Daily Market Highlights (08.07.2021)

Strong activity persists in RS2 shares


The MSE Equity Price Index drifted 0.34% lower to 3,919.673 points as the declines in RS2 and MIA offset the gains in IHI and Farsons whilst Lombard Bank Malta plc closed the day unchanged at the €1.87 level on 3,900 shares. Download today’s Equity Market Summary.

Activity across local equities remained centered around RS2 Software plc as a total of 142,397 ordinary shares having a market value of €0.24 million changed hands. The equity retracted by 6.6% to end the day at the €1.71 level.

A single deal of 2,500 shares forced the equity of Malta International Airport plc to move 0.8% lower back to the €6.35 level. Yesterday, MIA published its June 2021 traffic results showing that the airport operator handled 190,505 passenger movements which represents a considerable improvement over the traffic volumes recorded in the previous months. Nonetheless, when compared to June 2019, the amount of passenger movements translates into a drop of 73.6%. The top markets for the month were Italy, Germany, France, Poland and Spain, with the Spanish market re-joining the airport’s five most popular destinations following the resumption of flights to Valencia and Seville.

International Hotel Investments plc added 1.5% to regain the €0.66 level across 11,842 shares.

The other positive performing equity today was Simonds Farsons Cisk plc with an uplift of 3% to the €8.50 level on a total of 609 shares.

The RF MGS Index gained 0.15% to 1,101.490 points as international bond yields trended lower amid heightened volatility across financial markets. Today, the European Central Bank unveiled the conclusions of its monetary policy strategy review in which the central bank set a new inflation target of 2% compared to the previous aim of achieving inflation “below but close to 2%”. In contrast to the US Federal Reserve which recently said that it might allow inflation to overshoot the 2% target, the ECB explained that both negative and positive deviations from its 2% target are “equally undesirable”. Meanwhile in the US, the Federal Reserve of New York announced that it will begin gradual sales of its corporate bond holdings. The corporate bond sales follow the start of the winding down of a similar emergency measure related to ETF holdings and is consistent with the Federal Reserve’s plans to begin withdrawing its ultra-loose monetary support measures. The New York Fed explained that its sales will be gradual and orderly and will be conducted in a manner that aims to minimize the potential for any adverse impact on market functioning by considering the liquidity conditions across the secondary market.