Markets creep higher | Calamatta Cuschieri

Markets cautiously advanced and Aramco hits daily price limit on debut

US markets nudged higher on Wednesday as investors took in the cautious tone from the US Federal Reserve and monitored progress on the US-China trade talks. The Dow Jones Industrial Average gained 29.58 points, or 0.11 percent, to 27,911.30 whilst the S&P 500 index added 9.11 points, or 0.29 percent to 3,141.63. The Nasdaq Composite Index meanwhile advanced 37.87 points, or 0.44, to close the session at 8,654.05.

European markets meanwhile slipped as investors kept their eyes on the outcome of big central bank meetings including new ECB President Christine Lagarde’s debut appearance and the UK election. The pan-European Stoxx 600 index lost 0.2 percent to 404.45 with Germany’s DAX closing flat at 13,080. The UK’s FTSE 100 also closed unchanged at 7,213.21.

Maltese markets also edged lower with the MSE Equity Total Return Index closing down just 0.088 percent at 9,407.686 on very light trading. Only one stock posted a change and that was Malta International Airport which lost 0.71 percent to €6.95 on a single trade of 150 shares.

 

Saudi Aramco topped the $2 trillion (1.6 trillion pounds) target sought by Saudi leader Crown Prince Mohammed bin Salman on Thursday as the state-owned oil firm’s shares soared for a second day, defying some scepticism about their long-term value. The IPO has become the world’s biggest, topping the $25 billion 2014 listing of China’s Alibaba, despite limited interest from foreign investors.

Aramco, whose shares gained the maximum 10% allowed by the Riyadh exchange on their first day of trading, hit 38.7 riyals ($10.32) on Thursday, before easing to 37.5 riyals, putting its market value at $2 trillion. The Saudi Crown Prince has made the Aramco initial public offering (IPO) the centrepiece of his plan to diversify the Kingdom’s economy away from its dependence on oil by using the $25.6 billion raised to develop other sectors.

The listing marks the end of a four-year saga over the part-privatisation of Saudi Arabia’s largest revenue earner, forging a sense of jubilation and relief among ministers and company executives.
 

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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