Daily Market Highlights (27.12.16)

  • Trading on the Malta Stock Exchange resumed today following Christmas festivities and the MSE Share Index advanced by 0.41% to 4,620.015 points – the highest level since mid-April 2008 – largely reflecting the jump in the share price of RS2 (+4.2%) as well as the gains in BOV (+0.7%) and GO (+0.2%). On the other hand, the equity of MaltaPost plc turned ex-dividend and slipped by 1.0% to the €2.03 level whilst International Hotel Investments plc eased by 0.2% to €0.649. Trading volumes in both MaltaPost and IHI were weak. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index remained virtually unchanged at 1,153.031 points as the declines in the opening indicative bid prices of the Central Bank of Malta for short and medium-term Malta Government Stocks (MGSs) were offset by the gains at the longer-term end of the yield curve. Meanwhile, the spread between the 10-year benchmark German Bund yield and the corresponding yields on Italian and Spanish sovereign papers widened as the Bund fell to a near one-month low of 0.189% (from 0.252% last Friday) whilst the 10-year Italian and Spanish yields advanced (bond prices fell) to an intra-day high of 1.865% and 1.503% respectively. The widened spread in the yields of the two largest peripheral countries could possibly be as a result of the latest developments in the Italian banking sector where Italy’s third largest lender (and the world’s oldest bank) – Banco Monte dei Paschi di Siena – has a total capital shortfall of €8.8 billion instead of €5.0 billion as previously estimated.
  • RS2 Software plc climbed by 4.2% to a near four-month high of €1.793 across two deals totalling 11,100 shares.
  • Also among the large companies, Bank of Valletta plc erased most of last Friday’s decline as it rebounded by 0.7% to €2.266 across 37,218 shares. The equity will continue trading with the entitlement to the 1 for 13 bonus issue until 12 January 2017.
  • GO plc rose 0.2% to a new seven-month high of €3.285 on volumes totalling 16,700 shares.
  • The other positive performing equity today was Medserv plc which advanced by a minimal 0.1% to the €1.60 level across 6,250 shares.
  • Meanwhile, four equities traded unchanged today. In the retail banking segment, HSBC Bank Malta plc (24,100 shares) and Lombard Bank Malta plc (2,800 shares) held on to their recent gains as they closed the day flat at €1.91 and €2.29 respectively.
  • Malta International Airport plc maintained the €4.05 level across 3,000 shares. Last week, the airport operator issued a press release to announce that it has reached the 5 million passenger movement mark which is a new record for MIA.
  • A single deal of just 4,000 shares left the equity of Malita Investments plc at the €0.859 level.