Broadcom is in advanced talks to acquire Symantec | Calamatta Cuschieri

Markets summary on Tuesday and Broadcom in talks to acquire Symantec

The Maltese market closed in the red on Tuesday, with MSE Equity Total Return Index ending the session 0.113% lower, to 9,759.658 points. Best performer was BMIT Technologies plc by adding 2.8% to close at 0.55, followed by RS2 Software plc and MIDI plc which rose 1.89% and 1.56% to close at 1.62 and 0.65 respectively. Biggest fall was seen from Malita Investment plc. It shed 1.70% to close at 0.865, followed by 1.16% loss of International Hotel Investments plc.

European shares closed comfortably higher on Tuesday, with utilities and consumer stocks leading gains as investors brushed aside U.S. President Donald Trump’s threat to impose tariffs on an additional $4 billion of EU goods. The pan-European STOXX 600 index rose 0.4% in muted volumes, adding to its 0.8% rise on Monday after the United States and China agreed to return to the negotiating table after a breakdown in trade talks in May.

U.S. stocks ended in positive territory, after flipping between gains and losses throughout the session, despite global trade uncertainty weighing on international growth. The S&P 500 was up 0.3% to finish around 2,973, carving out a fresh all-time closing high. The Dow Jones Industrial Average advanced 0.3%, to end around 26,787, based on preliminary numbers. The Nasdaq Composite rose 0.2% to finish near 8,109.

Broadcom Inc. is in advanced talks to buy cybersecurity firm Symantec Corp.

The deal would mark Broadcom’s second big bet in software, following its $18 billion takeover last year of CA Technologies. That transaction spurred some investors to express concern that Broadcom Chief Executive Officer Hock Tan’s acquisition strategy was being stretched too far after playing a key role in consolidating in the $470 billion chip industry.

That deal also came after San Jose, California-based Broadcom abandoned a hostile pursuit of rival chipmaker Qualcomm Inc., when U.S. President Donald Trump blocked the transaction citing national security risks.

Symantec is the world’s biggest maker of cybersecurity software, providing products and services to more than 350,000 organizations and 50 million people, according to its annual report.

The company has faced a list of challenges in the past year, grappling with heightened competition, the abrupt departure of its chief executive officer, waning consumer interest in antivirus programs and a financial investigation that ended with restated earnings. The shares have gained about 17% this year, recovering from a 33% slump in 2018.

 

This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, https://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.

More in Business Comment
Markets Summary | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Markets Summary | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Markets Summary | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Markets Summary and Airbus Shares | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri