Daily Market Highlights (28.09.15)

  • The MSE Share Index kicked-off the week in negative territory and failed to hold on to last Friday’s multi-year high. The index eased 0.25% lower to 4,333.191 points as the declines in HSBC, MIA and Mapfre Middlesea offset the upturn in BOV.  Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index ended slightly above last Friday’s close of 1,127.809 points as the benchmark 10-year German Bund yield remained fairly stable this morning. However, bond prices firmed as yields dropped to the 0.60% level this afternoon as weak Chinese industrial data and continuing uncertainty in the European car market dragged European equities lower.
  • Last Friday, the Treasury announced the issue of two Malta Government Stocks for a total aggregate amount of €120 million subject to an over-allotment option of up to a further €60 million. The two new offerings are the 2.00% MGS 2020 (V) FI which last traded at 106.50% the 2.30% MGS 2029 (II) FI which last traded at 103%. The offer prices will be determined next Thursday 1 October 2015 in the afternoon and subscriptions open next Monday 5 October.
  • Meanwhile last Wednesday, Hili Properties plc published a Prospectus in connection with a new €37 million unsecured bond issue at a rate of 4.5% per annum.
  • HSBC Bank Malta plc was the worst performer of the day as the equity lost 1.0% to close at the €1.83 level across 13,940 shares.
  • On the other hand, Bank of Valletta plc closed marginally higher at the €2.35 level – the highest close since early May. Volumes were relatively healthy with 40,540 shares changing hands. Early this afternoon the Bank announced that its forthcoming Annual General Meeting is going to be held on Thursday 17 December 2015. BOV generally publishes its preliminary full-year results by the end of October. Recently BOV 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.
  • Trading volumes in Malta International Airport plc continued to be on the low side as the equity of the airport operator shed 0.8% to the €3.85 level across 3,970 shares.
  • A single deal of 2,420 shares in Mapfre Middlesea plc saw the equity retreat by 0.4% to the €2.271 level. Recently the insurance company announced that, subject to all regulatory approvals, it reached agreements with Montaldo Insurance Agency Ltd and Untours Insurance Agency Ltd for them to act as agents of Mapfre Middlesea.
  • Meanwhile, all the other four active equities traded unchanged. International Hotel Investments plc closed the session at the €0.80 level on 33,258 shares. Last week IHI announced that, subject to obtaining the necessary approvals, it shall be distributing a bonus share issue of 3 new shares for every 100 shares held to those shareholders as at close of trading on 13 October.
  • Medserv plc managed to hold to its all-time high of €3.10 across insignificant volumes of 1,120 shares. Medserv will be holding an Extraordinary General Meeting on 12 October.
  • RS2 Software plc and Lombard Bank Malta plc also closed unchanged at €2.51 and €2.10 respectively.