Daily Market Highlights (09.06.2017)

  • After reaching a one-month high of 4,676.729 points yesterday, the MSE Share Index dropped by 0.27% today to 4,664.233 points as the declines in the share prices of four equities (including those of MIA, HSBC and GO) outweighed the small gain in Medserv. Meanwhile, another five equities finished the day unchanged. Trading activity was weak as just under €0.1 million worth of shares changed hands. Despite today’s drop, week-on-week the local equity index still registered an uplift of +0.76% – the strongest weekly gain since February 2017. Download a copy of today’s Equity Market Summary.
  • Following yesterday’s sharpest decline in a month of -0.21%, the RF MGS Index rebounded strongly as it advanced by 0.35% – the strongest daily uplift since April 2017 – to an over three-month high of 1,129.054 points. Euro zone sovereign yields were lower today following yesterday’s conclusion of the European Central Bank’s (ECB) Governing Council meeting. While maintaining its monetary policy unchanged, the ECB indicated that interest rates have now reached a floor. In addition, the ECB toned down its overall assessment of risks to the euro zone economy. On the economic front, German imports and exports grew much more than expected in the month of April, leaving the overall trade balance fairly unchanged. However, the margin of growth in both imports and exports show the higher degree of economic activity within Europe’s largest economy. Further positive data also came from Italy as the unemployment rate dropped slightly to 11.6% (in line with forecasts) from 11.8%, but still remains above the average within the single currency area of 9.3% which is the lowest level since 2009. In contrast, industrial production in France dropped by a higher-than-expected 0.5% in April from +2.2% in the previous month.
  • Yesterday Malta International Airport plc reported robust growth of +14.4% in the number of passenger movements during the month of May. Notwithstanding this, the equity shed 1.4% to the €4.09 level today albeit on low volumes of just 2,148 shares. MIA explained that the growth experienced last month translates into 68,000 additional travellers welcomed which is equivalent to an extra 12 commercial aircraft carrying a full load of 180 passengers every day.
  • HSBC Bank Malta plc retreated by 0.5% from its near seven-week high of €2.09 to the €2.08 level across 11,129 shares.
  • Two deals totalling 3,000 shares dragged the equity of GO plc 0.3% lower to the €3.49 level.
  • Malta Properties Company plc slumped 5.1% to the €0.502 level albeit on trivial volumes.
  • Very low trading activity also took place in IHI, RS2 and MIDI, all of which closed flat. International Hotel Investments plc and RS2 Software plc maintained the €0.62 and the €1.55 levels respectively. IHI’s Annual General Meeting is scheduled for 13 June whilst that of RS2 will be held on 20 June.
  • Similarly, MIDI plc retained the €0.315 level across 6,000 shares. MIDI’s AGM is also set for 20 June.
  • Lombard Bank Malta plc traded for the first time in the last five trading sessions, retaining its previous closing price of €2.30 on a single deal of 5,428 shares.
  • Within the same sector, Bank of Valletta plc held on to the €2.18 level on volumes totalling 17,833 shares.
  • Meanwhile, Medserv plc recaptured the €1.20 level (+0.8%) on insignificant volumes.
  • This morning, Tigne’ Mall plc held its AGM during which shareholders approved all items placed on the agenda including the payment of a final net dividend of €0.0125 per share payable on 28 June. The equity remained inactive today.