Daily Market Highlights (19.08.2016)

The MSE Share Index extended yesterday’s upturn by a further 0.10% to 4,424.983 points as the gains in the share prices of BOV and GO outweighed the decline in MIDI – the only equity to finish the day lower. Meanwhile, six other equities were active today, with no changes being registered in their respective share prices. Week-on-week, the local equity index lost a minimal 0.03%. Download a copy of today’s Equity Market Summary.

On the bond market, the RF MGS Index extended yesterday’s gains by a further 0.11% and climbed to a fresh sixteen-month high of 1,166.179 points. The indicative bid prices of the Central Bank of Malta for twelve different Malta Government Stocks (including the longer-dated stock issued last February – the 2.5% MGS 2036 I) reached new record highs again today. Furthermore, the CBM bid for the recently issued 1.5% MGS 2022 IV FI r issue reached 107.48% today – i.e. 23 basis points higher than its issue price of 107.25%. Week-on-week, the Index gained 0.37%. The biggest jump in the indicative CBM bid prices took place in the longest listed MGS – i.e. the 3.00% 2040 I – which advanced by 97 basis points to 115.94% from 114.97% last Friday.

Most of today’s trading activity took place in the equity of GO plc which approached a near thirteen-week high of €2.97 (+0.7%) on volumes totalling 25,180 shares. This week, GO issued two announcements advising that, within the framework of its sales process to TT ML Limited, and further to the restructuring process in respect of the shares held in Forthnet S.A., 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%). As a result, all the conditions in respect of the voluntary bid made by TT ML Limited to acquire shares in GO have now been satisfied.

The other positive performing equity today was Bank of Valletta plc as it gained 0.5% to recapture the €2.23 level across 10,221 shares. Yesterday, BOV announced that it acquired the 40% shareholding that Insight Investment Management Limited held in Valletta Fund Management Limited (VFM) for a total consideration of €5 million. As a result, BOV is now the sole shareholder of VFM.

Also in the banking sector, FIMBank, HSBC and Lombard all traded unchanged. FIMBank plc maintained the USD0.98 level across 11,430 shares while Lombard Bank Malta plc also closed flat at the €2.20 level on activity of 20,000 shares. Lombard is due to publish its interim results on 25 August.

A single deal of just 1,000 shares left HSBC Bank Malta plc at the €1.56 level. The recently declared gross interim dividend of €0.071 per share (net: €0.0462) will be paid on 9 September 2016.

Malta International Airport plc maintained the €4.25 level on low volumes of 2,151 shares. Shareholders of MIA as at close of trading on Monday 22 August will be entitled to a gross interim dividend of €0.0462 per share (net: €0.03).

RS2 Software plc closed again at the €1.85 level after hitting an intra-day high of €1.87. A total of 21,099 shares traded.

Medserv plc held on to its twelve-week low of €1.70 across 3,500 shares. The oil and gas logistics specialist is expected to publish its interim results on 26 August. Yesterday Medserv announced that due to unforeseen circumstances the Italian oil major ENI has been prevented from carrying out exploration activities as planned. Notwithstanding this, Medserv continues to operate the base in Portugal and provide related services to ENI.

MIDI plc traded for the first time in the last eight trading sessions and fell by 2.7% to the €0.365 level on two deals totalling 6,000 shares. The Company will reveal its interim results on 31 August.

The 2.4% MGS 2041 should commence trading next week.

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