Bond market in focus

Trading activity waned across the local equity market as investors shifted their focus back to the bond market. The recently listed 5.25% MGS 2030 (I) FIB slipped 40 basis points back to the 103.1% level on volumes of €278,400 (nominal). This 20-year bond had managed to hold onto the 103.50% for most of the day.

Increased volumes were also evident across some of the active corporate bonds. The Sterling tranche of the 7% MIDI plc 2018 bonds gained 100 basis points to 106% on activity of GBP72,600 (nominal). Meanwhile, following the bond buy-backs from a number of companies in recent months, Hotel San Antonio plc wrote to all bondholders offering to repurchase their 7.5% bonds at 102%, representing a 2% premium over the maturity value. The offer will available until Wednesday 15 December.

On the local equity market, the MSE Share Index edged marginally lower to close at 3,465.793 points mainly due to Bank of Valletta plc’s minimal decline to €3.699. Volumes in BOV however declined to just 1,741 shares. Middlesea Insurance plc also edged 0.3% lower to drop back to the €1.047 level on a single trade of 3,000 shares.

The other two active equities, namely HSBC Bank Malta plc and RS2 Software plc, closed unchanged at €2.89 and €0.50 respectively.

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