The Malta Independent 22 October 2020, Thursday

Global markets end mixed

Thursday, 17 September 2020, 16:34 Last update: about 2 months ago

World markets end mixed and Snowflake Inc takes off on its debut trading day

US markets ended mostly lower on Wednesday after the Federal Reserve said it would likely hold rates near zero until at least 2023. The Dow Jones Industrial Average edged up 36.78 points, or 0.1 percent, to 28,032.38, while the S&P 500 lost 15.71 points, or 0.5 percent, to 3,385.49. The Nasdaq Composite retreated 139.85 points, or 1.3 percent, to end the session at 11,050.47.

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European stocks meanwhile ended mixed as strong results in the retail sector weighed out losses in exporters. The pan-European Stoxx 600 index gained 0.6 percent for the fourth session in a row while the UK’s FTSE 100 dropped 0.4% on the back of a stronger Pound.

Maltese markets closed lower with the MSE Equity Total Return Index falling 2.33 percent to 7,338.357 points. All equities traded in the red with FIMBank Plc posting the largest loss, down 18.92 percent at $0.30, followed by International Hotel Investments Plc which lost 16.3 percent to €0.452. Malita Investments Plc dropped 2.72 percent to €0.895.

Snowflake jumps on its debut

Shares of US cloud data firm, Snowflake Inc, soared on their debut trading day, climbing above $300 for a 150% gain. The stock opened late Wednesday afternoon at $245 a share even though the company priced its initial public offering Tuesday night at $120 a share — well above the expected range of $100 to $110. That price range was revised upward from the original expectation of $75 to $85 a share earlier this month. It now trades on the NYSE under the ticker symbol "SNOW."

Trading initially opened at The company sold 28 million shares and raised nearly $3.4 billion from the IPO. The impressive debut makes Snowflake the largest software IPO ever, easily topping the 2007 IPO of Dell-backed VMWare, which raised nearly $1 billion. At its closing price of just under $254, Snowflake is valued at $70 billion.

It’s a busy week for Wall Street as a number of Tech IPOs as set to take the centre stage in the week of September 14 including Unity Software, Amwell, Sumo Logic and JFrog Ltd.

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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