Daily Market Highlights (23.06.2016)

  • The MSE Share Index closed in positive territory for the fourth consecutive day today as it gained a further 0.43% to a four-week high 4,501.275 points. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index continued to gain ground as it trended higher for the fourth consecutive day to reach a fresh near two-week high of 1,153.612 points (+0.13%). The highlight of the day was the jump in the yield of the benchmark 10-year German Bund which moved from an intra-day low of 0.04% to an intra-day three-week high of 0.116%. This surge was due to growing expectations that the “Remain” camp will secure a victory over the “Leave” camp, thus retaining UK’s membership within the EU. On the other hand, the 10-year yields of the Italian and Spanish government bonds retreated to near two-week lows.
  • Most of today’s trading activity took place in the equity of RS2 Software plc which finished unchanged at the €3.50 level across 51,530 shares having a market value of €0.18 million – representing 72% of today’s total value of equities traded. This morning, RS2 held its Annual General Meeting during which shareholders approved a number of resolutions including those related to the dividend payment, bonus share issue and share split. The shares of RS2 will continue to trade with the entitlement to the share split until 30 June.
  • Besides RS2, three other equites closed the day flat. Malta Properties Company plc failed to hold to its intra-day high of €0.535 as the equity finished at the €0.506 on volumes totalling 10,000 shares.
  • Similarly, Malta International Airport plc (1,823 shares) briefly traded at the €4.22 level before retreating to its five-month low of €4.20, unchanged from yesterday.
  • On the other hand, Bank of Valletta plc managed to rebound from its intra-day low of €2.229 but still closed flat at the €2.24 level across 21,995 shares. Yesterday, BOV issued an announcement confirming that Visa Inc. completed the acquisition of the entire share capital of Visa Europe Limited in which BOV is a Principal member and a shareholder. The Bank’s share of proceeds from this transaction amounts to €29.1 million comprising €22.0 million in cash and a further €7.1 million in Visa Inc. preferred stock. The total consideration will be reflected in the Bank’s financial statements for the financial year ending 30 September 2016. BOV will be retaining the cash consideration within its reserves in order to strengthen its Core Tier 1 regulatory capital.
  • A similar announcement was issued today by HSBC Bank Malta plc. In its statement, the Bank said that it received a cash consideration of €7.6 million (to be recognised as a one-off gain in the 2016 financial statements) and convertible preference shares, together with a deferred cash payment expected to be paid in 2019, amounting to circa €1.4 million. The equity ended the day with a gain of 0.9% at the €1.615 level of thin volumes.
  • Very low trading activity also took place in all the other positive performing equities. MaltaPost plc recaptured the €2.00 level (+11.1%) whilst GO plc gained 0.2% to the €2.905 level. On Tuesday, the Directors of GO expressed an overall positive opinion on the effect of the implementation of the Voluntary Bid on GO given that Tunisie Télécom is expected to continue to support GO’s prevailing strategy which should be enhanced with the synergies to be created with Tunisie Télécom.
  • International Hotel Investments plc climbed 1.5% to a fresh twelve-week high of €0.67. Shareholders as at Monday 27 June will be entitled to a 3 for 100 bonus share.
  • Meanwhile, a single deal of just 1,000 shares pulled the equity of Lombard Bank Malta plc back to the €2.00 level (-1.0%). This morning, Lombard announced that its Board of Directors is scheduled to meet on 25 August to consider and approve the interim financial statements covering the six months ending 30 June 2016.
  • Mapfre Middlesea plc retreated by 0.5% to a six-month low of €2.19 on shallow volumes.

Comments are closed.