Daily Market Highlights (17.08.2016)

  • The MSE Share Index erased yesterday’s gains as it slipped by 0.54% to 4,414.806 points today. Much of the decline in the Index was due to the 5.8% slump in the share price of International Hotel Investments plc which retracted to the €0.612 level on volumes totalling 17,266 shares. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index retreated by 0.05% from its sixteen-month high of yesterday to 1,162.676 points today as euro zone sovereign yields lost some of their recent momentum and moved higher from their recent lows. Indeed, the 10-year benchmark German Bund yield advanced to -0.037% today from -0.082% of yesterday. Likewise, the 10-year yields of both Italy and Spain increased.
  • Amongst the large companies, RS2 Software plc failed to hold on to its intra-day high of €1.90 as the equity closed 0.5% lower at the €1.85 level across 15,421 shares. Last 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.
  • Medserv plc declined 1.1% to a two-month low of €1.75 on 16,900 shares. The oil and gas logistics specialist is due to publish its interim results on 26 August.
  • The other negative performing equity today was Malta Properties Company plc which lost 2.9% at €0.51 on trivial volumes.
  • In contrast, a single deal of 3,400 shares lifted the equity of Malta International Airport plc up by 0.2% to the €4.24 level. Early in the afternoon after market closing, MIA revealed its performance for the six-month period ended 30 June 2016. The Company reported an 11.9% growth in net profits to €8.2 million (H1 2015: €7.3 million) on the back of a 9.8% increase in passenger movements to nearly 2.2 million and improved non-aviation revenues. Looking ahead, MIA foresees no major changes in its activities for the remaining six months of the financial year. The Directors declared an unchanged gross interim dividend of €0.0462 (net: €0.03) per share. Shareholders as at the close of trading on Monday 22 August will be entitled to this dividend which will be paid by not later than Friday 16 September 2016.
  • Meanwhile, both Bank of Valletta plc (10,000 shares) and Lombard Bank Malta plc (28,828 shares) finished today’s trading session unchanged as they maintained the €2.219 and €2.20 levels respectively. Lombard is expected to publish its interim results on 25 August.
  • GO plc issued two announcements today. In the first, it revealed that, within the framework its restructuring process of Forgendo Limited, the latter transferred its 50% shareholding in Giradena Limited to GO and EITML on a 50:50 basis. In addition, GO and EITML each acquired a further 25% stake in Giradena, bringing their respective total shareholding to 50%. Thereafter, Giradena transferred its entire shareholding of 4,335,000 shares in Forthnet S.A. to GO and EITML in equal proportions for nil consideration. As a result, GO is now the direct owner of a total of 24,887,737 shares in Forthnet (equivalent to a total direct shareholding in Forthnet of 22.605%).
  • In its second announcement, GO plc replicated a press release issued by Tunisie Telecom announcing that all the conditions in respect of the voluntary bid made by TT ML Limited to acquire shares in GO have now been satisfied.
  • Trading in the newly issued 1.5% MGS 2022 (IV) FI was possible as from today. The CBM bid price for the stock was 107.28%, which is 3 basis points higher than the stock’s issue price of 107.25%.

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