Daily Market Highlights (04.10.2018)

  • The MSE Equity Price Index climbed 0.39% to a three-month high of 4,411.248 points, mostly driven by the jump in the share price of GO whilst FIMBank, MIA and HSBC also performed positively. On the other hand, BOV, Farsons and RS2 trended lower whilst a further three shares closed the day unchanged. Trading volumes improved noticeably to a four-day high of €0.65 million. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index erased all the gains registered in the previous two days as it shed 0.28% to a fresh four-year low of 1,083.547 points. Yields in the euro area jumped after the US Federal Reserve Chairman Jerome Powell hinted about more interest rate hikes in the coming months on the back of continued strong economic momentum as well as robust employment dynamics. Indeed, the yield on the 10-year US Treasury climbed above the 3.2% mark for this first time since early July 2011. Similarly, within the euro area, the benchmark 10-year German Bund yield rose to an over four-month high of just above 0.55%, also boosted by less aggressive budget deficit targets in Italy for the years ahead than previously feared by markets.
  • GO plc extended its recent rally as it added a further 3.8% to a fresh twelve-year high of €3.84 on heightened activity totalling 31,200 shares. Yesterday, GO announced that subject to shareholders’ approval, it will be seeking to dispose of up to 49% of its shareholding in BMIT Group through an initial public offering. In this respect, GO also added that through this sale, it will be seeking to raise up to €49 million. These proceeds are earmarked to deliver returns to shareholders.
  • Also among the large companies, Malta International Airport plc recaptured the €6.25 level (+0.8%) across 7,420 shares whilst three deals totalling 2,956 shares lifted the equity of HSBC Bank Malta plc 0.6% higher back to the €1.78 level.
  • FIMBank plc moved closer to its 2018 high of USD0.69 as it advanced by a further 1.5% to the USD0.66 level across 181,250 shares.
  • In contrast, Bank of Valletta plc extended its decline as the equity slipped by a further 0.4% to a new six-year low of €1.40 on strong volumes totalling 166,720 shares. On Tuesday, BOV announced that it filed court appeals related to the recent decisions taken by Arbiter for Financial Services in relation to fifty new cases involving the La Valette Multi Manager Property Fund.
  • RS2 Software plc shed 2.5% to the €1.15 level after partially recovering from an intra-day low of €1.12. A total of 69,709 shares changed hands.
  • Simonds Farsons Cisk plc retreated by a minimal 0.6% to the €7.75 level albeit on insignificant trading volumes.
  • Low trading activity also took place in the equities of Malita Investments plc and Main Street Complex plc, both of which traded unchanged at €0.87 and €0.655 respectively.
  • Plaza Centres plc retained the €1.00 level on a single deal of 50,000 shares.