Daily Market Highlights (20.12.2018)

  • The MSE Equity Price Index extended the gains registered this week with a further 0.2% increase to reach a 2-week high of 4,467.897 points. Today’s uplift was due to increases in BOV, HSBC RS2, MIDI and Malta Properties. On the other hand, GO plc and Medserv plc drifted lower whilst a further five equities ended the session unchanged. Healthy trading activity was sustained as €0.61 million worth of shares changed hands today. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index extended its positive trend as it edged a further 0.14% higher (its third consecutive uplift) to reach yet another 4-month high of 1,095.281 points reflecting declines in the 1-year yields of both Germany and Italy. Germany’s 10-year yield, a benchmark in financial markets, dropped to a new 7-month low of 0.203% following yesterday’s dovish indications by the US Federal Reserve for 2019 which intensified concerns over weak global growth. Meanwhile, Italy’s 10-year yield maintained its downward trend to reach a new 3-month low of 2.723% after the coalition government reached a deal on its budget measures for 2019 earlier this week. Furthermore, market concerns were also eased by comments this morning from Deputy Prime Minister Luigi Di Maio indicating that the coalition government is expected to continue to govern without any reshuffle and the government will be attempting to introduce necessary constitutional reforms next year to reduce expenditure.
  • Bank of Valletta plc edged 0.8% higher to recapture the €1.33 level across five deals totalling 22,051 shares.
  • Similarly, new bids lifted the share price of HSBC Bank Malta plc 1.1% higher to the €1.85 level on low volumes of 2,266 shares.
  • RS2 Software plc maintained its positive trend albeit with a slower 0.7% increase to yet another 8-month high of €1.41 across seven deals totalling 33,430 shares. Earlier this week, the company published an Interim Directors’ Statement highlighting the strong business pipeline across all its geographical markets in both its business lines (namely licensing and managed services). Apart from contracted business which is currently being implemented, the announcement refers to potential prospects in Northern Europe for both managed services and licensing, a solid pipeline including Tier-1 financial institutions in North America and potential licence sales as well as managed services contracts with prospective Pan-Asian clients.
  • MIDI plc edged 3.1% higher to €0.67 on a single trade of 3,000 shares. This afternoon, the Planning Authority deferred its decision on the proposed amendments to the Manoel Island master plan.
  • Also in the property segment, Malta Properties Company plc jumped 6.8% higher to €0.55 across two deals totalling 1,728 shares.
  • On the other hand, the share price of GO plc slipped 2.6% lower to €3.80 on strong volumes of 130,100 shares.
  • Likewise, new sale orders forced the share price of Medserv plc 3.4% lower back to the €1.15 level albeit on a single deal of 6,000 shares.
  • A further five equities, including International Hotel Investments plc and Malta International Airport plc, traded unchanged today across insignificant volumes.