Markets under pressure | Calamatta Cuschieri

U.S. stocks closed mostly lower Thursday as manufacturing-related sectors logged big losses, offsetting a rally in social-media shares. The Dow Jones Industrial Average fell 0.5%, to 26,462.08. The S&P 500 index shed 0.03% to 2,926.17, with industrials and materials sectors leading the decline while the tech-centric Nasdaq Composite rose 0.2%, to 8,118.68.

European markets also slipped, weighed by the energy sector and drops from Finnish telecom company Nokia and Britian’s Barclays Bank. The pan-European Stoxx 600 index lost 0.4 percent, ending its eight day consecutive rally.

Maltese markets meanwhile moved higher, with the MSE Equity Total Return Index ending the session up 0.383%, to 9,450.585 points. The biggest gain was seen from BMIT Technologies plc, adding 1.9% to close at 0.535, followed by Malta Properties Company plc and MaltaPost plc which gained 1.72% and 1.69% to close at 0.59 and 1.2 respectively.

Renault – Nissan merger

Newly appointed Renault SA Chairman, Jean-Dominique Senard, plans to propose merging the French carmaker with alliance partner Nissan Motor Co. under a holding-company framework, giving each of the two car makers about a 50 percent stake in the new holding company and equal board representation.

The aim of the structure is to cement the alliance and secure cost savings amid a sector downturn. The proposal is one of several being discussed, and Renault is seeking a plan that Nissan would support, people familiar with the matter have said. “What we always said, and we still say the exact same thing, is that what we want is the alliance to be irreversible,” Renault Chief Financial Officer Clotilde Delbos said Friday on the company’s first quarter conference call when asked about its plans.

Uber unveils IPO terms

Uber Technologies Inc unveiled terms for its initial public offering on Friday, telling investors the ride-hailing company and insiders would seek to sell as much as $10.35 billion in stock at a valuation of up to $91.5 billion. In a regulatory filing, Uber set a target price range of $44-$50 per share for its IPO. The company will sell 180 million shares in the offering, with a further 27 million sold by existing investors.

In a regulatory filing, Uber reported a net loss attributable to the company for the first quarter of 2019 of around $1 billion and revenues of roughly $3 billion. The updated public filing comes as Uber gears up to begin its investor roadshow, in which management will spend the next 10 days pitching Uber to public markets investors.
 

Disclaimer: This article was issued by Peter Petrov, junior 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.