Daily Market Highlights (16.02.16)

  • The MSE Share Index moved back into positive territory today as it edged 0.3% higher to 4,476.846 points mainly due to the increases in the share prices of HSBC, IHI and RS2 which largely offset the further decline in BOV. Download a copy of today’s Equity Market Summary.
  • In fact, the share price of Bank of Valletta plc registered its fourth consecutive daily decline with a loss of a further 0.6% back to the €2.20 across 25 deals totalling 62,427 shares. The share price is at its lowest level in 3 weeks.
  • GO plc also eased 0.2% lower back to the €3.26 level albeit on shallow volumes of 1,850 shares. Last Thursday, GO revealed improved results for its 2015 financial year as operating profits increased by 27.9% to €27.8 million whilst profits before tax (after accounting for certain one-off items) amounted to €34.2 million. The Board of Directors will be recommending the payment of a final net dividend of €0.10 per share (2014: €0.07 per share) to all shareholders as at the close of trading on 7 April 2016. This dividend will be paid on 13 May subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 11 May. Moreover, last Friday the Company announced that it received a number of non-binding bids from parties interested in acquiring the Company’s entire issued share capital.
  • In the property segment, the share prices of Malita Investments plc and Malta Properties Company plc also trended in negative territory albeit on shallow volumes.
  • On the other hand, HSBC Bank Malta plc partially recovered from the declines during the past three sessions as its share price edged 1.3% higher to regain the €1.62 level across five deals totalling 22,389 shares.
  • Likewise, the equity of International Hotel Investments plc moved 0.1% higher to €0.72 across ten deals totalling 36,550 shares. This morning, IHI updated the market via a company announcement highlighting the new projects being pursued in connection with the development and management of new luxury Corinthia hotels in Dubai, Rome, Brussels and Abuja (Nigeria), where in some cases negotiations have advanced significantly in recent months and agreements are expected to be signed in the first half of 2016. Furthermore, the residential penthouse in London (adjoining the Corinthia Hotel London) has been leased for a period of two years.
  • The share price of RS2 Software plc briefly touched a new all-time high of €3.40 before easing back to end this morning’s session at the €3.38 level which still represents a 0.5% increase over the previous closing price. A total of 16,090 shares changed hands across nine deals.
  • FIMBank plc also performed positively as the equity jumped 4.9% higher to recapture the USD0.64 level on high volumes 125,654 shares. The trade finance specialist is expected to publish its 2015 financial statements on 15 March.
  • The only other positive performing equity listed on the Official List was Simonds Farsons Cisk plc with a 2.5% increase to €6.25 albeit on a single trade of just 200 shares.
  • Meanwhile, Malta International Airport plc maintained its all-time high of €4.72 across 12,275 shares. MIA is scheduled to reveal its 2015 financial results next Wednesday 24 February.
  • Similarly, Medserv plc, Mapfre Middlesea plc and Tigne Mall plc ended this morning’s session unchanged.
  • On the bond market, the RF MGS Index extended yesterday’s gains by a further small upturn to 1,135.810 (+0.05%) as financial markets appeared to have stabilised following gains in the price of oil and a surge in the demand for loans in China. In parallel, the yield of the 10-year benchmark German Bund remained steady at the 0.28% level despite a dovish stance of the European Central Bank (ECB) President Mr Mario Draghi during his testimony to the European Parliament. On the economic front, German economic sentiment slumped to its lowest level since October 2014 in February, mirroring the recent heightened financial market volatility and a deteriorating global economic outlook.
  • Last Friday, the Treasury announced the issue of two new Malta Government Stocks for a total aggregate amount of €200 million. The new issues are the 1.50% MGS 2022 (IV) and the 2.50% MGS 2036 (I). The fixed offer prices will be determined on Thursday afternoon while subscriptions for the General Public will open on Monday 22 February and close on Wednesday 24 February (or earlier in the case of oversubscription).