Daily Market Highlights (16.06.16)

The MSE Share Index extended the gains of the past two trading sessions as it edged up by 0.25% to a two-week high of 4,460.231 points. Trading activity remained subdued with only €0.16 million worth of shares changed hands today. Download a copy of today’s Equity Market Summary.

On the bond market, the RF MGS Index trended lower for the fourth consecutive day as it declined by a further 0.06% to a fresh near two-week low of 1,148.675 points. Renewed concerns regarding the upcoming risks associated with the Brexit referendum increased the attractiveness for “safe haven” assets. Indeed, the 10-year benchmark German Bund yield registered a new all-time low of -0.035% whilst the yields of the Italian and Spanish counterparts reversed yesterday’s decline as they climbed back to 1.480% (+6 basis points) and 1.605% (+4.4 basis points) respectively. Besides, Switzerland’s 30-year yield has dipped below the 0% for the first time, meaning that almost the entire market for Swiss government debt now trades below zero. Swiss government bonds are also considered to offer safety in times of market turbulence. Yesterday, the US Fed chief Janet Yellen struck a dovish note towards its intentions to raise interest rates in the immediate term.

Just over half of the total value of equities traded today took place in Bank of Valletta plc. The share price gained 0.9% to the €2.235 level across 37,720 shares.

HSBC Bank Malta plc also performed positively today as the equity recaptured the €1.60 level on volumes totalling 10,896 shares. On 3 August HSBC will publish its interim financial results for the period ending 30 June 2016. During the same meeting, the Directors will also consider the declaration of an interim dividend.

Within the same segment, FIMBank plc continued to advance as it reached its highest closing price in over six years of USD0.901 (+0.1%) across 27,000 shares. The equity momentarily even traded at the USD0.91 level – the highest level since mid-October 2009. Last week, the trade finance specialist published an Interim Directors’ Statement whereby it revealed that it registered profits in each of the first five months of 2016 on the back of certain cost control measures. Meanwhile, the Bank also started a process of restructuring its factoring network, which is expected to show positive results in the near future.

A single deal of just 1,598 shares pushed the equity of International Hotel Investments plc up by 0.6% to the €0.635 level. Shareholders as at 27 June will be entitled to a 3 for 100 bonus share.

Negligible trading volume also took place in GO plc. The share price retreated by 0.7% to the €2.85 level. GO shareholders as at close of trading yesterday will be receiving a copy of the Offer Document by 24 June setting out the terms and conditions of Tunisie Télécom’s voluntary offer to acquire all the shares of GO. The acceptance period for eligible GO shareholders to accept this offer starts on 24 June 2016 and ends on 22 July 2016.

Meanwhile, Simonds Farsons Cisk plc closed unchanged at the €6.31 level across 5,675 shares. Farsons will be holding its AGM on 28 June during which, amongst other resolutions, shareholders will be asked to approve the payment of a final dividend (out of tax exempt profits) of €0.0733 per share.

This morning, Mapfre Middlesea plc announced that its Board of Directors is scheduled to meet on 21 July to consider and approve the interim results covering the six months ending 30 June 2016.

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