Daily Market Highlights (25.07.2017)

  • The MSE Share Index eased by 0.05% to 4,727.870 points as the declines in the share prices of five equities slightly outweighed the gains in seven other shares. Meanwhile, GO, RS2 and Mapfre Middlesea closed the day unchanged. Download a copy of today’s Equity Market Summary.
  • Following yesterday’s slight drop of 0.11%, the RF MGS Index rebounded by 0.1% to 1,125.849 points. Euro zone sovereign yields gained ground today (bond prices fell) as a highly-regarded index gauging the level of confidence among manufacturers, builders, wholesalers and retailers in Germany unexpectedly rose to a fresh all-time high in July, marking the third consecutive record in as many months. Similarly, an index measuring the level of industrial activity in Europe’s second largest economy – France – maintained a six-year high. Data on industrial orders and sales in Italy was also very positive. On the other hand, import prices in Germany registered the slowest rate of increase in the last seven months in June whilst producer prices in Spain rose by the slowest pace since February 2017. Tomorrow, the US Federal Reserve will hold its monetary policy meeting. Bond markets are largely expecting the Fed to keep interest rates unchanged and hint about its views on inflation which has weakened in recent months.
  • The most actively traded equity today was Malta International Airport plc which extended yesterday’s gains by a further 1.2% to the €4.20 level across 23,759 shares. Tomorrow, the airport operator is scheduled to publish its half-year results and provide its updated guidance for 2017.
  • Also among the large companies by market capitalisation, HSBC Bank Malta plc advanced by a minimal 0.1% to the €2.052 level on light volumes totalling 3,000 shares. The Bank is scheduled to reveal its 2016 interim results next Monday 31 July.
  • Within the same sector, four deals totalling 6,000 shares lifted the equity of Lombard Bank Malta plc 2.1% higher to a near eight-week high of €2.39. The bank will publish its interim financial statements on 24 August.
  • Simonds Farsons Cisk plc reached a new record high of €7.76 (+0.1%) across 4,743 shares. Recently, Farsons announced the redemption of the outstanding €15 million 6% bonds and the issuance of €20 million new bonds subject to regulatory approval.
  • In the property segment, MIDI plc advanced by 1.9% to regain the €0.32 level across 35,050 shares.
  • Malita Investments plc (47,083 shares) and Tigne’ Mall plc (14,500 shares) also performed positively with gains of 1.4% and 1% to €0.73 and €0.97 respectively. Tigne’ Mall is due to reveal its six-month financial results on 10 August 2017. The Directors will also consider the payment of an interim dividend.
  • On the other hand, Malta Properties Company plc dropped by 4.7% to the €0.503 level albeit on shallow volumes totalling 2,841 shares.
  • Low trading activity also took place in the equity of MaltaPost plc which lost 2.5% to the €1.98 level on 2,066 shares.
  • Bank of Valletta plc moved back to the €2.16 level (-0.5%) across 20,971 shares whilst a single deal of 39,027 shares pulled the equity of FIMBank plc 0.7% lower to the USD0.73 level. BOV is scheduled to hold an Extraordinary General Meeting on Thursday 27 July 2017 ahead of a €150 million rights issue.
  • The worst performing equity today was Grand Harbour Marina plc as it slumped by 8.4% to an over ten-year low of €0.82 across 10,600 shares.
  • Meanwhile, GO plc (27,135 shares) and RS2 Software plc (4,200 shares) maintained the €3.599 and €1.85 levels respectively.
  • Likewise, Mapfre Middlesea plc closed unchanged as it held on to the €1.87 level across 32,280 shares. Yesterday, the Company published its 2016 half-year results revealing a 24% improvement in pre-tax profits to €7.02 million largely due to a recovery in the Group’s non-life insurance business as well as increased investment income. The Directors did not declare an interim dividend.