Daily Market Highlights (15.09.2017)

  • The 0.22% uplift in the MSE Equity Price Index registered yesterday was short-lived as the Index resumed its recent downward trend and closed 0.15% lower at 4,640.904 points. Trading activity was spread across seven equities – three trended in negative territory, two closed the day unchanged and another two posted gains. Volumes dropped significantly as only €0.13 million worth of shares changed hands compared to an average of just over €1 million registered in the previous three trading sessions. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index registered losses for the fourth consecutive day as it eased by a further 0.01% to 1,122.375 points – the lowest since 1 August 2017. Euro zone sovereign yields continued to add to their recent gains as two high-ranking officials within the European Central Bank remarked that the central bank ought to “ease up on the accelerator” and that “it is time to take a decision now on scaling back … bond purchases at the beginning of next year”. On the economic front, fresh statistics showed that wages in the single currency area rose by 2% year-on-year in the second quarter this year – the fastest rate of increase in two years. Week-on-week, the RF MGS Index fell by 0.44% – the sharpest weekly decline in two months.
  • For the third consecutive trading session, Malta International Airport plc featured as the most actively traded. The share price edged 0.2% higher to the €4.25 level on volumes of 9,727 shares. Last week MIA announced an increase of 14.8% year-on-year in the number of passenger movements during August and on Sunday the local media reported that Ryanair will be adding 12 new routes for next year’s summer season and will be basing its fifth aircraft in Malta. Ryanair also stated that following the increase to 54 routes as from next year, it should be generating 2.5 million passenger movements.
  • The other positive performing equity today was Malta Properties Company plc which gained 2.8% to the €0.519 level albeit on trivial volumes totalling 2,500 shares.
  • Low trading activity also took place in MIDI plc as a single deal of 14,000 shares left the equity at the €0.31 level.
  • In the retail banking sector, HSBC Bank Malta plc maintained the €1.92 level across 14,885 shares whilst Bank of Valletta plc slipped 0.7% lower to the €2.09 level on 17,531 shares. On Wednesday, BOV announced that it received regulatory approval from the European Central Bank to double its authorised share capital to €1 billion. The Bank is expected to publish another set of interim financial statements by the end of October 2017 covering the twelve-month period ending 30 September 2017. Investors are also awaiting details of the €150 million rights issue planned by the Bank to bolster its capital ahead of more stringent capital requirements which will come into effect on 1 January 2019.
  • Also among the large companies, GO plc retreated by 0.6% to the €3.55 level on light volumes.
  • PG plc eased by a minimal 0.1% from its record high of €1.41 to the €1.409 level across two deals totalling 10,000 shares.
  • The newly issued €20 million 3.5% Simonds Farsons Cisk plc 2027 bonds are expected to be admitted to listing next Monday 18 September 2017 whilst trading is expected to commence the following day, Tuesday 19 September 2017.