Daily Market Highlights (02.08.2016)

  • The MSE Share Index registered its worst daily performance in more than two weeks as it dropped by 0.40% to 4,441.652 points. Today’s decline reflected the losses in the share prices of IHI and MIA which outweighed the gains in two other heavyweights – BOV and HSBC. Meanwhile, three other shares closed unchanged. Total trading activity in equities climbed to a two-week high of €0.25 million but still remains below the daily average of €0.35 million this year. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index erased some of yesterday’s gains as it slid by 0.09% to 1,155.786 points, reflecting a minor rebound in euro zone sovereign bond yields. Indeed, the 10-year benchmark German Bund advanced to a high of -0.022% today from a low of -0.116% yesterday. Similarly, the corresponding 10-year yields of both Italy and Spain gained ground today touching an intra-day high of 1.232% and 1.092% respectively from the lows of 1.185% and 1.031% seen yesterday. On the economic front, euro zone producer price inflation (which measures the change in the price of goods sold by manufacturers) rose by more-than-expected to a seasonally adjusted 0.7% in July from 0.6% in the preceding month. Analysts had expected a rise of only 0.4%.
  • The equity of International Hotel Investments plc traded for the first time in the last seven trading sessions and slumped by 7.1% to the €0.604 level on thin volumes totalling 4,666 shares. The new IHI 4.0% secured bonds 2026 are expected to be admitted to listing on Friday 5 August and trading is expected to commence on Monday 8 August.
  • Malta International Airport plc retreated by 1.2% to the €4.15 level across 6,555 shares. MIA will reveal its interim results on 17 August. Recently the airport operator upgraded its 2016 year-end traffic results to +7.5% from the original forecast of a 2.4% growth in passenger volumes.
  • In contrast, the two largest retail banks, Bank of Valletta plc and HSBC Bank Malta plc, moved into positive territory today. BOV advanced by 1.4% to the €2.23 level across 29,079 shares and HSBC recaptured the €1.60 level (+0.6%) on encouraging volumes totalling 53,073 shares. HSBC will reveal its interim results tomorrow. The Board of Directors will also consider the declaration of an interim dividend.
  • Also amongst the large companies, GO plc maintained its sixteen-month low of €2.80 across 4,000 shares. Last Thursday, GO announced that it was informed by TT ML Limited (a wholly-owned subsidiary of Tunisie Télécom) that it received acceptances representing circa 65.4% of the entire issued share capital of GO. Moreover, on Friday GO announced that, within the framework of its sales process to TT ML Limited, Forgendo Limited (the joint venture company between GO and Emirates International Telecommunications (Malta) Limited [EITML]) transferred its entire shareholding in Forthnet S.A. to GO and EITML for a nil consideration. This share transfer was part of the conditions for the successful completion of TT ML’s majority take-over of GO.
  • Similarly, FIMBank plc (54,000 shares) and Malta Properties Company plc (14,000 shares) also closed flat today at USD1.018 and €0.507 respectively. FIMBank is expected to reveal its performance for the six-month period ended 30 June 2016 on Tuesday 9 August.
  • The Treasury of Malta announced that the 2 new Malta Government Stock issues closed today at 11.30am due to oversubscription. As such, the auction which was scheduled to be held on Monday 8 August 2016 is being cancelled as no balance is available for allocation under the tender system. The allocation policy will be announced in due course.

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