Daily Market Highlights (28.06.2016)

Following the declines over the past two trading sessions, the MSE Share Index rebounded by 1.25% to a five-week high of 4,534.629 points on a slight improvement in trading activity. Today’s gains in the local equity index were due to the increases in the share prices of MIA, IHI and RS2, which together outweighed the decline in GO – the only negative performer today. Download a copy of today’s Equity Market Summary.

The RF MGS Index extended yesterday’s rebound as it registered its steepest gain in five months. Indeed, the local Government stocks index advanced by 0.36% to a near twelve-week high of 1,155.322 points. The gain reflected declines in the sovereign yields of the two largest peripheral euro countries – Italy and Spain. On the other hand, the yield of the 10-year benchmark German Bund advanced from a low of -0.117% of yesterday to a high of -0.079% today. Overall, international equities performed positively today following the considerable losses suffered last Friday and yesterday after UK’s decision to leave the EU.

The equity of Malta International Airport plc trended higher for the first time in the last sixteen trading sessions as it recaptured the €4.25 level (+3.7%) across 12,100 shares.

RS2 Software plc climbed by 1.2% to the €3.50 level on volumes totalling 18,370 shares. The cut-off date for the 5 for 3 share split is on Thursday 30 June. Last Thursday, RS2 held its Annual General Meeting (AGM) during which the Group’s Chairman and the CEO gave a detailed overview of the globalisation plans of the Company particularly in the US and Asia-Pacific region.

Also among the large companies, a single deal of just 1,000 pushed the equity of International Hotel Investments plc 4.6% higher from the post-bonus adjusted price of €0.669 to €0.70 (the highest level in over four-months). Last Friday, IHI issued an announcement in which it revealed its intentions of issuing a new €55 million secured bond maturing in 2026. Shareholders as at close of trading yesterday will be given preference to subscribe for the first €30 million of the new bonds.

The best performing equity today was Mapfre Middlesea plc. The share price surged by 9.6% to a ten-week high of €2.40 across 11,200 shares.

In contrast, a miniscule deal of just 714 shares pushed the equity of GO plc 1.0% lower to the €2.85 level. Last week, the Directors of GO expressed an overall positive opinion on the effect of the implementation of the Voluntary Bid by Tunisie Télécom. GO shareholders have until 22 July to accept Tunisie Télécom’s offer of €2.87 per GO share.

Low trading activity also took place in the equities of Medserv plc and Malta Properties Company plc. Both closed flat at €1.79 and €0.51 respectively.

A single deal of 3,540 shares left Simonds Farsons Cisk plc unchanged at the €6.28 level. During the AGM to be held today, shareholders will be asked to consider and approve a number of resolutions including the payment of a final dividend (out of tax-exempt profits) of €0.0733 per share (to be paid on 30 June).

In the banking sector, Bank of Valletta plc (42,425 shares) and FIMBank plc (20,972 shares) maintained the €2.203 and USD0.92 levels respectively. The share price of BOV hit an intra-day high of €2.249. BOV recently revealed that the proceeds from the sale of its shareholding in Visa Europe Limited amounts to €29.1 million, comprising €22.0 million in cash and a further €7.1 million in Visa Inc. preferred stock. BOV will be retaining the cash consideration within its reserves in order to strengthen its Core Tier 1 regulatory capital.

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