Daily Market Highlights (01.07.2016)

  • The MSE Share Index trended higher for the third consecutive trading session today to reach the highest level in two months of 4,578.915 points (+0.38%). The local equity index registered its best weekly performance this year with a rise of 2.2%. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index registered its fourth consecutive gain as it advanced by a further 0.32% today to a fifteen-month high of 1,160.097 points. Comments made by the Governor of the Bank of England warning that it might have to cut rates or embark on more quantitative easing following the UK’s decision to leave EU unleashed a surge in demand for sovereign paper. In the euro zone, the 10-year benchmark German Bund yield touched an intra-week low of -0.146% today. In parallel, the 10-year yields of the two largest peripheral countries with similar credit ratings to Malta’s – Italy and Spain –also decline sharply. A number of the longer-dated Malta Government Stocks reached fresh record prices today.
  • The best performing equity today was RS2 Software plc. The share price gained 2.9% from the adjusted pre-share split price of €2.10 to a two-month high of €2.16 (equivalent to an unadjusted pre-share split price of €3.60). A total of 31,865 shares changed hands today.
  • Bank of Valletta plc recaptured the €2.25 level (+0.2%) on volumes totalling 12,300 shares.
  • Also in the banking sector, both FIMBank plc and HSBC Bank Malta plc registered gains today. FIMBank moved 1.1% higher to a new six-year high of USD0.93 on 32,240 shares whilst a single deal of just 452 shares pushed the equity of HSBC back to the €1.61 level (+0.9%). HSBC’s 2016 interim results will be published on 3 August.
  • Medserv plc moved slightly higher to €1.792 across 4,740 shares.
  • In contrast, two deals totalling 31,775 shares pushed the equity of Lombard Bank Malta plc 2.7% lower to the €2.14 level. Lombard will reveal its interim results on 25 August.
  • Malta Properties Company plc eased 0.9% to close the week at the €0.53 level on light volumes.
  • In the meantime, three of the large companies traded unchanged today. GO plc maintained the €2.86 level on 4,444 shares. Eligible GO shareholders have until 22 July to respond to Tunisie Télécom’s voluntary public offer to acquire shares of GO at €2.87 per share.
  • International Hotel Investments plc traded again at the €0.70 level on volumes of only 1,000 shares. This morning, IHI published a Prospectus in connection with the issuance of €55 million 4.0% secured bonds maturing in 2026. This bond is mainly earmarked to refinance bank borrowings on the Group’s property in Budapest (Hungary) which will subsequently be secured in favour of bondholders. IHI is reserving an amount of €30 million for its shareholders (preferred applicants) as at the close of trading on 27 June whilst the balance of €25 million is available for subscription by the general public.
  • Malta International Airport plc held on to the €4.25 level also on low volumes. The company should shortly be announcing its June traffic results.
  • MIDI plc also published a Prospectus in connection with the issuance of €50 million 4.0% secured bonds maturing in 2026. This bond is primarily being issued to finance the redemption of the €40.8 million 7.0% bonds which will be redeemed on 15 December 2016. The new bonds are therefore mainly reserved for existing holders of the 7.0% bonds denominated both in Euro and Sterling to whom preference will be given over new investors. Bondholders of the 7% GBP bonds can transfer their holding into the new 4% EUR bonds at a rate of GBP0.834 per EUR1.

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