Daily Market Highlights (06.07.2017)

  • The MSE Share Index extended yesterday’s gains as it advanced by a further 0.1% to 4,729.757 points (the highest level in over three-months), reflecting the increases in the share prices of RS2 (+2.2%) and Farsons (+1.7%) which outweighed the drops in PG (-1.5%), HSBC (-0.5%) and BOV (-0.05%). Meanwhile, four other shares closed the day unchanged. Trading volumes declined substantially to €0.27 million from €0.65 million yesterday. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index trended lower for the sixth consecutive day – the longest negative streak in nearly four months – as it dropped by a further 0.19% to a fresh near two-month low of 1,118.888 points. Euro zone sovereign yields continued to trend higher this morning after minutes of the US Federal Reserve monetary policy meeting held between 13 and 14 June published yesterday showed that some members warned against the dangers of letting the world’s largest economy to overheat as it could create financial stability risks. This afternoon, euro zone sovereign yields surged even higher following the publication of the minutes of the ECB monetary policy meeting held on 8 June which showed that members of the ECB Governing Council discussed the possibility of the ECB removing some reference to its easing bias. Nonetheless, the Governing Council decided otherwise as “it was necessary to avoid signals that could trigger a premature tightening of financial conditions”. Earlier on today, ECB chief economist Peter Praet was reported as saying that the ECB needs to be patient and maintain a steady hand to its current monetary policy as inflation is still far below the central bank’s target of close but below 2%. The ten-year benchmark German Bund yield recorded a near eighteen-month high of 0.569% today.
  • RS2 Software plc registered its twelfth consecutive daily uplift with a further gain of 2.2% to a fresh 2017 high of €1.83 across 59,200 shares.
  • The equity of Simonds Farsons Cisk plc advanced by 1.7% to a new all-time high of €7.73 across three deals totalling 2,100 shares.
  • In the retail banking sector, Bank of Valletta plc eased minimally lower to the €2.199 level across 9,000 shares whilst HSBC Bank Malta plc slipped back to the €2.07 level (-0.5%) on four deals totalling 5,000 shares.
  • PG plc retreated by 1.5% from its record high of €1.32 to the €1.30 level across 15,600 shares.
  • Meanwhile, Malta International Airport plc maintained the €4.15 level across 7,050 shares. The airport operator is expected to announce the June traffic results and the updated traffic forecasts for 2017 in the coming days.
  • In the property segment, Malita Investments plc (60,500 shares) and Plaza Centres plc (20,000 shares) also traded unchanged at €0.74 and €1.00 respectively. Plaza is due to publish its half-year results on 19 July.
  • A single deal of just 1,000 shares left the equity of Mapfre Middlesea plc at the €1.86 level. The Company is expected to reveal its half-year results on 21 July.
  • Trading in the newly issued 5% Mediterranean Investments Holding plc 2022 bonds commenced today. The bond rallied by 250 basis points to 102.50% on volumes totalling just over €0.1 million nominal.