent to 4,551.609 points as the declines registered by eight shares outweighed the gains in another three equities. Despite the broad trading activity, the total value of equities traded today remained on...

  • Top European equity performers in the past year

    Investors that have held on to European equities in the past year are probably in the red. There is a good reason; from the 50 companies in the Euro Stoxx 50, only a handful of European equities increased in price in the past year. The following...

  • Opportunities in real estate Investments

    Having finally sat down to watch ‘The Big Short’ over the weekend, I can recommend the film as a worthy eye opener to the fundamental cause behind the meltdown of the US housing market in 2008, which unfortunately triggered the eventual global...

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