Daily Market Highlights (11.08.2016)

  • The MSE Share Index failed to register a three-day positive streak as it slipped by 0.22% today to 4,445.204 points. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index increased for the third consecutive day to yet another sixteen-month high of 1,162.211 points. The indicative bid prices of the Central Bank of Malta for ten Malta Government Stocks reached fresh highs once again today, including the two MGSs issued last February – the 1.5% 2022 IV and the 2.5% 2036 I which went up to 107.48% and 107.33% from the February issue prices of 105.0% and 101.50% respectively. Euro zone sovereign yields extended their downward trend amid growing expectations that the European Central Bank (ECB) will move further down the ratings spectrum and further afield in the duration curve in order to be able to fulfil its asset purchase programme of €80 billion a month. Indeed, the 10-year benchmark German Bund yield touched a near two-week low of -0.121% today (from a high of -0.082% of yesterday) whilst the Spanish counterpart slipped to a new all-time low of 0.930%, helped in part by positive developments in relation to the near eight-month political deadlock in Spain.
  • Most of the today’s trading activity took place in the equity of FIMBank plc which declined by 3.6% to the USD0.98 level (after touching an intra-day low of USD0.969) across 112,565 shares. Yesterday, the trade finance specialist revealed its interim results showing a net profit figure of USD1.1 million which contrasts sharply with the USD8.0 million loss suffered during the first six months 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.
  • Also in the banking sector, Bank of Valletta plc retreated by a minimal 0.2% to the €2.225 level on volumes totalling 14,685 shares.
  • The other negative performing equity today was Medserv plc as it retracted back to the €1.78 level (-1.2%) on 18,400 shares. Medserv is due to publish its interim results on 26 August.
  • Meanwhile, a single deal of just 500 shares left the equity of RS2 Software plc intact at the €1.90 level. RS2 is expected to publish its interim results later on today.
  • Thin trading volumes were also registered in GO plc which advanced by 0.3% to a fresh eleven-week high of €2.92. On Tuesday, GO published its interim financial statements showing 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.
  • Malta International Airport plc (14,558 shares) and Mapfre Middlesea plc (4,079 shares) each gained 0.7% to €4.22 and €2.04 respectively. MIA’s interim results will be released on Wednesday 17 August.
  • This morning, the Treasury announced that it received applications from the general public for the two new Malta Government Stocks for a value of nearly €186.0 million (nominal). The applications for the 1.5% MGS 2022 (IV) having a total nominal value of €5,265,500 will be accepted in full. On the other hand, applications received for the 2.4% MGS 2041 (I), which amounted to just below €180.7 million, will be satisfied in full for the first €50,000 (nominal) plus a further 15% for any excess amounts rounded up to the nearest €100. Interest on the two new MGS started accruing as from Monday 8 August 2016. In due course, the Treasury will be announcing the date when the refunds of unallocated funds will be made.

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