Daily Market Highlights

Oct 18, 2018

  • The MSE Equity Price Index remained at just above 4,539 points as the gains registered in BOV and FIMBank were offset by the declines in five other shares including GO, MIA and RS2. Meanwhile, trading volumes dropped markedly from the very high levels recorded in recent days to just under €0.3 million. Download a copy of today’s Equity Market Summary.
  • Malta Government Stock prices remained volatile. Following yesterday’s surge of 0.37%, the RF MGS Index lost 0.15% today to 1,081.368 points. The drop reflected a sharp increase in the yields of peripheral countries amid uncertainties over the cohesiveness of the Italian government over its proposed expansionary budgetary measures. Meanwhile, higher bond yields were also supported by indications that the US Federal Reserve is set to continue increasing interest rates in the coming months. These emerged from the publication of the minutes of the most recent monetary policy meeting wherein “a few participants expected that policy would need to become modestly restrictive for a time” whilst “a number judged that it would be necessary to temporarily raise the federal funds rate above their assessments of its longer-run level in order to reduce the risk of a sustained overshooting of the Committee’s 2% inflation objective or the risk posed by significant financial imbalances.” On the other hand, the minutes noted that only “a couple of participants indicated that they would not favour adopting a restrictive policy stance in the absence of clear signs of an overheating economy and rising inflation.”
  • Following yesterday’s 2.2% decline, the equity of Bank of Valletta plc rebounded by 1.5% to regain the €1.37 level across 43,382 shares. The European Banking Authority is scheduled to publish the results of its various stress tests on major European banks including BOV by 2 November 2018.
  • Two deals totalling 25,500 shares lifted the equity of FIMBank plc 1.3% higher to the USD0.80 level.
  • In contrast, GO plc moved back to the €4.00 level (-2%) albeit on just 1,200 shares. The company will be convening an extraordinary general meeting (“EGM”) on Monday 3 December 2018 in relation to the proposed sale of up to 49% of its shareholding in BMIT Technologies plc (“BMIT”) through an Initial Public Offering. In this respect, shareholders of GO as at close of trading on 31 October 2018 will be receiving notice of the EGM as well as a circular containing further details on the proposed partial sale of BMIT.
  • Also among the large caps, Malta International Airport plc eased by 0.8% to the €6.20 level after momentarily trading at a new record high of €6.40 (+2.4%). A total of 15,860 shares changed hands.
  • RS2 Software plc lost 0.9% to the €1.16 level albeit on trivial volumes.
  • Low trading activity also took place in the equity of Malita Investments plc which retracted by 0.6% to €0.90.
  • Within the same segment, Plaza Centres plc shed 1.9% back to the €1.01 level across 50,000 shares.
  • In contrast, the equities of three other property companies closed the day flat. MIDI plc held on to the €0.72 level across 29,000 shares.
  • Similarly, Malta Properties Company plc (33,800 shares) and Trident Estates plc (5,000 shares) stayed at €0.58 and €1.35 respectively.
  • A single deal of just 3,130 shares left the equity of International Hotel Investments plc at the €0.63 level whilst Lombard Bank Malta plc traded unchanged at the €2.40 level across 4,977 shares.