Daily Market Highlights (18.10.16)

  • The MSE Share Index registered its best daily performance in nineteen months today as it jumped by 1.43% to a three-month high of 4,498.630 points reflecting the notable gains in the share prices of IHI and HSBC. Furthermore, four other equities performed positively today. The positive investor sentiment is possibly as a result of the various measures announced by the Minister of Finance in the 2017 Budget Speech presented to parliament yesterday. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index moved lower for the first time in the last five days as it retreated by a minimal 0.02% to 1,174.510 points. Today’s decline in the Index mainly reflects the downward adjustment in the opening indicative bid prices quoted by the Central Bank of Malta (CBM) for the 2.50% MGS 2036 (I), which yesterday soared by 364 basis points to an all-time high of 112.91% whilst today it corrected by 253 basis points to 110.05%. Meanwhile, the CBM indicative bid prices for most other stocks moved higher. In fact, the bid prices for five different stocks (including the longest-dated 2.40% 2041 I R) moved to fresh record territories.
  • The best performing equity today was International Hotel Investments plc as it soared by 7.2% to a near three-month high of €0.659 albeit on shallow volumes totalling 6,225 shares.
  • HSBC Bank Malta plc extended its recent run as it advanced by a further 4.1% to the €1.77 level – the highest since late January 2016 – across 33,265 shares. In an interview published in the local financial media last week, HSBC Group General Manager and Head of Commercial Banking Europe Mr Ian Stuart was quoted as saying that HSBC Holdings is “going to push on here in Malta.” Mr Stuart added that “I can go back to London and formulate plans for the next phases of investment in Malta. We are absolutely committed to the island; there are growth opportunities.”
  • Also among the large companies, a single deal of just 800 shares pushed the equity of RS2 Software plc 1.3% higher to the €1.55 level.
  • Low volumes were also traded in Lombard, MaltaPost and Malta Properties. Lombard Bank Malta plc climbed 1.9% to a near three-week high of €2.14 across 1,200 shares. Meanwhile, the Bank’s postal subsidiary, MaltaPost plc, rebounded by 2.7% from yesterday’s three-month low of €1.801 as it recaptured the €1.85 level across 1,704 shares.
  • Malta Properties Company plc moved higher for the first in the last ten trading sessions as it advanced 0.7% to the €0.57 level on shallow volumes.
  • In contrast, the two other property-related companies performed negatively today. Plaza Centres plc lost 2.7% to the €1.10 level across 7,700 shares whilst Malita Investments plc dropped to a fresh 2016 low of €0.85 on heightened activity totalling 79,860 shares.
  • Malta International Airport plc closed minimally lower at the €4.189 level. A total of 2,250 shares changed hands today.
  • Meanwhile, Medserv plc held on to its 2016 low of €1.50 across 8,158 shares.
  • Bank of Valletta plc also finished the day flat at €2.29 on volumes totalling 27,016 shares. The market is now awaiting the publication of BOV’s financial statements for the year ended 30 September 2016 by the end of this month.
  • Two insignificant deals left the equities of FIMBank plc and Grand Harbour Marina plc unchanged at USD0.88 and €0.869 respectively.
  • Following the early closure of the latest issue of Malta Government Stocks due to over-subscription, the market is now waiting for the issuance of the relative allotment policy by the Treasury.