Daily Market Highlights (19.06.2019)

Several equities trend lower

The MSE Equity Price Index extended yesterday’s decline by a further 0.81% to 4,844.408 points as various share prices ended the day in negative territory whilst only four moved higher. Download today’s Equity Market Summary.

Following yesterday’s decline of 1.6%, Bank of Valletta plc retracted by a further 2.4% to the €1.21 level across 28,000 shares. On Monday, BOV explained that the decision of ING Group to terminate its correspondent banking relationship with BOV must be analysed in the context of recent trends and developments taking place across the European banking sector. BOV also added that it has stepped up its efforts to find alternative USD clearing arrangements and that it is pressing ahead with a transformation programme aimed at lowering its risk profile and strengthening its anti-financial crime structures, systems and policies.

BOV’s insurance associate – Mapfre Middlesea plc – also performed negatively today with a drop of 4.8% to a three-month low of €2.00 on activity totalling 7,972 shares.

HSBC Bank Malta plc continued to trade within a tight range as the equity eased by 0.6% back to the €1.62 level across 17,050 shares.

International Hotel Investments plc erased some of its recent strong gains as it retreated by 2.2% to the €0.90 level albeit on just 5,320 shares. Shareholders as at close of trading on 26 June will be entitled to receive a net dividend of €0.02 per share.

Six deals totalling 3,700 shares forced the equity of Malta International Airport plc to drop by a further 1.4% to the €7.20 level.

BMIT Technologies plc also featured amongst the negative performing equities today as it shed 1.8% to the €0.535 level on light trading activity.

Similarly, Simonds Farsons Cisk plc lost 1% to the €10.40 level on 1,220 shares. The food and beverages company is due to hold its AGM on 24 June.

In the property segment, Tigné Mall plc moved back to its 2019 low of €0.90 on trivial activity. Tomorrow, Tigné Mall will be holding its AGM during which shareholders will be considering the payment of a final net dividend of €0.0131 per share.

In contrast, Malta Properties Company plc regained its 2019 high of €0.64 (+0.8%) on activity totalling 29,004 shares.

Within the same segment, MIDI plc added 1.6% to recapture the €0.64 level across 23,810 shares.

RS2 Software plc erased most of yesterday’s decline as it rebounded by 3% to the €1.39 level across 24,741 shares. Trading in the new shares following the recent 1-for-8 bonus share issue is possible as from tomorrow.

The other positive performing equity today was PG plc with an uplift of 3.8% to the €1.64 level albeit on weak activity.

Meanwhile, GO plc maintained the €4.58 level after retreating from an intra-day high of €4.60 (+0.4%). A total of 5,350 shares changed hands.

Malita Investments plc (3,000 shares) and Trident Estates plc (369 shares) also closed the day unchanged at €0.865 and €1.89 respectively.

The RF MGS Index recorded its sharpest daily uplift in over two years today as it surged by 0.49% to its highest level in several months of 1,138.736 points. Several prices of Malta Government Stocks, including the six longest-dated ones, climbed to fresh record highs as eurozone sovereign yields remained under considerable downward pressure amid signs that the ECB is ready to loosen its monetary policy if economic conditions within the single currency area deteriorate further. In fact, a leading German bank updated its earlier view and is now saying that the ECB may slash interest rates deeper into negative territory in July rather than in Q4 2019. Meanwhile, investors also turned their attention onto the US Federal Reserve as the central bank’s Federal Open Market Committee is due to conclude its two-day monetary policy meeting today amid expectations of fresh monetary support in the coming months.