Daily Market Highlights (05.12.2019)

Equity market sell-off continues


The MSE Equity Price Index moved lower for the third consecutive day as it slipped by a further 0.62% to a near nine-month low of 4,649.562 points. Six companies finished the day in negative territory whilst another six shares closed unchanged. Trading activity improved considerably to €0.52 million largely on the back of heightened volumes in GO plc which dropped by 1% to the €4.14 level across 51,400 shares having a market value of €0.21 million. Download today’s Equity Market Summary.

Also among the large caps, Bank of Valletta plc moved 0.9% lower to its over ten-year low of €1.05 on activity totalling 91,143 shares.

International Hotel Investments plc closed below the €0.80 mark for the first time in six weeks as it retracted by 2.5% to the €0.79 level across 22,422 shares.

MIDI plc extended its recent sharp losses as it shed a further 1% to the €0.515 level across 61,300 shares. On Monday, MIDI announced that discussions with Tumas Group in connection with the possibility of establishing a joint venture with respect to the development of Manoel Island ceased by mutual agreement. Nonetheless, MIDI noted that it remains fully committed to the Manoel Island project and that development works will commence once the required planning permits are issued.

Plaza Centres plc also declined by 1% to the €1.01 level on two deals totalling 20,000 shares whilst Malta Properties Company plc tumbled almost 8% to €0.65 albeit on trivial activity.

Within the same sector, Tigné Mall plc stayed at the €0.90 level across 4,490 shares.

Low trading activity also took place in the equities of HSBC Bank Malta plc (€1.20), Lombard Bank Malta plc (€2.26) and Malta International Airport plc (€7.10) all of which ended the day unchanged.

Five deals totalling 30,980 shares left the equity of BMIT Technologies plc at the €0.51 level.

Similarly, RS2 Software plc traded flat at €2.10 on a total of 46,000 shares.

Following yesterday’s upsurge of 0.69% (which was the sharpest since mid-August 2019), the RF MGS Index slipped back by 0.33% today to 1,147.372 points. All prices of Malta Government Stocks trended lower as euro sovereign bond yields rallied amid renewed hopes that the US and China might be closer to reach a trade deal. On the economic front, data in Europe continued to disappoint amid weak retail sales across the single currency area as well as slowdowns in German factory orders and Spanish industrial production.

Across the local corporate bond market, several bonds continued to register significant declines. The worst performing was the 3.75% Mercury Projects Finance plc 2027 with a drop of almost 300 basis points to 97.02%. The 4.5% Hili Properties plc 2025 shed 250 basis points whilst the 4.9% Gasan Finance Company plc 2019/21 and the 4.5% Medserv plc 2026 lost around 200 basis points. In addition, four other corporate bonds fell by more than 100 basis points including the 4.25% Mercury Projects Finance plc Secured € 2031 (-142 basis points), the 5% Tumas Investments plc 2024 (-139 basis points) and the two MIH plc bonds maturing in 2020 and 2022. On the other hand, one only bond recorded a gain of more than 100 basis points – namely the 4% IHI plc 2026 – which rallied by 148 basis points to 101.5%.

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