Daily Market Highlights (29.05.2017)

  • The MSE Share Index kicked-off the week in positive territory as it advanced by 0.49% to an over two-week high of 4,654.001 points. Today’s gains mainly reflect the positive performances of BOV (+1.4%), HSBC (+1%), GO (+0.6%) and MIA (+0.4%) which outweighed the declines in PG (-3%) and RS2 (-0.1%). Trading volumes were weak as only €0.18 million worth of shares changed hands. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index advanced by 0.15% to 1,125.941 points as euro zone sovereign yields declined (bond prices gained) possibly reflecting the publication of some disappointing economic data showing a more-than-expected drop in the money supply within the single currency economy in April as well as a slightly less-than-expected growth in private sector loans. Later in the day, the President of the European Central Bank (ECB) Mario Draghi was quoted as saying that while the euro zone economy is improving, inflation remains subdued, thus requiring the central bank to keep an extraordinarily accommodative monetary policy.
  • In the retail banking sector, Bank of Valletta plc and HSBC Bank Malta plc recaptured the €2.19 level (+1.4%) and €2.00 level (+1%) across 42,319 and 10,450 shares respectively.
  • Also among the large companies by market capitalisation, three deals totalling 3,600 shares lifted the equity of GO plc 0.6% higher to a fresh near three-month high of €3.57.
  • Malta International Airport plc also trended higher today with a gain of 0.4% to the €4.145 level across 4,620 shares.
  • Mapfre Middlesea plc rebounded by 1.5% from its twenty-two-month low of €1.951 to the €1.98 level on two deals totalling 4,680 shares.
  • In the property segment, Malta Properties Company plc advanced by a minimal 0.2% to the €0.511 level on low trading volumes.
  • In contrast, Malita Investments plc retained its two-year low of €0.72 across 9,000 shares.
  • Two deals totalling 7,000 shares left the equity of Medserv plc unchanged at the €1.25 level. The oil and gas logistics specialist is due to hold its Annual General Meeting on Wednesday 31 May.
  • Meanwhile, PG plc dropped 3% to a near three-week low of €1.26 albeit on a single deal of just 5,000 shares.
  • RS2 Software plc eased by 0.1% to the €1.549 level on insignificant volumes. Last Friday, RS2 issued an Interim Directors’ Statement updating the market on its financial performance since the start of 2017. The Company explained that it continued with its strategy of intensively growing its managed services business. Indeed, in addition to the three major agreements concluded last January, RS2 has now also concluded letters of intent and is in an advanced stage of contract negotiations for delivery of managed services to clients in Argentina, Australia, UK and Portugal. The company explained that when these implementations are concluded by the end of 2017, the number of live clients for the managed services business will multiply threefold.