Daily Market Highlights (16.10.15)

  • The MSE Share Index closed virtually unchanged at 4,328.164 points as the upturn in the share price of Lombard Bank was offset by a decline in MaltaPost while all other active equities closed the day unchanged. Volumes were again on the low side with only €150,800 worth of shares changing hands. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index retreated slightly to 1,136.025 points as the 10-year German Bund yield marginally increased to the 0.56% level this morning. Nonetheless, this upturn was short-lived as the benchmark Bund eased to below the 0.54% level later on after data was published confirming that prices dropped by 0.1% in September across the eurozone. This data reinforced comments made yesterday by Austria’s central bank chief that the European Central Bank needs to introduce additional monetary stimulus measures in order to avert deflationary pressures.
  • Following the recent Malta Government Stock issues, the two institutional tranches were listed yesterday but failed to trade today. The indicative bid prices of the Central Bank of Malta for both issues were higher than the cut-off prices and the weighted-average accepted bids in this week’s auction. In fact, the bid price for the 2.00% MGS 2020 issue stood at 106.70% (compared to a cut-off price of 106.25%) whilst that for the 2.30% MGS 2029 stood at 104.01% (compared to a cut-off price of 102.61%). The Treasury and the Malta Stock Exchange have not yet indicated when the retail tranches will be listed.
  • On Wednesday, Hili Properties plc announced its allocation policy with respect to its recent €37 million 4.5% 2025 unsecured bond offering. The issue was heavily oversubscribed and the company received a total amount of €227.8 million. Hili Ventures Group Bondholders will be allotted a minimum of €4,000 and 1.153% of the remaining balance rounded up to the nearest €100. Moreover, applications from the General Public will be allotted a minimum of €2,000 with an additional 1.964% of the remaining balance rounded up to the nearest €100. Refunds will take place by not later than 21 October and trading is expected to commence next Thursday 22 October.
  • Lombard Bank Malta plc reversed most of yesterday’s decline as the equity moved up by 0.9% to the €2.24 level across 14,000 shares.
  • On the other hand, the Bank’s postal subsidiary, MaltaPost plc, eased 0.6% from its all-time high of €1.80 and closed at the €1.79 level across 4,418 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.
  • Meanwhile, all other traded equities closed unchanged. Bank of Valletta plc maintained the €2.34 level across higher volumes of 32,499 shares. 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.
  • Also in the banking sector, 9,885 shares of HSBC Bank Malta plc changed hands at the €1.80 level.
  • Simonds Farsons Cisk plc and Malita Investments plc also closed unchanged at the €6.00 and €0.881 levels respectively on low volumes.