The MSE Share Index shed a further 0.06% today to 4,419.615 points as the declines in the share prices of MIA and Farsons outweighed the 2.7% rebound in MPC. Download a copy of today’s Equity Market Summary.
On the bond market, the RF MGS Index erased yesterday’s gains as it fell by 0.15% to a new four-week low of 1,164.626 points. Today’s drop reflected the sharp upward movements in euro zone yields on fresh concerns on the ability of the European Central Bank (ECB) to continue stimulating growth through an even more expanded monetary easing programme. The ECB Executive Board member Ms Sabine Lautenschlaeger said the central bank should hold off on new monetary easing measures. In fact, the 10-year benchmark German touched a near twelve-week high of 0.081% this morning (the highest since the publication of the Brexit referendum result) before retreating to the 0.045% level. Similarly, movements in the 10-year yields of Italy and Spain continued to remain volatile, touching intra-day highs of 1.330% and 1.139% from the lows of 1.250% and 1.048% registered yesterday.
Most of today’s trading activity took place in the equity of Simonds Farsons Cisk plc which slipped by 0.2% from its all-time high of €6.50. A total of 34,100 shares traded (having a market value of €0.22 million and representing 73% of the total value of equities traded today) with the equity easing to €6.49. This morning, Farsons announced that its Board of Directors is scheduled to meet on Wednesday 28 September 2016 to consider and approve the Group’s financial statements for the six-month period ended 31 July 2016. The Directors will also consider the declaration of an interim dividend which would be paid to all shareholders as at close of trading on Monday 3 October.
The other negative performing equity was Malta International Airport plc as two deals totalling 1,400 shares pulled the equity 1.1% lower to the €4.205 level. Last week, MIA published the August traffic results revealing a 2.3% increase in passenger movements over August 2015. During the first eight months of 2016, MIA registered a 7.7% increase in passenger movements to 3.36 million when compared to the same period last year. In July, MIA had revised upwards its passenger growth forecast for 2016 to +7.5% to 4.97 million passengers compared to the previous 2016 forecast of 4.73 million (+2.4%) revealed in January 2016.
In the banking sector, both Bank of Valletta plc (12,983 shares) and HSBC Bank Malta plc (2,718 shares) traded flat at €2.25 and 1.60 respectively.
Likewise, a single deal of 30,000 shares left the equity of FIMBank plc unchanged at the USD0.915 level.
In contrast, Malta Properties Company plc partially recovered yesterday’s decline as it recaptured the €0.53 level (+2.7%) on volumes totalling 25,800 shares.
Yesterday evening, International Hotel Investments plc announced that it has acquired the remaining 80% shareholding in QPM Limited. As a result, QPM is now a wholly-owned subsidiary of IHI. QPM is a multi-disciplinary consultancy company providing services in architecture, civil and structural engineering, integrated building services, interior design, project management, cost management and sustainability management. The Board of IHI expressed its confidence that the full ownership of QPM will place IHI in a stronger position to achieve its strategic objective to develop and operate properties worldwide.