Daily Market Highlights (14.10.16)

The MSE Share Index extended yesterday’s gains by a further 0.12% to 4,442.333 points on thin volumes. The uplift in the Index largely reflects the rise in the share price of HSBC which outweighed the decline in RS2. Week-on-week the Index dropped by 0.96% – the steepest weekly decline in the last ten weeks. Download a copy of today’s Equity Market Summary.

On the bond market, the RF MGS Index trended higher for the third consecutive day as it went up by a further 0.15% to a one-week high of 1,170.137 points. The indicate bid prices of the Central Bank of Malta for Malta Government Stocks were mostly higher today (yields went down) despite the fact that euro zone sovereign bond yields nudged upwards. In fact, the 10-year benchmark German Bund yield advanced to 0.058% from 0.038% yesterday. Similarly, the 10-year yields of the two largest peripheral countries with similar credit ratings to Malta’s – Italy and Spain – climbed to 1.390% and 1.130% from 1.383% and 1.113% respectively. On the economic front, fresh data showed that Spanish consumer prices rose by 0.2% year-on-year in September compared to a 0.1% percent drop in August – the sharpest rise in annual consumer prices since May 2014.

Both HSBC Bank Malta plc and Bank of Valletta plc performed positively today. HSBC gained 1.8% to a new six-month high of €1.70 across 18,466 shares. Bank of Valletta moved minimally higher to the €2.29 level on volumes totalling 12,950 shares. The market is now awaiting the publication of BOV’s financial statements for the year ended 30 September 2016 by the end of this month.

Among the large companies, a single deal of just 1,500 shares pulled the equity of RS2 Software plc 2.5% lower to the €1.55 level.

Shallow volumes were also traded in GO plc and Simonds Farsons Cisk plc. Both equities closed unchanged at €3.15 and €7.00 respectively.

Yesterday, the Treasury issued the prices for the new Malta Government Stocks as follows: the 1.5% MGS 2022 (IV) F.I. has been priced at 107.25% (yield to maturity of 0.223% per annum) and the 2.1% MGS 2039 (I) has been priced at 102.50% (yield to maturity of 1.964% per annum). Subscriptions close on Wednesday 19 October or earlier in the event of over-subscription.

No trades took place in the 5.0% Dizz Finance plc 2026 bonds which were admitted to the Official List yesterday.