Heineken performance beats expectation | Calamatta Cuschieri

The article gives an overview of the market on Wednesday. It also explores France’s unemployment and Heineken’s financial performance

An image of a Heineken beer
An image of a Heineken beer

European markets closed higher on Wednesday following new growth data that showed European economic growth was stabilizing following a number of downward revisions. The STOXX 600 index was up 0.6% and the DAX was up 0.4%. Wall Street. The FTSE was the largest gainer of the major European Indices as it closed 0.8% higher following declining inflation data. Heineken jumped 6% following better than expected sales while Akzo Nobel gained 3.3% following a good earnings report.

The major US indices closed in the green on Wednesday as investors got renewed hope that a US-China trade deal was possible before the March deadline when a number of new US tariffs are scheduled to be imposed. A trade deal prior to the date would avoid these mutually crippling tariffs from being imposed. The Dow jones closed 117 points higher while the S&P500 gained 0.3% to close at 2,753. The gains were driven by energy stocks as they gained 1% as the West Texas Intermediate future climbing 1.5% to $53.90. Hilton Worldwide jumped 6% following a stellar earnings report while Freeport McMoRan gained almost 7% after Morgan Stanly upgraded outlook by Morgan Stanly.

The MSE equity index lost 0.35% on Wednesday to close at 8,919.64. Midi plc was the largest loser, losing 3.03% on one trade, Malta international Airport plc and HSBC plc also lost 1.54% and 0.58% respectively. The only gainer for the day was Plaza Business Centre plc closing 2.00% higher while.

French unemployment drop

Following a rocky year for Emmanuel Macron, he now has some good news coming his way as the French economy is adding jobs and unemployment is on the decline. Unemployment in France is now close to a ten-year low. The unemployment rate is now at 8.8 percent down from 9.1% the previous quarter.

Positive economic news for Europe’s second largest economy should yield higher growth both in Europe and worldwide. 

Heineken Stellar earnings

Heineken posted their quarterly results on Wednesday showing an increase in revenue and price growth. Operating profits increased by 6.3% to €3.9 billion. The Dutch brewing company also decreased their cost of production that offset cost inflation in some jurisdictions. The company announced that its full year dividend will be set at €1.60 with the last dividend for the year being paid in May.

In pre-market trading the stock was up 4%.


This article was issued by Aaron Saliba, 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.

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