Daily Market Highlights (09.08.2016)

  • The MSE Share Index erased the declines of the previous two trading sessions as it edged up by 0.79% to 4,439.727 points. The uplift in the local equity index largely took place on the back of the recovery in the share price of IHI which rallied by 7.6% albeit on insignificant volumes. BOV, RS2 and MPC also performed positively whilst HSBC was the only equity to post a decline today. Trading activity remained subdued across the equity market. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index climbed 0.15% to 1,160.812 points – its highest level since the end of April 2015. Indeed, the indicative bid prices of the Central Bank of Malta for various Malta Government Stocks (including the shorter-term dated MGS issued last February – i.e. the 1.5% MGS 2022 IV) reached a new all-time high today. Such gains reflected developments in sovereign yields in Europe where the search for yield is becoming even more difficult in the context of the European Central Bank’s and now the Bank of England’s expanded quantitative easing programmes. In fact, the 10-year yields of both Spain and Britain hit record lows today at 0.973% and 0.592% respectively.
  • A single deal of just 650 shares lifted the equity of International Hotel Investments plc back to the €0.65 level (+7.6%). Tomorrow, an additional 6,507,168 IHI shares will be allotted in relation to last year’s acquisition by IHI of the IHG Group.
  • Also amongst the large companies, Bank of Valletta plc regained the €2.23 level (+0.5%) across 3,320 shares.
  • Similarly, RS2 Software plc advanced by 0.3% to the €1.905 level on thin volumes totalling 2,050 shares. RS2 is expected to reveal its interim results on Thursday 11 August.
  • In the property segment, Malta Properties Company plc gained 0.2% to the €0.509 level on low volumes.
  • HSBC Bank Malta plc failed to hold on to its intra-day high of €1.60 (+3.2%) as it closed at its twelve-year low of €1.55 (-0.1%) on volumes totalling 34,000 shares.  HSBC shares will continue to trade with the entitlement to the gross interim dividend of €0.071 per share until tomorrow.
  • In the meantime, three equities finished today’s trading session unchanged. GO plc briefly touched an intra-day low of €2.80 before closing flat at €2.82. A total of 1,500 GO shares changed hands today. This afternoon, GO revealed its six-month performance ended 30 June 2016 in which the Group posted a pre-tax profit figure of €17.1 million which is 31.3% higher than the corresponding period last year. GO’s results were positively impacted by a gain of €6.1 million arising from the acquisition of a subsidiary. Eliminating this one-off gain, EBITDA still improved by 19% to €29.9 million.
  • Malta International Airport plc (967 shares) and Mapfre Middlesea plc (2,500 shares) also maintained the €4.19 and €2.025 levels respectively. The airport operator is scheduled to publish its 2016 interim results on Wednesday 17 August.

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