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Market Analysis

  • Alibaba – A new name on our equity list

    We started coverage of Alibaba with a Buy recommendation and a price target of $225 on the stock. We like Alibaba for multiple reasons, however, the main reasons for our interest in this company are as follows: 1. Strong fundamentals. Strong free...

  • US trade tariffs vs the EU (German) model

    Faithful to his promises made during the electoral campaign, President Trump in the last months gave the go-ahead to the application of tariffs on imports from EU, China, Canada, Mexico and Japan. Although on the China front, the trade war seems...

  • Apple shares continue making shareholders proud

    Apple reported very promising results for Q3 2018 (their financial year ends in September). Factoring in the results into our model, we increased our price target from $190 to $208. However, we changed our stance from Overweight to Hold. Given its...

  • Credit markets recoup but pressures persist

    Credit markets recoup but pressures persist

    Credit markets continue to be pressured by a more hawkish tone by leading Central Banks, but also by the wider picture of geopolitical tensions, such as the continued uncertainty surrounding the trade war preposition. In July, to a certain extent,...

  • Overview of the Bank of Japan’s decision

    Overview of the Bank of Japan’s decision

    Having been on tip toes in the days leading up to Tuesday’s announcement from the Bank of Japan (BoJ) regarding their quantitative easing policy, bond markets rallied during the Tokyo trading day, with the yield on Japan’s benchmark 10-year debt...

  • What has changed for the BOV equity investor?

    What has changed for the BOV equity investor?

    Tuesday marked a significant day in the life of a Bank of Valletta equity investor, as the bank for the first time since 1991 has announced that it will not be declaring either interim or final dividends. This was triggered by a provision against...

  • The importance of benchmark yields in the corporate bond market

    The importance of benchmark yields in the corporate bond market

    Bonds issued by corporations, better known as Corporate Bonds, (which are more commonly termed as either Investment Grade Corporate bonds and/or High Yield bonds), are issued on the primary market and trade on the secondary market. Bonds are...

  • Profiling bond risk (1)

    Profiling bond risk (1)

    The bond section of an investors’ global portfolio is typically considered to be the safest asset class, which is why investment advisors typically include them in order to preserve the wealth of their clients. Bonds are popular because they are...

  • Credit remains volatile in June as spreads widen

    Credit remains volatile in June as spreads widen

    June was one of the toughest months for credit markets and risky assets during the first half of the year, and was pretty much a reflection of what characterised credit markets in H1-2018. Risk-off mode, risk aversion, and flight to safety trades...

  • ASML shares – Buy on weakness

    ASML was always a top holding in the Calamatta Cuschieri Euro Equity Fund and we continue to believe in the long-term story of the group. We have a €200 Price Target on the Stock. Shares of ASML are up 200% over a period of 5-years. ASML does not...

  • Weekly update dominated by tariff threats

    Weekly update dominated by tariff threats

    Share markets continue to be mixed. US shares were mostly flat last week and negative this week, with strong data offset by worries about a more hawkish US Federal Reserve (Fed) and a potential trade war with China. The euro main equity benchmark...

  • To hedge or not to hedge?

    To hedge or not to hedge?

    2018 has been characterised by a number of political and economic risks which have impacted capital markets negatively. From the threat of trade wars, to divided European governments, to shifting economic policy by central banks; these are just a...

  • Credit markets weaken heading into summer months

    Credit markets weaken heading into summer months

    May turned out to be a negative month for Malta Government Stocks as yields rose sharply, with the CC Malta Government Stock Index (Total Gross Return) registering a decline of 0.56%. This is reflective of the fact that yields on Malta Governments...

  • What level of dividend is suitable in the local market?

    What level of dividend is suitable in the local market?

    Recently I was posed a question about what size of dividend would be deemed adequate for potential investors in the local market. Firstly, I would like to tackle the issue of a “local market” that very often is thrown around in discourse as though...

  • Understanding the key drivers of an economy

    Understanding the key drivers of an economy

    Asset managers, economists, analysts and the majority of those working in the financial services sector, and those who have a particular vested interest on the sanity of the global economy, regularly discuss and closely monitor key economic data...

  • The recent exodus from emerging market credit

    The recent exodus from emerging market credit

    To the surprise of many, or of the few, over the past days, those assets which a few days ago were considered to be the winners are now the remarkable losers. I am referring to emerging market (EM) credit that recently was hammered by primarily a...

  • Trump, this time it’s Iran, who is next?

    Trump, this time it’s Iran, who is next?

    It is already old news, Trump has announced that the US will withdraw from the Iran nuclear deal and restore sanctions, is this a game changer from a political, economic and eventual investment perspective? I will start with what will ultimately...

  • April awakening for credit markets

    April awakening for credit markets

    April was a relatively muted month for credit, in terms of economic data releases, insignificant swings in earnings announcements of high yield issuers, whilst the primary market, despite showing some signs of revival, remained tepid. Geopolitical...

  • Official GDP growth forecasts endorsed by fiscal advisory council

    Official GDP growth forecasts endorsed by fiscal advisory council

    The official real gross domestic product (GDP) growth forecasts for 2018 to 2021, respectively amounting to 6.1%, 5.3%, 4.8% and 4.6%, was within Malta’s endorsable range, the Malta Fiscal Advisory Council said. In its assessment of the...

  •  Apple surprises amid smartphone weakness

    Last Tuesday Apple announced financial results for the second quarter of the fiscal year 2018. Apple’s financial year ends in September, which is why the March quarter is the second quarter. The company posted quarterly revenue of $61 billion, or...