Daily Market Highlights (12.06.2017)

  • The MSE Share Index recovered most of the losses suffered last Friday as it rebounded by 0.21% to 4,674.018 points, reflecting the gains in the share prices of BOV, Farsons, MIDI and Malta Properties Company. Meanwhile, another four equities finished the day unchanged. Trading activity remained weak as €0.14 million worth of shares changed hands.Download a copy of today’s Equity Market Summary.
  • The RF MGS Index performed strongly for the second consecutive day as it advanced by a further 0.33% to a near five-month high of 1,132.731 points. The indicative opening bid price quoted by the Central Bank of Malta for the most recently issued long-dated Malta Government Stock – i.e. the 2.2% 2035 (I) – reached a fresh record high of 103.89% compared to an issue price of 100.25% last February. The yields on the sovereign bonds of the three largest peripheral countries – Italy, Spain and Portugal – dropped today, possibly reflecting political relief as the results of the first round of the French parliamentary election look set to give President Emmanuel Macron a very comfortable majority to push through business-friendly reforms. In Italy, the euro-sceptic 5-Star Movement failed to make the run-off vote in almost all main cities in the local elections. On the other hand, in the UK, uncertainty lingered as Prime Minister Theresa May is trying to organise a united front ahead of the start of Brexit negotiations with the EU next week after the disappointing result of last week’s election. Meanwhile, the international financial media reported that an influential French multinational bank stated that it is expecting the European Central Bank to extend its quantitative-easing programme to 2019 as core inflation still remains far from the central bank’s target of close but under 2%.
  • Simonds Farsons Cisk plc gained 0.7% to regain its record high of €7.60 albeit on shallow volumes totalling 900 shares. Last week, the Company issued an Explanatory Circular with respect to the proposed spin-off of Trident Estates Limited into a separate company listed on the Malta Stock Exchange. Farsons is due to hold its AGM on 27 June.
  • Bank of Valletta plc continued to trade within a tight range as it added 0.4% to the €2.189 level across 26,013 shares.
  • In the property segment, Malta Properties Company plc surged 5.4% to the €0.529 level across 11,790 shares whilst a single deal of just 3,000 shares pushed the equity of MIDI plc 1.6% higher back to the €0.32 level. MIDI is due to hold its Annual General Meeting on 20 June.
  • On the other hand, Plaza Centres plc maintained the €1.04 level across 5,950 shares.
  • Malta International Airport plc also closed flat at the €4.09 level after touching an intra-day high of €4.149. Only 2,415 shares traded today. Last Thursday, MIA reported robust growth of +14.4% in the number of passenger movements during the month of May which is equivalent to an extra 12 commercial aircraft carrying a full load of 180 passengers every day.
  • A single deal of 4,000 shares left the equity of International Hotel Investments plc unchanged at the €0.62 level. IHI will be convening its AGM tomorrow. Shareholders as at 27 June will be eligible to a 3 for 100 bonus share issue.
  • HSBC Bank Malta plc retained the €2.08 level across 23,729 shares. Today, the Bank announced that its Board of Directors is scheduled to meet on Monday 31 July to consider and approve the interim financial statements for the half-year ending 30 June 2017. The Directors will also consider the declaration of an interim dividend.