Daily Market Highlights (10.08.2016)

  • The MSE Share Index climbed to its highest level in over a week largely due to the rebound in the share price of GO. In addition, HSBC and MPC also registered gains today. On the other hand, RS2 posted a marginal decline whilst Malita Investments retreated to its 2016 low. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index extended yesterday’s gains as it advanced by a further 0.06% to 1,161.462 points – the highest since the end of April 2015. The indicative bid prices of the Central Bank of Malta for various Malta Government Stocks reached fresh highs once again today. Downward pressure on euro zone sovereign yields is mounting as the available pool of investments which are eligible for the European Central Bank’s quantitative easing programme, is restricting itself even further after the Bank of England too decided to extend its monetary policy measures. The 10-year benchmark German Bund slipped to -0.087% today from -0.076% yesterday.
  • Following yesterday’s publication of the 2016 interim financial statements, the equity of GO plc reacted positively as it gained 3.2% to the €2.91 level – the highest since late May 2016 – across 12,628 shares. GO posted a pre-tax profit figure of €17.1 million, which is 31.3% higher than the corresponding period last year. The Company’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.
  • Also among the large companies, HSBC Bank Malta plc advanced by 0.7% from its twelve-year low of €1.55 to close at the €1.561 level on weak volumes. The equity will start trading ex-dividend as from tomorrow.
  • The other positive performing equity today was Malta Properties Company plc as it rose to a near six-week high of €0.525 (+3.1%) across 95,185 shares.
  • In the same segment, a single deal of just 2,500 shares sent the price of Malita Investments plc down 1% to its 2016 low of €0.851. Recently, Malita published its interim results revealing a 65.7% decline in net profits to €3.9 million largely reflecting a lower incidence of positive fair value movements on the Company’s investment properties and a tax charge of nearly €1.0 million compared to a tax credit of €0.8 million in the comparable period last year.
  • RS2 Software plc retracted back to the €1.90 level (-0.3%) across 41,125 shares. The I.T. Group is expected to publish its interim results tomorrow.
  • Meanwhile, three equities traded unchanged. Bank of Valletta plc held on the €2.23 level on volumes totalling 19,234 shares.
  • Similarly, BOV’s insurance associate, Mapfre Middlesea plc, closed flat at the €2.025 level on shallow volumes.
  • Simonds Farsons Cisk plc maintained its ten-week high of €6.35 across 6,869 shares.
  • This morning, FIMBank plc revealed its results for the six-month period ended 30 June 2016. The trade finance specialist recorded a net profit of USD1.1 million which contrasts sharply with the USD8.0 million loss suffered during the first half of 2015. This achievement came on the back of a notable reduction in non-interest expenses and a substantial decrease in impairment allowances. The Directors of FIMBank remain committed at guiding the Bank in its turnaround strategy.
  • A total of 6,903,494 new shares of International Hotel Investments plc were admitted to listing today in relation to last year’s acquisition by IHI of the IHG Group. Trading in these new shares is expected to commence as from tomorrow.

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