Daily Market Highlights (16.08.2016)

  • The MSE Share Index kicked-off this shortened week on a positive note as it edged up by 0.28% to 4,438.659 points. Activity was spread across eight equities, with six of them closing higher whilst only HSBC and Lombard registered declines. Trading volumes advanced to a four-week high of €0.29 million, largely reflecting heightened activity in the equity of Lombard Bank Malta plc which slipped back to the €2.20 level (-2.2%) across 54,750 shares. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index reached a new sixteen-month high of 1,163.230 points (+0.11%) today as the indicative bid prices of the Central Bank of Malta for nine longer-dated Malta Government Stocks (including the 2.5% 2036 I issued last February) reached fresh highs once again today. In contrast, the 10-year yields of the benchmark German Bund as well as those of Italy and Spain were marginally higher this morning when compared to last Friday. On the economic front, a survey amongst institutional investors and analysts showed that sentiment in Germany improved less than expected in August after having hit a four-year low in the previous month. Overall, the survey showed that expectations were somewhat recovering after the UK’s decision to leave the EU, though there was still uncertainty surrounding the resilience of the EU’s banking sector.
  • Also in the retail banking segment, HSBC Bank Malta plc dropped by a minimal 0.1% to the €1.56 level on volumes totalling 4,275 shares.
  • In contrast, Bank of Valletta plc advanced by 0.9% to the €2.219 level across 12,358 shares.
  • The best performing equity today was GO plc which moved 1.0% higher to its twelve-week high of €2.95 across 13,700 shares. Last Tuesday, the quad-play telecoms operator revealed its interim results showing a 31.3% uplift in pre-tax profits to €17.1 million.
  • Three equities posted a gain of 0.5% each today. These were RS2, Mapfre Middlesea and Malita Investments.
  • RS2 Software plc recovered from an intra-day low of €1.84 to close at the €1.86 level across 37,238 shares. On Thursday, RS2 published its interim results showing a 46.8% reduction in post-tax profits attributable to shareholders of €2.5 million. The results were particularly impacted by adverse foreign exchange movements and a surge in the cost base in support of the planned international growth. RS2 explained that the Company’s business continues to be on a strong growth trajectory with a good pipeline of opportunities across all markets and business lines.
  • Mapfre Middlesea plc regained the €2.06 level on a single deal of 1,000 shares. Likewise, Malita Investments plc edged up to the €0.855 level on a deal of 6,000 shares. Malita’s recently declared interim gross dividend of €0.0128 per share (net: €0.00832) will be paid on 9 September.
  • The other actively traded equity today was Malta International Airport plc which edged up by 0.2% to the €4.23 level on volumes totalling 3,245 shares. The airport operator is scheduled to publish its 2016 interim results tomorrow.

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