Markets Summary and competition in the Chinese market | Calamatta Cuschieri

Maltese markets moved lower, with the MSE Equity Total Return Index closing down 0.844% at 9,660.44. MIDI P.l.c’s 3.73% gain, which saw it close at €0.70, was unable to outweigh the 6.04% loss recorded by Tigne Mall P.l.c and the 4.23% loss posted by FIMBank P.l.c, which saw the companies close at €0.90 and $0.68 respectively.

US Markets experienced their first fall following a rise in all major indexes for three consecutive sessions. The Nasdaq Composite decline by 0.68%, or 54.25 points, whilst the S&P500 closed 0.79%, or 23.13 points, lower. The Dow Jones Industrial Average also experienced a decline of 0.66% or 173.35 points.

European markets also faced their first decline after two sessions of high gains, as investors are awaiting more guidance from Central banks regarding hopes of a fiscal stimulus. The pan-European STOXX600 index started its day on a high, but reversed course towards the end of day to close 0.7% lower, whilst the London FTSE100 was down 0.90%, or 64.65 points. 

Xiaomi’s and Huawei’s Competition

Chinese phones manufacturer, Xiaomi, missed analysts’ estimations and faced slow revenue growth as fewer people are buying phones. Analyst Dan Barker stated that “Customers are generally holding existing smartphones for longer, with manufacturers hoping that 5G will provide compelling reasons for customers to upgrade their phones.’’

This news came about following China’s largest smartphone maker, Huawei, experienced a 31% increase in its shares. Xiaomi is facing competition from Huawei. However, it is seeking new ways to welcome additional revenue by investing in artificial intelligence and smart devices for households.

Alibaba’s delay in Hong Kong listing  

Alibaba, China’s largest e-commerce company, has postponed a $15 billion listing in Hong Kong due to political turmoil. Potentially, this deal could be launched next October, depending on the stability and conditions of the political environment at the time.

This listing, which could be the world’s largest equity deal for the year 2019 and the biggest follow-on share sale in 7 years, would give Alibaba reason to continue investing in technology and ‘’diversify its access to capital markets’’. Furthermore, Charles Li, CEO of Hong Kong’s stock exchange detailed that despite what is going on in the market, he is confident that companies like Alibaba will eventually find their home in Hong Kong.

This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, https://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.