Persisting challenges arising from 2020 are still influencing global markets in 2021, further reshaping the investment scenario into an array of unpredictable possibilities, Bank of Valletta has said following its latest webinar.
“Yet the stock market is still indicating some potential optimistic points which could eventually factor a stronger economic recovery from the COVID-19 pandemic.”
Investment specialists from BOV Asset Management discussed the journey “From Hope to Optimism” during the webinar, in which the road back to a stronger economy and a clearer investment environment was the main focus.
Introducing the discussion, Investment Analyst Loredana Micallef explained that noticeable positives are already paving the way for a regenerated economy for current investors.
“Around a year ago COVID-19 was declared as a pandemic, which is still posing high instability among those seeking to sustain their investments” said Ms Micallef.
She then stated that while there’s still a long way to go, the currently ongoing vaccine administration is already increasing optimism and impacting the value of stock markets.
Portfolio Manager Adrian Borg specifically spoke about the current bond scenario, explaining it as one that will continuously experience shifts and changes.
“Since the downfall of 2008, central banks have been deploying intensive measures to mitigate the interest rates on bonds and sustain the economy,” stated Mr Borg.
He remarked that sector selection is an important tool for current investors, where the optimism of recovery should be taken into considerable attention. “The current investor needs to be aware that the return from some bonds might not necessarily come in the form of interest, but in terms of capital appreciation.”
According to Glen Mifsud, Portfolio Manager at BOV Asset Management, the settlement of Joe Biden as the US President is also increasing confidence among investors.
“Several projects re-initiated by Joe Biden are aimed at developing sustainability and renewable energy, which set up a loftier vision for those seeking to invest wisely,” claimed Mr Mifsud.
The recently elected US President had already ensured that the UN will re-join the Paris Climate Agreement, a movement that has already started to provide hope towards optimism.
Investment Analyst Stephen Sammut spoke about the local market outlook. “Mainly due to a lower rate of tourism, Malta’s GDP suffered a rapid decline of 8.2 per cent, the second highest decline in Europe,” explained Mr Sammut.
However, he pointed out that intensive strategies from both the health and finance sectors will drive the Maltese equity market to catch up within Europe. “Besides vaccinations, extension of moratoria from local banks is another tactic that is sustaining the local business community and accelerating the journey towards the desired normality.”
BOV Asset Management Limited is licensed to conduct investment services in Malta by the Malta Financial Services Authority. Issued by BOV Asset Management Limited, registered address 58, Triq San Zakkarija, Il-Belt Valletta, VLT 1130, Malta. Tel: 2122 7311, Fax: 2275 5661, E-mail: [email protected], Website: www.bovassetmanagement.com.
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