Daily Market Highlights (28.10.16)

  • The MSE Share Index rebounded from yesterday’s decline with a 0.5% jump during this morning’s session to reach a fresh 16-week high of 4,550.729 points as most of the active equities today closed higher. Trading activity fell by almost 10% from yesterday but still represented strong volumes of more than €0.91 million. Over the week, the local equity benchmark only edged 0.1% higher. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index trended lower for the fourth successive session with a further 0.4% drop (the third consecutive decline) to a fresh 2-week low of 1,173.424 points. This movement was in line with the strong rebound across Eurozone yields on the back of growing speculation that the European Central Bank (ECB) is planning to start tapering its stimulus measures as upcoming data on inflation is expected to show improvements. The benchmark 10-year German Bund yield reached an intra-day high of 0.219% for the first time since early May 2016.
  • This afternoon, the Treasury announced that, during the recent Malta Government Stock issues, it received applications from the general public for a value of nearly €187.8 million (nominal). The Treasury will be exercising its over-allotment option and increasing the aggregate amount to €160.0 million. With respect to applications for the 2.1% MGS 2039 (I), which amounted to just below €187.7 million, applications up to €45,000 (nominal) will be met in full. Meanwhile, those applications in excess of €45,000 (nominal) will receive €45,000 (nominal) in full plus an additional 11% of the remaining unallocated balance rounded up to the nearest €100. The Treasury have not yet announced the date when the refunds of unallocated funds will be made.
  • The share price of Bank of Valletta plc edged 0.2% higher today to close at its 9-month high of €2.305 across 38,986 shares and ahead of the Group’s full-year results publication this afternoon. The results revealed that the Group’s pre-tax profits improved by 23.7% to €145.9 million. The main driver behind this growth was the one-off gain registered from the disposal of the Group’s shareholding in VISA Europe. Nonetheless, the Bank also registered improvements in net interest income and net fee and commission income. Moreover, there was a drop in impairment allowances. These were counter balanced by declines in trading profits, fair value movements and dividend received as well as higher operating costs. In fact, excluding the one-off gain, the Group’s pre-tax profit was relatively unchanged at €118.4 million. The Directors recommended a final gross dividend of €0.0852 per share to be paid to all shareholders as at the close of trading on Monday 14 November subject to shareholder approval during the upcoming Annual General Meeting on Friday 16 December. During the meeting shareholders will also be asked to approve a 1 for 13 bonus issue.
  • Elsewhere in the market today, HSBC Bank Malta plc also trended 0.5% higher to recapture the €1.91 level on volumes of 23,437 shares.
  • RS2 Software plc also performed positively as the equity rebounded from a 1-year low €1.395 to regain the €1.50 level representing a 7.1% jump from yesterday’s closing price. The uplift in RS2’s share price came amid strong volumes of 530,644 shares.
  • The only other positive performing equity was Malta International Airport plc with a marginal 0.1% uplift to €4.145 on shallow volumes of 3,580 shares.
  • On the other hand, Malta Properties Company plc eased 1.6% lower back to the €0.61 level on just 2,300 shares.
  • Meanwhile, MIDI plc held on to the €0.325 level on a single trade of 7,000 shares.