Daily Market Highlights (02.11.2017)

  • The MSE Equity Price Index extended yesterday’s decline of 1.1% by a further 0.39% to an over ten-month low of 4,583.314 points. Today’s drop in the Index mainly reflects the fall in the share prices of RS2 (-3.1%) and BOV (-2.1%) which outweighed the gains in HSBC (+1.35) and MPC (+0.6%). Download a copy of today’s Equity Market Summary.
  • This morning, Virtu Finance plc published a Prospectus for the issuance of €25 million 3.75% unsecured bonds maturing in 2027. The net proceeds from the bond issue will be used by the Company for part-financing the €75 million acquisition of a new high-speed vessel which, upon commencement of operation in mid-2019, will complement the Jean de la Valette along the Malta-Sicily route.
  • Most of today’s trading activity took place in the equity of Bank of Valletta plc which shed 2.1% to fall back to the €1.86 level after failing to hold to an intra-day high of €1.95. A total of 101,178 shares changed hands. Yesterday, BOV published a Prospectus in connection with a rights issue amounting to approximately €150 million. Eligible shareholders are entitled for 1 new share for every 4 shares held at an offer price of €1.43. The net proceeds from the rights issue are principally earmarked for the further strengthening of the Bank’s Common Equity Tier 1 capital. The rights issue period commences on Wednesday 8 November 2017 and lasts till Wednesday 6 December 2017.
  • RS2 Software plc dropped 3.1% to an over four-month low of €1.55 across 12,900 shares.
  • Lombard Bank Malta plc retreated by a minimal 0.1% back to the €2.20 level on two deals totalling 4,082 shares.
  • Low trading activity also took place in the equity of Malta Properties Company plc which recaptured the €0.51 level (+0.6%).
  • HSBC Bank Malta plc gained 1.3% to close at the €1.884 level on six deals totalling 14,121 shares.
  • Meanwhile, GO plc maintained the €3.55 level across 6,527 shares.
  • The RF MGS Index drifted lower for the first time in five days as it eased by 0.12% from its over seven-week high of 1,127.889 points to 1,126.482 points. Euro zone sovereign yields rebounded slightly from their recent lows despite a minimal contraction in the level of confidence amongst purchasing managers in the euro area. Meanwhile, bond markets shifted their attention to the US and the UK as both the Federal Reserve and the Bank of England held their respective monetary policy meetings. As expected, the US Fed maintained its target federal funds rate unchanged at a level between 1% and 1.25%. On the other hand, the Bank of England increased its benchmark interest rate by 25 basis points to 0.5% from a record low of 0.25%.