Daily Market Highlights (22.07.2016)

  • The MSE Share Index extended yesterday’s decline by a further 0.24% to 4,465.797 points largely because of the drop in the share price of IHI which outweighed the gains registered in three other large companies – BOV, HSBC and RS2. Week-on-week, the local equity index dropped by 0.70% – the third consecutive weekly decline. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index rebounded by 0.14% to 1,157.911 points. The relatively strong upturn in the bid prices for Malta Government Stocks presumably reflected the notable decline in the 10-year Spanish government yield which dropped to 1.131% from 1.179% yesterday. The 10-year benchmark German Bund yield slipped slightly below zero again to -0.012% from 0.003% yesterday. On the economic front, preliminary data showed that economic activity in the euro zone fell less than expected in July, but still hit a one-and-a-half-year low.
  • This morning, the Treasury unveiled the issuance of two new Malta Government Stocks: the 1.5% MGS 2022 (IV) Fungibility Issue and the 2.4% MGS 2041 (I). The aggregate amount of stocks will be €100 million with an over-allotment option of a further €60 million. Prices will be determined on Thursday 28 July in the afternoon. Applications by retail investors (up to a maximum of €100,000 nominal) will open on Monday 1 August and close on Wednesday 3 August or earlier.
  • International Hotel Investments plc lost nearly €18.0 million in market capitalisation on three deals having a market value of just €3,000. The equity retreated by 4.4% back to the €0.65 level on activity of a mere 4,575 shares. Yesterday, IHI announced the outcome of its latest bond offer for which total applications exceeded €148 million. IHI will be announcing its allocation policy in the coming days.
  • A single deal of 1,000 shares pulled the equity of Simonds Farsons Cisk plc 0.5% lower to the €6.25 level.
  • In the retail-banking sector, both Bank of Valletta plc and HSBC Bank Malta plc performed positively today. BOV recaptured the €2.21 level (+0.5%) across 13,913 shares whilst HSBC advanced by 0.6% to the €1.57 level on activity of 20,625 shares. HSBC will publish its interim results on 3 August.
  • Also among the large companies, RS2 Software plc resurfaced above the €2.00 level with a gain of 0.5% to the €2.01 level on volumes totalling 4,242 shares.
  • Meanwhile, three other equities traded unchanged today. GO plc held on to its fifteen-month low of €2.82 across 6,240 shares. Eligible shareholders had until today to submit their relative Acceptance Form in connection with TT ML Limited’s voluntary offer to acquire GO shares at the price of €2.87 per share. Yesterday, the quad-play telecoms operator issued an announcement listing a number of clarifications with respect to its sales process and the Voluntary Bid offer document dated 14 June 2016. One of the statements made by GO was that Tunisie Telecom confirmed that its financial condition is healthy and with an existing meaningful excess cash position and that the bid for GO is fully funded. Moreover, Tunisie Telecom stated that it has a strong record of profitability and has consistently posted net profits in the past years with significant dividends being paid out to its shareholders.
  • Medserv plc (13,877 shares) and Malta Properties Company plc (4,000 shares) also closed flat today at €1.80 and €0.507 respectively. The oil and gas logistics specialist is due to announce its interim results on 26 August.


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