Daily Market Highlights (02.09.16)

  • The MSE Share Index maintained its positive trend with the fourth consecutive daily gain. The Index edged a further 0.03% higher to 4,462.634 points following an increase in the share price of HSBC – the only positive performing equity today. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index trended lower for the second consecutive session with a decline of a further 0.1% to an almost 2-week low of 1,166.583 points as the benchmark 10-year yields in Spain and Italy largely retained yesterday’s sharp uplift in view of a number of uncertainties and concerns. Spain is facing the prospect of a third election as parties remain in deadlock ahead of a second vote of confidence to be held later today. Furthermore, the National Statistics office of Italy today confirmed that in the second quarter of 2016, the country’s economy was stagnant as export growth was offset by falling domestic demand. Furthermore, investors are also nervous ahead of an update on Portugal’s credit rating by Moody’s which may include some negative comments on the government’s fiscal plans.
  • HSBC Bank Malta plc edged 1.3% higher to regain the €1.60 level across six deals totalling 42,841 shares. The Bank is scheduled to pay the recently declared gross interim dividend of €0.071 per share (net: €0.0462) on 9 September.
  • On the other hand, GO plc released some of this week’s earlier gains with a 0.6% drop back to the €3.10 level on a single trade of 1,500 shares.
  • Similarly, RS2 Software plc slid 1.1% lower back to the €1.78 level for the first time since early January 2016. A total of 5,550 shares changed hands today.
  • Medserv plc also trended in negative territory as it slipped by 0.7% back to the €1.50 level across a total of 14,482 shares. Last Friday, the Medserv Group published its 2016 interim results revealing a substantial drop in pre-tax profits to €0.28 million on the back of a slowdown in Cyprus and a delay in works in Portugal amongst other factors.
  • Grand Harbour Marina plc dropped 2.3% to a 4-year low of €0.87 across a single trade of 4,192 shares. Earlier this week, the Company published its 2016 interim results revealing a pre-tax profit of €0.35 million compared to €0.08 million in the first six months of 2015. The higher profitability is largely due to the operational improvements achieved at both marinas (Malta & Turkey). However, the Group did not register any berth sales and does not envisage any sales in the near future. The Directors declared a net interim dividend of €0.024 per share to all shareholders as at the close of trading next Monday 5 September.
  • Meanwhile, Bank of Valletta plc maintained the €2.25 level across nine deals totalling 23,625 shares.
  • Likewise, Malta International Airport plc traded unchanged at the €4.24 level across a single trade of 12,737 shares.
  • Malita Investments plc also closed the day unchanged as a further 40,000 shares traded at the €0.87 level.