Daily Market Highlights (07.07.2016)

After closing at its highest level in the last three months yesterday, the MSE Share Index retreated by 0.08% to 4,578.358 points today as the declines in five equities outweighed the gain registered in the share price of Lombard Bank Malta plc which climbed to a fresh five-month high of €2.28 (+0.9%) across 2,550 shares. Download a copy of today’s Equity Market Summary.

Following the gains registered in the previous two days, the RF MGS Index retreated by 0.11% from yesterday’s fourteen-month high to 1,159.052 points today. Overall, euro zone sovereign yields rose today. Indeed, the benchmark 10-year German Bund yield advanced from yesterday’s all-time low of -0.204% to -0.164%. The 10-year yields of both Italy and Spain also moved higher, albeit marginally. On the economic front, latest data showed that German industrial production contracted by 1.3% in May on a monthly basis after the revised down 0.5% growth seen in April. On a yearly basis, production contracted by 0.4%.

In contrast, both Bank of Valletta plc and HSBC Bank Mata plc posted declines today. BOV retreated by 0.2% to the €2.245 level on activity of 16,596 shares whilst HSBC dropped by 0.3% to €1.581 – its lowest since end of March 2016. HSBC will publish its 2016 interim results on 3 August.

Also among the large companies, a single deal of just 1,000 shares pulled the equity of International Hotel Investments plc 0.1% lower to the €0.699 level. The new shares in connection with the recent 3 for 100 bonus share are expected to be admitted to listing on Monday 11 July. In the meantime, preferred applicants (i.e. shareholders as at the close of trading on 27 June) have until 19 July to apply for the new €55 million 4.0% secured bonds maturing in 2026. The general public offer opens on 20 July and closes on 22 July, or earlier in the case of over-subscription.

Medserv plc inched 0.1% lower to the €1.79 level across 2,800 shares.

Malta Properties Company plc lost 0.2% to end today’s trading session at the €0.507 level on shallow volumes totalling 3,665 shares.

Within the same segment, Malita Investments plc (9,000 shares) and Tigne’ Mall plc (23,700 shares) held on to €0.89 and €1.05 respectively. Tigne’ Mall will settle the recently approved final net dividend of €0.0125 per share on 12 July.

FIMBank plc was the most actively traded equity today as 144,020 shares changed hands, leaving the share price unchanged at its six-year high of USD0.96 after recovering from an intra-day low of USD0.925 where most of the activity took place.

Another four equities closed flat today. GO plc (5,954 shares) and Malta International Airport plc (1,700 shares) maintained the €2.88 and €4.25 levels respectively. Eligible GO shareholders have until 22 July to submit their relative Acceptance Form in connection with TT ML Limited’s offer to acquire GO shares at the price of €2.87 per share.

Similarly, 12,550 shares of RS2 Software plc traded at the €2.15 level whilst Simonds Farsons Cisk plc also closed flat at the €6.28 level on light volumes.

Last week, 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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