Daily Market Highlights (09.02.17)

  • The MSE Share Index climbed by a further 0.19% to 4,734.735 points today as the gains registered in the share prices of BOV, GO and HSBC outweighed the 0.4% decline in MIA. Trading volumes were weak today as only €0.14 million worth of shares changed hands – the lowest daily volume this year. Week-on-week, the Index trended 0.40% higher largely on the back of the gains in the equities of HSBC (+2.0%), BOV (+0.9%) and RS2 (+0.3%). Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index halted a three-day negative streak as it rebounded by 0.62% – the sharpest daily uplift in two months – from its nineteen-month low of yesterday to 1,122.598 points today. Today’s uplift erased all the losses posted in the previous three days and finished-off the week 0.12% higher when compared to last Friday. The opening indicative bid prices of the Central Bank of Malta for all Malta Government Stocks (MGS) registered gains today. In particular, the bids for MGSs with maturities of nine years and over increased by more than 100 basis points. Euro zone sovereign yields slipped further today (bond prices went up) possibly in reaction to disappointing export data from Europe’s powerhouse – Germany – which month-on-month fell by 3.3% in December 2016 from +3.9% the previous month and much worse than an expected drop of 1.1%.
  • Yesterday afternoon, the Treasury announced the fixed offer prices of the 3 new Malta Government Stock issues. The 1.4% MGS 2023 (III) was priced at 104.00% giving a yield to maturity of 0.788% per annum; the 1.5% MGS 2027 (I) was priced at 100.50% giving a yield to maturity of 1.448% per annum; and the 2.2% MGS 2035 (I) was priced at 100.25% giving a yield to maturity of 2.184% per annum. Subscriptions for the General Public open on Monday 13 February and close on Wednesday 15 February or earlier in the case of over-subscription. Tenders in the form of sealed bids will be accepted until noon on Monday 20 February.
  • The equity of Bank of Valletta plc advanced by 0.8% to its highest closing price in more than nine years of €2.189. Activity declined to only 11,200 shares.
  • Within the same sector, HSBC Bank Malta plc edged minimally higher to the €2.06 level across 17,075 shares. The Bank is scheduled to publish its 2016 full-year financial results on 21 February.
  • The other positive performing equity today was GO plc which partly erased yesterday’s drop of 1.2% as it rebounded by 0.6% to the €3.43 level on two deals totalling 10,000 shares.
  • Despite revealing upbeat January 2017 traffic results on Tuesday, the equity of Malta International Airport plc eased by 0.4% to the €4.032 level on light volumes totalling 2,965 shares. Last month, MIA welcomed a record of 301,289 passengers – up by 27.3% year-on-year. The rise in passenger traffic was due to the strong increase in both aircraft movements (+22.1%) and seat capacity (+27.7%). Moreover, the seat load factor increased by 1 percentage point to 72.7%. Early in January 2017, MIA had estimated a growth of between 2% to 3% in total passenger numbers this year. The Company is due to reveal its 2016 full-year financial results on 22 February.
  • Meanwhile, Malita Investments plc maintained its near two-year low of €0.81 across 38,566 shares.