Daily Market Highlights (23.07.2018)

  • The MSE Equity Price Index added 0.03% to reach an over two-week high of 4,402.158 points reflecting the gains in six equities which were mostly offset by the decline in HSBC. Meanwhile, trading volumes improved for the third consecutive day as a total of €0.26 million worth of shares changed hands. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index opened this week in negative territory as it slumped by 0.31% to a three-week low of 1,101.640 points. Bond yields in the euro area surged markedly after speculation emerged that the Bank of Japan intends to scale back its monetary stimulus at a faster pace than previously expected during the next monetary policy meeting to be held between 30 and 31 July. In fact, the 10-year benchmark German Bund yield rose to its highest level in five-weeks, just below the 0.4% mark. Meanwhile, on the political front, tensions between the US and Iran escalated after Iran first warned the US not to interfere with its internal politics. Subsequently, US President Donald Trump aggressively responded by threatening “consequences the likes of which few throughout history have ever suffered before”.
  • Bank of Valletta plc erased most of last Friday’s decline as the equity rebounded by 1.4% to regain the €1.75 level across 27,636. Last Friday, the bank announced that its appeal to the precautionary warrant of €363 million instituted against it on 27 March 2018 was rejected. As such, while the bank remains convinced of the strength of its defences, it also noted that it shall be keeping the litigation in question under constant review and will also keep supervisory authorities and the market updated with any material developments. BOV is soon expected to announce the date for the publication of the interim financial statements as at 30 June 2018.
  • GO plc added 0.6% to regain the €3.42 level albeit on light volumes totalling 1,450 shares. The company still needs to unveil the date for the publication of the six-month interim results up to 30 June.
  • Low trading activity also took place in five other equities. Mapfre Middlesea plc recaptured the €2.00 level on 2,055 shares. Last Friday, the insurance specialist reported a 16% increase in net profit to €3.77 million for the first six-months of the current financial year reflecting growth in both life and general insurance businesses.
  • In the property segment, Trident Estates plc, Malta Properties Company plc and Tigne’ Mall plc all posted gains. Trident and MPC rose by 3.8% and 2.1% to €1.35 and €0.49 respectively, whilst Tigne’ Mall added a more modest 1.1% to close at the €0.96 level.
  • In contrast, Malita Investments plc maintained the €0.87 level on trivial volumes.
  • PG plc (8,200 shares) and Simonds Farsons Cisk plc (9,160 shares) also traded unchanged at the €1.33 and €7.30 levels respectively.
  • Malta International Airport plc retained the €5.05 level after recovering from an intra-day low of €5.00 across a total of 7,847 shares. MIA is due to publish its interim results this Wednesday 25 July.
  • Meanwhile, HSBC Bank Malta plc was the only negative performing equity today as it slipped by 2.7% from its four-month high of €1.88 back to the €1.83 level across 39,082 shares. HSBC Malta is set to publish its interim results on 6 August.