Daily Market Highlights (05.07.2016)

  • The MSE Share Index extended yesterday’s decline by a further 0.06% to 4,573.332 points as the decline in the share price of RS2 outweighed the marginal gains of BOV and MPC. Activity was limited to merely six equities whilst total trading volumes dropped to just €0.10 million. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index gained 0.01% to 1,159.905 points. The 10-year benchmark German Bund yield approached its record all-time low of -0.170% today as it momentarily touched -0.165%. Demand for “safe-havens” was also evident across the Atlantic where the US 10-year Treasury hit a fresh record low of 1.378% on renewed global growth concerns. On the other hand, the 10-year yields of the two largest euro zone peripheral countries – Italy and Spain – edged higher. On the economic front, latest data showed that euro zone retail sales rose by 0.4% in May month-on-month and 1.6% on a yearly basis, confirming a generally positive trend for retail sales in 2016 when they showed gains every month except in March.
  • RS2 Software plc closed the day 0.9% lower at the €2.13 level (equivalent to €3.55 pre-share split) across 9,960 shares.
  • In contrast, Malta Properties Company plc registered the best performance today as the share price gained 0.2% to the €0.508 level on volumes totalling 30,000 shares.
  • Bank of Valletta plc recaptured the €2.25 level across four deals totalling 8,950 shares.
  • Within the same segment, HSBC Bank Malta plc held on at the €1.60 level across 6,923 shares. The Bank will publish its 2016 interim results on 3 August.
  • Also among the large companies, a single deal of just 1,100 shares left the equity of International Hotel Investments plc unchanged at the €0.70 level. Last week, IHI published a Prospectus in connection with the issuance of €55 million 4.0% secured bonds maturing in 2026. The Group is reserving an amount of €30 million for its shareholders (preferred applicants) while the balance of €25 million is available for subscription by the general public
  • Similarly, Malta International Airport plc maintained the €4.25 level across 7,400 shares. The airport operator should shortly be announcing its June traffic results.
  • Last Friday, MIDI plc published a Prospectus in connection with the issuance of €50 million 4.0% secured bonds maturing in 2026. The new bonds are 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. Applications close on 18 July.

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