Daily Market Highlights (19.07.2016)

  • Negative sentiment on the local equity market persisted as the MSE Share Index retreated by a further 0.37% to its lowest level in over four weeks of 4,465.562 points – the sixth consecutive decline in as many trading sessions. Furthermore, total trading activity was particularly poor as merely €0.06 million worth of shares changed hands today – the lowest level of daily volumes year-to-date. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index finished higher for the first time in the last six days as it advanced by 0.11% from its three-week low of yesterday to 1,156.124 points today. Euro zone sovereign bond yields broadly traded lower today following the upturn in recent days. The 10-year benchmark German Bund yield touched a low of -0.052% today following a brief move into positive territory. Similarly, the 10-year yields of Italy and Spain also edged lower today. On the economic front, the results of the latest surveys among institutional investors and analysts showed that economic sentiment in Germany decreased sharply in July to the lowest reading since November 2012 largely as a result of the UK’s referendum vote to leave the EU. The same results also showed that sentiment of financial market experts concerning economic development of the euro zone also weakened in July.
  • Today’s drop in the local equity index reflects the declines in the share prices of RS2 Software plc and Bank of Valletta plc. RS2 dropped by 3.8% to a four-month low of €2.02 across 8,301 shares.
  • Likewise, Bank of Valletta plc lost 1.0% to the €2.178 level on volumes totalling 6,725 shares.
  • In contrast, Lombard Bank Malta plc gained 0.5% to the €2.205 level across 1,885 shares. Lombard will publish its 2016 half-yearly results on 25 August.
  • The best performer today was MIDI plc as the share price rebounded by 7.7% to the €0.377 level on 13,200 shares following the 5.4% drop registered yesterday.
  • Also in the property segment, Malta Properties Company plc recaptured the €0.51 level (+0.4%) on light volumes totalling just 2,500 shares.
  • Meanwhile, HSBC Bank Malta plc continued to trade at its twelve-year low of €1.55 with only 5,000 shares changing hands. HSBC will publish its interim results on 3 August.
  • Conversely, GO plc managed to recover from its intra-day low of €2.82 but still ended today’s trading session flat at the €2.86 level. Eligible GO shareholders have until next Friday 22 July to submit their relative Acceptance Form in connection with TT ML Limited’s offer to acquire GO shares at the price of €2.87 per share.
  • Shareholders of International Hotel Investments plc as at the close of trading on 27 June (preferred applicants) had until today to apply for the new €55 million 4.0% secured bonds maturing in 2026. The general public offer opens tomorrow.

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