Daily Market Highlights (14.10.15)

  • Trading activity across the equity market remained low with only €60,400 worth of shares changed hands. The decline in trading activity in recent weeks could be due to the bonds issues conducted by Hili Properties plc and the Treasury. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index moved slightly higher to 1,136.132 points as the 10-year German Bund yield failed to recover from the decline registered yesterday afternoon to 0.56% amid continued uneasiness regarding disappointing near-term inflationary outlook in the Euro area. The 10-year German Bund yield eased further to the 0.54% level following a reduction to Germany’s growth forecast for this year to 1.7% following the economic slowdown in China and other emerging markets.
  • On Monday, the Treasury announced that it received a total of 3,624 applications for the two new Malta Government Stocks for a value exceeding €231 million (nominal). The Treasury exercised its over-allotment option and allotted €179.95 million (nominal) in the two fixed-rate stocks as follows: €52.5 million in the 2.0% MGS 2020 (V) FI and €127.4 million in the 2.3% MGS 2029 (II) FI. Subscriptions from retail investors at the fixed prices established by the Treasury amounted to €89.5 million (nominal) split up as follows: €1.3 million (nominal) in the 2.0% MGS 2020 (V) FI; and €88.2 million (nominal) in the 2.3% MGS 2029 (II) FI. All these applications were met in full. Moreover, the Treasury allotted €51.2 million to institutional investors in the 2.0% MGS 2020 (V) FI at prices ranging from a high of 107.07% to a cut-off price of 106.25%. In the 2.3% MGS 2029 (II) FI, the Treasury allotted €39.2 million at prices ranging from a high of 103.91% to a cut-off price of 102.61%.
  • Hili Properties plc is expected to announce its allocation policy with respect to its recent €37 million bond issue this afternoon.
  • Despite the weak activity, the MSE Share Index rebounded from yesterday’s decline as it ended this morning’s session up by 0.24% to 4,342.816 points.
  • International Hotel Investments plc started trading without the entitlement to the bonus share issue of 3 new shares for every 100 shares held. IHI have yet to announce when these new shares will be allotted to all shareholders. A single trade of 4,828 shares was executed at the €0.79 level, representing an increase of 3% over yesterday’s adjusted price.
  • MaltaPost plc advanced by 1.6% and closed the day at a new all-time high of €1.80 across insignificant volumes of 450 shares. The Company’s Board of Directors is scheduled to meet on Friday 4 December to consider and approve the financial statements for the year ended 30 September 2015.
  • The parent company of the postal operator, Lombard Bank Malta plc, also closed in positive territory as it advanced by a further 1.4% to a new multi-year high of €2.25 across 4,000 shares.
  • The two other positive performers of the day were Malta International Airport plc and Malita Investments plc. MIA edged 0.3% higher to the €3.89 level albeit on two trades totalling 210 shares. Last week, the Company published the traffic results for the month of September in which it revealed that it registered an 8.6% increase in passenger movements to a new record for the month of 502,823 passengers – representing the third consecutive month with more than 500,000 passenger movements, a first for MIA. During the first nine months of the year, MIA registered a 7% increase in passenger movements to 3.62 million compared to the Company’s revised forecast for 2015 of a 4.6% increase.
  • Malita Investments plc traded for the first time since the end of September as a single deal of 3,000 shares sent the equity of the property company up by 0.1% to the €0.881 level.
  • Meanwhile, two equities closed today’s trading session unchanged. Simonds Farsons Cisk plc maintained its record level of €6.00 on continued shallow volumes.
  • Similarly, Bank of Valletta plc also traded unchanged as 5,878 shares traded at the €2.364 level. The Bank is expected to publish its annual preliminary results by the end of October. Recently, the Bank also announced that it lodged an application with the Listing Authority for a subordinated debt issuance programme of a maximum of €150 million over the next twelve months. Further details will be issued in the Prospectus and Final Terms once approval is granted.
  • HSBC Bank Malta plc was the only negative performer of the day as it closed 1.1% lower at the €1.81 level across 15,681 shares.