Daily Market Highlights (28.08.2017)

  • Last Friday’s rebound of 0.22% in the MSE Share Index was short-lived as the local equity benchmark opened this week in negative territory with a 0.56% drop to an over two-week low of 4,644.483 points. Out of the twelve traded equities during today’s session, seven drifted lower, three finished flat and another two shares registered gains. Trading volumes amounted to €0.27 million the majority of which took place in BOV. Download a copy of today’s Equity Market Summary.
  • Following last Friday’s sharpest daily decline in over a week of -0.15%, the RF MGS Index rebounded by a minimal 0.04% to 1,128.919 points. Euro zone bond yields were little changed today after last Friday ECB President Mario Draghi was reported as saying that more time is needed for inflation to pick-up and reach the central bank’s target of 2% despite growing signs of economic recovery within the single currency area. On the economic front, surveys gauging the level of confidence among Italian consumers and businesses rose markedly whilst private sector loans in the entire euro zone area maintained a growth rate of +2.6% year-on-year for the third consecutive month in August.
  • Bank of Valletta plc posted a three-day negative streak as it eased by a further 0.9% back to the €2.10 level on healthy volumes totalling 71,996 shares.
  • Among the large companies by market capitalisation, IHI, GO and MIA also trended lower. The worst performing out of the three shares was International Hotel Investments plc with a decline of 2.4% to the €0.60 level albeit on trivial volumes. Last Thursday, IHI reported a pre-tax loss of €2.3 million for the first half of the current financial year ending 31 December 2017. IHI however noted that the general business outlook for its hotels and catering business remains positive and that its hotel management arm remains very active at growing the business as it expects to conclude other hotel management agreements this year. Meanwhile, this morning, IHI and Island Hotels Group Holdings plc (IHG) announced that their respective Boards have agreed to merge the business of IHG with that of IHI.
  • GO plc shed 1.4% back to the €3.55 level across 2,600 shares. Similarly, Malta International Airport plc ended the session 0.2% lower at the €4.16 level after failing to hold on to an intra-day high of €4.209 (+0.9%) on shallow volumes of 4,800 shares.
  • In the property segment, Tigne’ Mall plc slumped 6.3% to the €0.915 level on a single deal of 44,000 shares. The Company is due to pay its recently declared net interim dividend of €0.0128 per share next Thursday 31 August.
  • Malta Properties Company plc and Plaza Centres plc also recorded notable declines today. MPC slid 5.8% to the €0.502 level across 22,823 shares and Plaza fell 3.5% to the €1.04 level on three deals totalling 20,000 shares.
  • On the other hand, MIDI plc and Malita Investments plc maintained the €0.31 and €0.75 levels respectively on light volumes. MIDI is due to publish its interim financial statements following a Board of Directors meeting being held today.
  • RS2 Software plc also finished the day unchanged at the €1.78 level on just 2,000 shares. Last Wednesday, RS2 revealed its interim financial results showing a pre-tax profit of €2.51 million which is 38% higher than the corresponding figure for the first six months of 2016. The company also reiterated its strategy of expanding internationally.
  • Meanwhile, PG plc recaptured its all-time high of €1.40 on a single deal of just 1,045 shares and Simonds Farsons Cisk plc reached a new record high of €8.00 across 715 shares.
  • This morning, GlobalCapital plc announced that its Board of Directors is scheduled to meet on Wednesday 30 August to consider and approve the Group’s interim financial statements covering the six months ended 30 June 2017.