Daily Market Highlights (15.11.16)

  • On the bond market, following three consecutive sessions of declines, the RF MGS Index rebounded by 0.4% from yesterday’s 8-month low to close the day at 1,146.266 points. Today’s rebound reflects the dip across Eurozone yields with Germany’s benchmark 10-year yield sliding back to just below 0.3% level compared to yesterday’s intra-day high of almost 0.4%. Yields in peripheral countries also trended lower especially in Italy with its 10-year yield moving back to around the 2% level after the country announced a better-than-expected 0.3% growth in its GDP during the third quarter of 2016 compared to no growth in the second quarter.
  • On the local equity market, the MSE Share Index extended yesterday’s 0.3% drop with a decline of a further 1.1% today to an almost 1-month low of 4,495.921 points. Download a copy of today’s Equity Market Summary.
  • Today’s decline was largely due to the 2.2% drop in the share price of Bank of Valletta plc to €2.25 as the equity turned ex-dividend. Activity declined to only 17,330 shares across eleven trades. The Bank is now scheduled to hold its Annual General Meeting on 16 December during which shareholders will be asked to approve a number of resolutions including the final gross dividend of €0.0852 per share (net: €0.0554) as well as a 1 for 13 bonus share issue.
  • The worst performer was International Hotel Investments plc as the equity shed 5.9% to the €0.612 level on volumes of 33,418 shares. Last week, IHI announced that it will be issuing a new €40 million bond to finance the early redemption of the outstanding €24.8 million 6.25% IHI bonds and the €14 million 6.5% IHG bonds.
  • The equity of RS2 Software plc also trended in negative territory with a further 2.5% drop back to the €1.55 level on low volumes of 10,000 shares.
  • On the other hand, Malta International Airport plc edged 1% higher to recapture the €4.08 level on shallow volumes of 2,700 shares. Yesterday evening, MIA published an Interim Directors’ Statement updating the market on its performance during the first nine months of the year. The Directors noted that the financial position of the Group has remained sound and the performance during the period under review has been much better than expected. The Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 7.4% to €32.04 million and the Group’s net profit edged 10% higher to €17.07 million which translates into an earnings per share of €0.126 compared to €0.115 in the first nine months of 2015. Going forward, the Directors noted that the start to the winter schedule was promising.
  • Meanwhile, the equity of HSBC Bank Malta plc closed this morning’s session unchanged at €1.85 after recovering from an intra-day low of €1.84 across five deals totalling 21,340 shares.