The financial world experiences ups and downs every day. In order to give readers an insight into what is happening in the stock markets, “Delfi Bizness” offers a summary of the events of the week (11.12.-15.12).
Investments in toy manufacturers
One of the tips that experts give to new investors is to invest in the shares of companies whose products they themselves use, so they can assess their popularity, quality and demand. Thus, investors who are also parents of children should look at investing in publicly traded toy manufacturers. However, the results are not encouraging and you may be better off investing in video games.
Find out more.
Concerns about “Indexo”
The Latvian investment management company “Indexo”, which has been on the stock exchange for more than a year, this week announced an application for additional shares. The price of one is 12 euros, which is lower than the 2022 IPO price, but higher than the current price on the stock exchange. The experts interviewed by “Delfi Bizness” refer to general nervousness in the markets and say that investors are likely to feel doubts about the company’s plans. “Indexo” emphasizes that the mood of investors cannot be influenced, therefore it focuses on achieving its goals.
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Companies do not invest
In 2023, fixed yield financial products – savings accounts, term deposits, savings bonds – have strengthened their role in the financial management of Latvian citizens. Although these same instruments are also available for local business, most of Latvia’s largest companies do not take advantage of opportunities to earn more – short-term fixed income financial instruments are regularly used by only 9% of the 500 largest local companies. Could this situation change soon, and what is the price of missed opportunities, says the chairman of the board of “CBL Asset Management”, Kārlis Purgailis.
Find out more.
Short news from the markets
- Rates are not raised. After raising interest rates for the past two years to curb inflation, the Bank of England and the ECB followed the US Federal Reserve’s (FRS) lead on Thursday by leaving interest rates unchanged for the second meeting in a row.
- Records. Investors already consider not raising rates as a victory and joy. All three major US stock indexes rose on Thursday. The Dow Jones Industrial Average hit a new all-time high of 37,248.35, the Standard & Poor’s 500 rose 0.3% to 4,719.55, and the Nasdaq Composite rose 0.2%. to 14,761.56 points.
- Pause. The world’s largest crypto exchange believes that the rise in value of “Bitcoin” and other cryptocurrencies could experience a slight pause, although investors in general are still hopeful about the potential cryptocurrency ETFs, which will then inject, as some hope, billions into the market.
- The fall. Over the course of five days, the aforementioned “Bitcoin” experienced a 4.7% drop in value, with the price sticking to the 42,000 per coin mark.
- The strength of the dollar. Financial world giants Fidelity International, JPMorgan Chase & Co. and HSBC Holdings, according to Bloomberg, predict that next year the US economy will outpace forecasts and, as a result, the value of the dollar against other currencies will grow.
- Chalk index. The “Purchasing Managers’ Index” (PMI), which characterizes the activity of private sector production and services in the Eurozone, unexpectedly dropped to 47 points in December this year, compared to 47.6 points in November, the LETA agency cites the market research company “S&P Global” and “Hamburg Commercial Bank”. data. This shows that the rise in interest rates this year has had an impact on various sectors.
- The price of gold against the dollar increased by 0.3% this week, while against the euro it fell by 1.13%.
Price fluctuations
Latvian fintech success story ‘Mintos’ outlines development plans
Latvian “fintech” success story “Mintos”, which, according to some sources, makes up half of the entire P2P market in Europe, wants to become not only a platform through which loans flow to non-bank lenders, but one stop for creating a wide and safe portfolio. The head of the company and one of the founders, Mārtiņš Šulte, talked about the new opportunities to buy bonds and invest in exchange-traded funds or ETFs in the program “Nákotnes kapitāls”.
“Future capital” portfolios
In 2021, the host of the program “Nákotnes kapitāls” Konstantin Kuzikovs started investing 50 euros a week. He invests in stocks included in the “S&P 500” index, that is, in large, billion-dollar US companies. This year, Kuzikovs also started investing in Latvian government savings bonds. On the other hand, his colleague Raivis Vilūns invests in cryptocurrencies, companies traded on the Baltic Exchange and crowdfunding platforms. This year, “robot” – SEB’s automated tool that invests money in exchange-traded electronic funds (ETFs) – also joined investors. This is how all three portfolios fared last week:
- Konstantin Kuzikov: +3.56%
- Raivis Viluns: +6.68%
- “SEB Roboinvestors”: +7,26%
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2023-12-15 22:04:13
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