Advert

Market Analysis

  • Foot Locker – A contrarian trade with significant upside potential’

    Foot Locker’s recent weakness amid concerns about market share loss has created “an excellent opportunity to buy,” Morgan Stanley analyst Jay Sole wrote in a note, upgrading shares to overweight from equal weight. Shares in Foot Locker have been...

  • Leading and lagging indicators

    Investing in financial markets requires its fair share of decision making. Assuming individuals are rational in their decisions, market knowledge would want to be known beforehand for a better understanding of the state an economy is in. In...

  • Société Générale shares – Banking on the banks

    Société Générale shares – Banking on the banks

    Société Générale issued results on Wednesday and we see no reason post results to change our price target of €54 on the stock. We see any weakness in the stock as a buying opportunity. When we first started covering Société Générale (29/05/2017),...

  • Ryanair – these shares have wings

    Ryanair – these shares have wings

    After the company reported results, we will continue maintaining our price target of €21 on the stock. Most importantly, we are comfortable with the positions we hold in our funds. About the Company Ryanair is headquartered in Swords, a suburb of...

  • Credit spreads tighten further, but for how long?

    One of the recurring themes we have been talking about over recent months has been the robustness of credit markets in general, particularly the riskier part of the spectrum such as High Yield and Emerging Market credits, and the remarkable...

  • My top five equity picks for the second half of the year

    2017 started off with a bang for European equity markets, closing off the first six months 7% higher with the S&P 500 beating the European index once again, coming in above the 9% return. Despite the positive performance, we expect equities to...

  • The momentum in Emerging Markets in 2017

    It is to no surprise that capital inflows over the past years have diverged towards emerging markets (EM). The search for yield, led investors to shift their assets into such zones despite the fact that risks of governance, political uncertainty,...

  • Bond or bond fund?

    Bond or bond fund?

    There are many misconceptions around regarding the difference between a bond and a bond fund. This article will serve to outline the key differences between both instruments, and what to look out for when investing in each security. By definition,...

  • China-mounting pressures over future GDP growth

    China-mounting pressures over future GDP growth

    Over the past 25 years, gross domestic product (GDP) annual growth rate in China averaged 9.88%. However, woes of a declining momentum in terms of growth continued to hinder investors’ sentiment. This was reflected in market volatility experienced...

  • Liquidity concerns in a weak market

    Liquidity concerns in a weak market

    One out of the many considerations investors should make in investment decisions is to ascertain how liquid an instrument is, both at the time of purchase as well as at the time of divestiture. Equities, bonds, currencies and collective investment...

  • Why do most bonds trade OTC?

    Why do most bonds trade OTC?

    Following the issuance of bonds on the primary market, bonds can either trade on an exchange or what is known as Over-The-Counter (OTC). In Malta, both government and corporate bonds trade on the Malta Stock Exchange (MSE) from one MSE account to...

  • Investing in European technology

    Investing in European technology

    Technology is often associated with the US. The impression exists that if it is cutting edge it must be coming from Silicon Valley. This is amusing, as two firms that have shaped the way we interact and the way we play music immediately come to mind.

  • Points to look out for in corporate earnings

    A multinational corporation is one whose operations are set up in one or more jurisdictions other than the domestic country of the company. When a company reports its financial statements, usually on a quarterly basis, results are usually...

  • The paranoia of buying bonds below par

    The paranoia of buying bonds below par

    We had family come over to our place over the weekend for Sunday lunch. The children were enthusiastic, playing with some new toys they got whilst the adults gathered around the dining room table for some tea and biscuits, an ideal setup to unwind...

  • EM HY bonds-the continuation of gains

    EM HY bonds-the continuation of gains

    Year-to-date EM high yield (HY) corporate bonds continued to show their resilience, despite the fact that expectations of monetary tightening continued to increase with the market now pricing a 100 percent June hike. Is it the greed of investors...

  • A game of percentages

    A game of percentages

    In the world of finance, percentage return is probably the performance common currency. In other words, if you gain ten percent from an equity investment, 10% from dividends, 10% from a derivative, 10% on 100 thousand and 10% on one thousand; 10%...

  • A look at real estate investments

    A look at real estate investments

    Real estate as an Investment tool can take on many forms. Investors have a choice as to whether to invest directly in physical property or indirectly expose their portfolios to real estate publicly traded securities. The former is a popular...

  • EM and the selective overweight rationale

    EM and the selective overweight rationale

    As I have opined in my previous writings, investors tend to monitor the movement in the US in confront of major emerging market (EM) currencies due to the sensitivity element. In theory EM dollar denominated debt tend to weaken in value when the...

  • Maltese investors and interest payments

    Maltese investors and interest payments

    It is often bewildering how often investors refuse to accept good advice, and a particularly persistent stumbling block is investor’s reluctance to invest in anything that does not pay interest. I cannot pretend to have researched the subject, but...

  • Why Le Pen won’t work

    Why Le Pen won’t work

    Sunday’s first round vote in the French elections produced no surprises as both frontrunners, Emmanuel Macron and Marine Le Pen, progressed to the second round vote, to be held on May 7, whereby one of the two will become the successor to current...

Advert
Advert