Daily Market Highlights (27.09.16)

  • The MSE Share Index closed higher for the fourth consecutive trading session as it advanced by a further 0.6% to a three-week high of 4,457.122 points. The positive performance of the Index was mainly spearheaded by Farsons and Malta Properties as both equities registered strong gains. Meanwhile, following the poor trading volumes seen yesterday, trading activity across the equity market surged to €0.85 million – the highest level in eleven weeks. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index registered another seventeen-month high as it advanced by a further 0.04% (the fifth consecutive gain) to 1,175.078 points. Euro zone sovereign yields continued to decline, with the 10-year benchmark German Bund drifting lower into negative territory to -0.128% from -0.097% yesterday. Similarly, the 10-year yield of Italy dropped to 1.167% (from 1.214%) and the Spanish equivalent registered a new record low of 0.889% (from 0.982%). Overall, volatility across equity markets increased amid high volatility in the price of oil and renewed concerns on the European banking sector. Meanwhile, media reports stated that the German Finance Minister Wolfgang Schaeuble called for urgent structural reforms on Tuesday to spur growth to end the era of low interest rates – a day before lawmakers will grill ECB President Mario Draghi about his loose monetary policy.
  • Most of today’s trading activity took place in the equity of Malta International Airport plc, as twelve deals totalling 97,260 shares having a market value of more than €0.41 million (representing 48.6% of the total value of equities traded today) pushed the share price back to the €4.26 level (+0.5%). Meanwhile, Ryanair today launched its 2017 summer schedule and announced that the six new winter routes to Brussels, Catania, Nuremberg, Toulouse, Valencia and Vilnius will be retained all-year round. The new flights will be increasing the airline’s summer schedule by 20%, bringing the total number of routes to 42. Moreover, Ryanair will also be increasing flight frequency to Dublin and East Midland and adding an aircraft to its Malta routes.
  • Strong trading activity was also present in the equity of Tigne’ Mall plc. The share price gained 2.4% to the €1.065 level across 118,000 shares.
  • Within the same segment, Malta Properties Company plc advanced 5.5% to regain its four-month high of €0.56 on volumes totalling 51,200 shares.
  • However, the best performing equity today was Simonds Farsons Cisk plc as it soared 7.9% to a new all-time high of €7.00. The interim financial statements for the six month period ended 31 July 2016 will be published tomorrow. The declaration of an interim dividend would also be considered. This would be paid to all shareholders as at the close of trading on Monday 3 October.
  • GO plc continued to add to its recent recovery as it advanced by a further 0.9% to a new four-month high of €3.20 across 6,954 shares.
  • Also among the large companies, RS2 Software plc managed to recover from an intra-day low of €1.609 (-1.0%) to end the day 1.5% higher at €1.65. A total of 41,600 shares changed hands today.
  • Bank of Valletta plc recaptured the €2.26 level (+0.3%) on volumes totalling 6,024 shares. Yesterday, BOV announced that its forthcoming Annual General Meeting will be held on Friday 16 December 2016.
  • In contrast, HSBC Bank Malta plc slipped 0.6% from its seven-week high of €1.63 to the €1.62 level across 7,510 shares.
  • Also in the banking sector, FIMBank plc retreated to the USD0.90 level (-1.1%) on 68,702 shares.
  • Medserv plc eased minimally lower to the €1.55 level (-0.1%) on volumes of 31,615 shares whilst two deals totalling 40,000 shares pulled Plaza Centres plc down by 1.8% to €1.10.
  • In the meantime, Malita Investments plc held on to the €0.87 level on a single deal of 8,000 shares.