Markets shut for Memorial Day | Calamatta Cuschieri

Markets summary, Alibaba considers second IPO and Fiat-Chrysler discusses Renault merger

US markets were closed on Monday for Memorial Day whilst UK markets were also closed for their Spring Bank Holiday.

European markets rose after car-making giants Fiat Chrysler confirmed that they are discussing possibilities for a merger. The STOXX 600 index rose 0.2 percent with most bourses posting gains after results of European parliamentary elections showed strong support for pro-European Union parties.

Maltese markets meanwhile moved lower, with the MSE Equity Total Return Index closing down 0.734 percent at 9,767.226 points. Shares in Bank of Valletta Plc closed up 0.75 percent at €1.34 whilst HSBC Bank Malta Plc closed down 2.94 percent at €1.65. Malta International Airport plc weighed on the index as its shares closed 5.06 percent lower at €7.50.

Alibaba considers second IPO

Chinese E-commerce giant, Alibaba is considering raising as much as $20 billion through a listing in Hong Kong following its 2014 record $25 billion listing in New York. The deal, the biggest follow-on share sale in seven years globally, would give Alibaba the resources it needs to keep investing in technology. Since its U.S. listing, Alibaba has nearly doubled in size to become the largest-listed Chinese company with a market value of more than $400 billion.

The e-commerce giant is working with financial advisers on the offering and is aiming to file an application confidentially in Hong Kong as early as the second half of 2019. Sources with knowledge of Alibaba’s plans cautioned that many details were not yet clear, including the final planned size. One person with direct knowledge said it was more likely to be between $10 billion and $15 billion.

Fiat-Chrysler discusses Renault merger

Fiat Chrysler is in advanced discussions to merge with France’s Renault as the carmakers seek to join forces to tackle the structural challenges facing the global auto industry, according to people informed familiar with the matter. The talks are focused on the potential for co-operation between Fiat Chrysler and Renault, which is the dominant partner in the alliance with Nissan and is seeking to secure a future for the partnership following the arrest of long-time leader Carlos Ghosn eight months ago in Tokyo.

The agreement may ultimately lead Fiat Chrysler to join the Renault-Nissan-Mitsubishi Alliance in the future, some sources added, while also warning that this outcome would mean taking a complicated path that would involve winning over Japan’s Nissan.
 

Disclaimer: This article was issued by Peter Petrov, 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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