Daily Market Highlights (13.07.2016)

  • The MSE Share Index extended yesterday’s decline by a further 0.08% to 4,528.825 points as the declines in the share prices of BOV and MaltaPost outweighed the gains registered in FIMBank and Loqus Holdings. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index extended yesterday’s decline by a further 0.06% to its lowest level this month of 1,157.274 points. The 10-year German Bund yield advanced from -0.131% of yesterday to -0.124% today. Similarly, the 10-year yields of the Italian and Spanish government bonds also edged higher today. On the economic front, data published today by Eurostat showed that euro zone industrial production dropped by a more than expected 1.2% in May on a monthly basis but rose by 0.5% year-on-year. In particular, industrial production in the euro zone’s largest economy, Germany, fell by 1.3% month-on-month – the worst in 2016.
  • The highlight of the day was the 1.9% increase in the share price of FIMBank plc which helped the equity climb to a fresh seven-year high of USD1.019. A total of 94,730 shares changed hands today. Yesterday, the trade finance specialist announced that its Board of Directors will be meeting on 9 August 2016 to consider and approve the interim financial statements for the half-year ended 30 June 2016 and also consider the declaration of an interim dividend. So far, FIMBank has been the best performing equity this year with a year-to-date uplift of 60.6%.
  • The other positive performing equity today was Loqus Holdings plc as a single deal of 7,461 shares pushed the equity 3.1% higher to the €0.135 level.
  • In contrast, both MaltaPost plc and Bank of Valletta plc ended lower today. MaltaPost retreated by 1.6% dropping back to its 2016 low of €1.80 across 4,171 shares.
  • Meanwhile, Bank of Valletta plc lost 0.9% to the €2.201 level across 36,184 shares.
  • Also amongst the large companies, the equities of GO, IHI and RS2 were all active today but no changes were registered to their respective share prices. Low turnover was particularly evident in GO plc, which maintained the €2.85 on trivial volumes. Eligible GO shareholders have until 22 July to submit their relative Acceptance Form in connection with TT ML Limited’s offer to acquire GO shares at the price of €2.87 per share.
  • Similarly, RS2 Software plc (5,380 shares) and International Hotel Investments plc (10,000 shares) closed unchanged at €2.14 and €0.699 respectively. IHI preferred applicants (i.e. shareholders as at the close of trading on 27 June) have until 19 July to apply for the new €55 million 4.0% secured bonds maturing in 2026. The general public offer for the same bond issue opens on 20 July and closes on 22 July, or earlier in the case of over-subscription.
  • This morning, Medserv plc announced that its Board of Directors is scheduled to meet on 26 August 2016 to consider and approve the interim financial statements for the half-year ended 30 June 2016. No trades in Medserv shares took place today.
  • Malta International Airport plc issued an announcement this afternoon explaining that it is now expecting 4.97 million passengers to pass through the airport this year, up by 5.1% from the previous 2016 forecast of 4.73 million (+2.4%) revealed in January 2016. This represents a 7.5% uplift on the record number of 4.62 million passenger movements registered in 2015 and the seventh consecutive year of record performances. In June, the company registered a 6.8% increase in passenger movements when compared to the corresponding period last year, bringing the total increase in passenger movements in the first half of 2016 to +9.8% when compared to the first six months of 2015. Overall, growth was driven by an increase in seat capacity (+7.4%) and seat load factor (up to 80% from 78% in the first half of 2015). Commenting on the results, MIA CEO Mr Alan Borg said that the growth registered by MIA is even more significant when considering that it is occurring in both the peak and the shoulder months in line with the nationwide strategy of promoting Malta as a year-round destination.
  • Preferred applicants of MIDI plc (i.e. holders of the 7% MIDI plc 2016/18 (EUR) bonds, 7% MIDI plc 2016/18 (GBP) bonds and shareholders of MIDI plc) have until 18 July to apply for the new €50 million 4.0% secured bonds maturing in 2026. Bondholders of the 7% GBP bonds can transfer their holding into the new 4% EUR bonds at a rate of GBP0.834 per EUR1.

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