Daily Market Highlights (09.11.2017)

  • The MSE Equity Price Index extended yesterday’s decline of 0.94% by a further 0.02% to a fresh eleven-month low of 4,540.101 points as the 1% drop in the share price of BOV slightly outweighed the gains in Mapfre Middlesea (+3.4%) and RS2 (+0.4%). Trading volumes contracted to a six-day low of €0.2 million. Download a copy of today’s Equity Market Summary.
  • Following yesterday’s surge of 0.24% to an over four-month high of 1,131.288 points, the RF MGS Index tumbled by 0.2% today to 1,129.066 points. Euro zone sovereign yields rose as the European Commission (“EC”) substantially revised its GDP growth forecasts higher for the whole of the single currency area. In fact, the EC is now expecting the euro zone’s economy to expand by 2.2% – the highest level of growth in ten years – from an earlier forecast of +1.7%. Likewise, the EC is anticipating a further growth of 2.1% in 2018 which is also higher than the earlier projection of +1.8%.
  • Bank of Valletta plc trended lower for the second consecutive trading session as it lost 1% to the €1.803 level on volumes totalling 50,945 shares. The rights issue offer period commenced yesterday and closes on 6 December 2017.
  • On the other hand, BOV’s insurance associate – Mapfre Middlesea plc – rebounded by 3.4% to the €1.861 level across 7,695 shares.
  • RS2 Software plc regained the €1.57 level (+0.4%) on two deals totalling 13,341 shares.
  • Also among the large companies by market capitalisation, GO, HSBC, IHI and MIA all closed the day unchanged. GO plc and HSBC Bank Malta plc maintained the €3.531 and €1.86 levels on light volumes.
  • International Hotel Investments plc held on to the €0.63 level after recovering from an intra-day low of €0.625 (-0.8%). A total of 25,030 shares traded.
  • Similarly, Malta International Airport plc also ended flat at the €4.62 level on two deals totalling 4,300 shares.  Yesterday, MIA published the October 2017 traffic results whereby it revealed a 15.4% year-on-year increase in passenger movements to 596,648 movements – a record for the month of October. The airport operator also explained that during the summer season (which runs from April to October), passenger movements amounted to nearly 4.25 million, representing an increase of more than 600,000 passenger movements when compared to the same period in 2016. Year-to-date, MIA welcomed more than 5.2 million passengers, representing an 18.6% increase over the previous corresponding period.
  • PG plc retained the €1.479 level on a single deal of 13,385 shares and Simonds Farsons Cisk plc retained its all-time high of €9.69 albeit on trivial volumes. Today, Farsons announced that the Board of the Planning Authority voted against the recommendation of the Planning Directorate for the approval of a permit related with the creation of a business park along Mdina Road, Mriehel. The Board of Directors of the Company will be meeting immediately to consider the implications of this unexpected decision by the Planning Authority Board.