Daily Market Highlights (21.07.2016)

Following yesterday’s marginal upturn, the MSE Share Index turned again into negative territory today as it slipped 0.26% lower to 4,476.738 points reflecting the declines of various equities. Indeed, out of today’s eight active equities, five closed the day in negative territory, another two remained unchanged whilst only Lombard Bank Malta plc finished higher with a gain of 2.3% to a two-week high of €2.25 across 8,750 shares. Download a copy of today’s Equity Market Summary.


On the bond market, the RF MGS Index erased most of yesterday’s gains as it retreated by 0.10% to 1,156.242 points. The 10-year benchmark German bund yield hit a near four-week high of 0.024% today before easing closer zero. In contrast, the yield of the 10-year Spanish government paper drifted to its lowest level this month, possibly reflecting encouraging economic data. In fact, Spain registered stronger yearly export growth in the first five months of the year than its euro zone partners, including Germany, helping cut the country’s trade deficit by a third.

This afternoon, the European Central Bank (ECB) announced that it kept its main refinancing rate of 0% and its asset purchase programme unchanged as it gauges the impact of Brexit on the economy of the single currency bloc. Nonetheless, during this afternoon’s press conference, the President of the ECB Mr Draghi further added that Brexit does not seem to have had a measurable impact on the eurozone inflation outlook so far.

RS2 Software plc closed today’s session 1.8% lower at the €2.00 level after only partially recovering from a four-month low of €1.96 (-3.8%). A total of 37,263 shares exchanged hands today.

Ahead of the deadline for eligible shareholders to submit their relative Acceptance Form in connection with TT ML Limited’s voluntary offer to acquire GO plc shares, the equity of GO retreated by 1.4% to a fresh fifteen-month low of €2.82 on light volumes totalling 4,360 shares. TT ML’s offer to buy GO shares at the price of €2.87 per share expires tomorrow.

Yet, the worst performing equity today was Medserv plc which dropped back to the €1.80 level (-2.2%) across 10,666 shares. The oil and gas logistics specialist is due to announce its interim results on 26 August.

FIMBank plc minimally retreated from its seven-year high of USD1.02 reached yesterday to the USD1.019 level on 19,900 shares. FIMbank will reveal its interim results on 9 August.

Two deals totalling just 2,200 shares pulled the equity of Malta Properties Company plc 0.6% lower to the €0.507.

Also in the property segment, Malita Investments plc maintained the €0.89 level across 34,500 shares.

Likewise, Bank of Valletta plc held on to the €2.20 level across 8,218 shares.

In a press release, MIDI plc revealed that subscriptions to its €50 million 4% secured bonds offer exceeded €100 million. Similarly, International Hotel Investments plc announced the outcome for its latest bond offer with total applications for the €55 million 4% secured bonds exceeding €148 million. Both companies will be announcing their respective allocation policy in the coming days.

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