Markets retreat from highs | Calamatta Cuschieri

Market summary

US markets started the week lower on Monday as investors kept a close eye on trade negotiations and policy updates from central banks. The Dow Jones Industrial Average lost 105.46 points, or 0.4 percent, at 27,909.60, while the S&P 500 index edged down 9.95 points, or 0.3 percent, to 3,135.96. The Nasdaq Composite Index declined 34.70 points, or 0.4 percent, to close at 8,621.83.

European markets also struggled as the upcoming UK election and central bank meetings were the main highlights in investors’ calendars this week. The pan-European Stoxx 600 index lost 0.2 percent to 406.62 with the German DAX slipping 0.2 percent to 13,146.65. The UK’s FTSE 100 was also down 0.2 percent at 7,221.38.

Maltese markets also turned lower, with the MSE Equity Total Return Index closing down 0.312 percent at 9,393067 points. Midi Plc led the gains with shares down 2.91 percent at €0.50, followed by Bank of Valletta Plc which lost 2.86 percent at €1.02. International Hotel Investments Plc meanwhile posted the sharpest gains of the day with shares up 2.65 percent at €0.775.

Tesco looks to sell Asian business

Shares in Tesco rose more than 5% on Monday after Britain’s biggest retailer said it might sell its Asian businesses, in Thailand and Malaysia, which analysts valued at up to $9 billion. Pulling out of Asia would mark a further retreat toward Tesco’s core domestic market and a shift in strategy. If Tesco does exit Asia, the decision could be made by its new CEO, Ken Murphy, rather than incumbent Dave Lewis who is stepping down next year

It said the review was at an early stage and gave no details of the interest received in the businesses, which generate about 8% of the supermarket group’s total annual revenue and 10% of its profit. Celebrating its 100th anniversary, Tesco is five years into a UK-focused recovery plan launched by Lewis after an accounting scandal capped a dramatic downturn in trading.

Under its previous management Tesco made costly exits from Japan, the United States and China, starting a retreat from its once lofty global ambitions.
 

This article was issued by Peter Petrov, 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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