Daily Market Highlights (28.07.2016)

Yesterday’s uplift in the MSE Share Index was short-lived as the Index eased 0.10% lower today to 4,461.652 points. Out of the nine actively traded equities, only FIMBank plc finished higher as it advanced by 1.5% to the USD1.015 across 20,000 shares. In the meantime, four shares closed the day in negative territory whilst another four remained flat. Download a copy of today’s Equity Market Summary.

On the bond market, the RF MGS Index extended yesterday’s decline by a further 0.17% to its lowest level in over one week of 1,155.452 points. The decline contrasted with the movements in the 10-year sovereign yields of both Germany and Italy, which dropped to -0.079% and 1.219% respectively from -0.034% and 1.236% yesterday. On the other hand, the Spanish government 10-year yield edged minimally higher to 1.115%. On the economic front, fresh data showed that consumer prices in the euro zone’s largest economy, Germany, rose by 0.3% in June 2016 year-on-year. Yesterday, the US Federal Reserve held open the prospect of a second increase in interest rates later this year as it said that near-term risks to the US economy had diminished and the job market recovery had regained momentum.

The 1.3% decline in the share price of HSBC Bank Malta plc weighed negatively on the performance of the local equity index today. The equity pulled back to the €1.57 level on volumes totalling 20,741 shares. HSBC will reveal its interim results on Wednesday 3 August.

Also in the retail-banking sector, Lombard Bank Malta plc closed the day minimally lower at the €2.249 level across 3,300 shares. The Board of Directors of Lombard will be meeting on 25 August to consider and approve the Group’s financial statements for the six-month period ended 30 June 2016.

A single deal of just 1,100 shares pulled the equity of MaltaPost plc 1.1% lower to the €1.88 level.

The other negative performing equity today was Malta Properties Company plc which retreated by 0.6% to the €0.507 level across 8,879 shares.

In contrast, MIDI plc held on to the €0.379 level across 10,000 shares. On Tuesday, 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. Refunds of all unallocated monies will be made by Monday 1 August 2016. Trading in the new bonds is expected to commence on Thursday 4 August 2016.

Meanwhile, BOV, GO and RS2 all traded unchanged. Bank of Valletta plc maintained the €2.21 level across 22,400 shares and RS2 Software plc held on to the €2.00 level on weak volumes totalling 5,449 shares. RS2 will reveal its interim results on 11 August.

Likewise, GO plc continued to trade at it sixteen-month low of €2.80 on light volumes totalling 1,379 shares. This morning, GO announced that it was informed by TT ML Limited (a wholly-owned subsidiary of Tunisie Télécom) that it received acceptances totalling 66,281,050 shares – representing approximately 65.4% of the entire issued share capital of GO. The bid of TT ML Limited is still subject to the satisfaction of a number of conditions as set out in the Offer Document dated 14 June 2016. GO will issue further announcements on the status of the said completion conditions as and when appropriate.

Yesterday, International Hotel Investments plc announced its allocation policy in respect of its recent €55 million 4.0% 2026 secured bond offering. IHI received applications for a total of €148,389,400. Applications amounting to €50,379,700 were received from shareholders. The balance of €98,009,700 were subscribed for by the general public. Accordingly, applications submitted by eligible shareholders will be allocated the first €20,000 in full and 27.465% of the remaining balance rounded to the nearest €100. On the other hand, applications submitted by the general public will be allocated the first €1,000 and 20.357% of the remaining balance rounded to the nearest €100. Interest on the new bonds will commence as from tomorrow whilst refunds of unallocated monies will be made by Wednesday 3 August. The bonds are expected to be admitted to listing on Friday 5 August and trading is expected to commence on Monday 8 August.

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 this afternoon. The subscription period for 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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