Daily Market Highlights (26.07.2016)

  • The MSE Share Index registered its fourth consecutive daily decline today as it slipped by a further 0.11% to a near six-week low of 4,458.671 points. The declines in the share prices of FIMBank, GO and MIA outweighed the gains in the equities of HSBC and MIDI. Trading activity remained on the low side as just over €0.2 million worth of shares changed hands. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index edged higher for the third consecutive day as it gained another 0.05% to a two-week high of 1,159.509 points. Overall, yields of euro zone sovereign bonds declined today. The 10-year benchmark German Bund yield dropped to -0.058% today from -0.016% yesterday. Meanwhile, the price of oil continued to extend its recent losses on renewed over-supply worries. Indeed, the US benchmark West Texas Intermediate slid to its lowest since last April. A lower price of oil makes it more difficult for central banks to achieve inflationary targets.
  • FIMBank plc was the worst performing equity today as it fell back to the USD1.00 level (-1.8%) across 110,000 shares. The trade finance specialist will reveal its interim results on 9 August.
  • Four deals totalling 13,000 shares dragged GO plc 0.7% lower to a fresh sixteen-month low of €2.80. The Company is shortly expected to announce the result of TT ML Limited’s voluntary offer to acquire GO shares.
  • Also among the large companies, Malta International Airport plc retreated by 0.5% to the €4.23 level on light volumes. The Board of Directors of MIA will be meeting on 17 August 2016 to consider and approve the interim financial statements for the half-year ended 30 June 2016. They will also consider the payment of an interim dividend.
  • Meanwhile, RS2 Software plc held on to the €2.00 level also on low trading activity. RS2 is expected to announce its interim financial statements on 11 August 2016.
  • Similarly, Bank of Valletta plc closed flat at the €2.20 level on volumes totalling 23,129 shares.
  • In contrast, HSBC Bank Malta plc gained 0.6% to recapture the €1.59 level across 3,500 shares. The Bank will publish its interim results on 3 August.
  • The other positive performing equity today was MIDI plc which edged 0.5% higher to the €0.379 level across 15,800 shares. Yesterday, MIDI issued two announcements whereby it revealed the date for the publication of its interim results (31 August) and the allocation policy in respect of its recent €50 million 4.0% 2026 secured bond offering. Overall, MIDI received a total of €106,284,600 – representing a bid-to-cover of over two times. Interest on the new bonds will commence as from tomorrow whilst refunds of all unallocated monies will be made by 1 August 2016. Trading in the new bonds is expected to commence on 4 August 2016.
  • Tomorrow, International Hotel Investments plc is expected to reveal its allocation policy in respect of its recent 4.0% €55 million secured bond offering.
  • Prices for the upcoming new Malta Government Stocks – i.e. the 1.5% MGS 2022 (IV) Fungibility Issue and the 2.4% MGS 2041 (I) – 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.

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