MSE Share Index registers third consecutive decline

The MSE Share Index trended lower for the third consecutive session with a further 0.4% decline to 3,309.482 points with equity market volumes dwindling to €84,159. Today’s decline was mainly due to the 1% drop in the share price of HSBC Bank Malta plc to €1.95 across three deals totalling 5,031 shares. Similarly, the equity of Malta International Airport plc failed to hold on to its all-time high of €2.40 as it slipped 2.1% lower back to the €2.35 level on shallow volumes of 2,360 shares.

During this morning’s session on the Borza, the share price of 6pm Holdings plc shed 2.8% lower to a 7-month low of GBP0.70 level across 11,150 shares. 6pm is expected to publish its Interim Directors Statement in the coming days.

On the other hand, Middlesea Insurance plc edged minimally higher to €0.991 across four deals totalling 10,000 shares. Similarly, the share price of Simonds Farsons Cisk plc also moved marginally higher to €3.011 on an insignificant deal of 112 shares.

Meanwhile, the share price of Bank of Valletta plc rebounded from an intra-day low of €2.23 to end this morning’s session unchanged at the €2.24 level across eleven deals totalling 21,553 shares.

The only other active equity was Malita Investments plc with a single trade of 900 shares executed at the equity’s all-time high of €0.60 representing no change from the previous closing price.

Shortly after the close of this morning’s session, FIMBank plc published its interim Directors’ Statement updating the market since its half year ended on 30 June. The trade finance specialist explained that the improved performance of the main entities of the Group were offset by non-quantified impairments resulting in a materially challenging impairment situation. Furthermore, the outlook for the performance of the Group remains difficult and negative, and that the backing of the major shareholders – the Kuwaiti Burgan Bank SAK and the Bahraini United Gulf Bank BSC – is encouraging to the Group for it to face these challenging situations and absorb their negative impact.

On the bond market, the Rizzo Farrugia MGS Index moved a further 0.1% higher to recapture 1,092.347 points in response to the decline in Eurozone benchmark yields to a 1-month low of 0.767% as Europe’s woes were back in focus after Japan’s economy slipped into recession in spite of the numerous and significant measures undertaken in recent months by the Bank of Japan. Markets are still awaiting more action from the European Central Bank whilst more pressure is being made on the region’s governments to enact more fiscal stimulus to complement monetary policy in kick-starting the region’s economy.