Daily Market Highlights (06.07.2016)

Following the declines over the past two days, the MSE Share Index rebound by 0.19% today to a three-month high of 4,582.013 points as the gains in four equities outweighed the decline in HSBC. Download a copy of today’s Equity Market Summary.

On the bond market, the RF MGS Index extended yesterday’s gains by a further 0.04% and advanced to a new fourteen-month high of 1,160.340 points. Volatility in financial markets returned at the forefront as concerns are mounting that the UK’s recent decision to leave the EU has wider implications and repercussions across the globe. The 10-year benchmark German Bund yield hit another record low of -0.204% today. The 10-year yields of both Italy and Spain also moved lower.

The bulk of trading took place in the equity of Lombard Bank Malta plc. Indeed, activity in Lombard represented nearly 78% of the total value of equities traded today. The share price climbed 5.6% to a five-month high of €2.26 across 175,565 shares having a market value of €0.39 million. Lombard is expected to reveal its interim results on 25 August.

Within the same segment, FIMBank plc continued to move higher as it reached a fresh six-year high of USD0.96 (+1.1%) on volumes totalling 14,020 shares.

The other positive performing equities today were GO plc and RS2 Software plc. GO advanced by 0.7% to the €2.88 level across 2,146 shares whilst a single deal of just 230 shares pushed the equity of RS2 0.9% higher back to the €2.15 level.

Also amongst the large companies, HSBC Bank Malta plc lost 0.9% to the €1.585 level across 30,000 shares. The Bank will publish its 2016 interim results on 3 August.

In contrast, Bank of Valletta plc held on to the €2.25 level across 9,000 shares.

Similarly, a single deal of 5,800 shares left the equity of Malta International Airport plc unchanged at the €4.25 level. The airport operator should shortly be announcing its June traffic results.

Last week, International Hotel Investments plc published a Prospectus in connection with the issuance of €55 million 4.0% secured bonds maturing in 2026. IHI 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.

MIDI plc also 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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