Daily Market Highlights (29.07.2016)

  • The MSE Share Index advanced by 0.19% to 4,470.277 points today, reflecting the gains registered in the share prices of BOV and HSBC. Meanwhile, only two other equities were active today, with both finishing lower. Once again, trading volumes were very weak. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index posted its third consecutive decline as it dropped by a further 0.05% to 1,154.915 points. Whilst the 10-year yields of Germany and Italy remained largely flat, that of the Spanish government drifted lower to 1.094% from 1.115% yesterday. Fresh data showed that Spain’s unemployment rate fell to 20.0% in the three months to June from 21.0% in the first quarter of the year – beating market expectations of 20.4%. It is the lowest reading since the third quarter of 2010, aided by new jobs created in the services and tourism industries. Spain still has the second highest unemployment rate in the EU after Greece.
  • With today’s upturn, the local equity index posted a weekly gain of 0.10%. Nonetheless, on a monthly basis, the MSE Share Index declined by 2.0%, effectively erasing all the gains in the Index registered in June. Furthermore, the monthly drop for July is the sharpest since September 2014.
  • The most actively traded equity today was Bank of Valletta plc which climbed by 0.5% to the €2.22 level across 11,552 shares.
  • Within the same sector, a single deal of just 2,525 shares lifted the equity of HSBC Bank Malta plc 1.9% higher to regain the €1.60 level. The Bank will reveal its interim results on Wednesday 3 August.
  • In contrast, Malta International Airport plc retreated by 0.7% back to the €4.20 level on 2,000 shares. Recently, MIA upgraded its 2016 year-end traffic results to +7.5% from the original forecast of a 2.4% growth in passenger volumes. MIA’s 2016 interim financial statements will be published on 17 August.
  • GlobalCapital plc traded for the first time in nearly seven weeks and plunged by 29.9% to the €0.35 level on a miniscule deal of just 240 shares. This morning GlobalCapital held its Annual General Meeting.
  • This morning, GO plc announced that, within the framework of its sales process to TT ML Limited, Forgendo Limited (the joint venture company between GO and Emirates International Telecommunications (Malta) Limited [EITML]) transferred its entire shareholding in the Greek telecommunications operator Forthnet S.A. to GO and EITML for a nil consideration. This share transfer was part of the conditions for the successful completion of TT ML’s majority take-over of GO.
  • Refunds of unallocated monies in respect of the recent two new bond issues from MIDI plc and International Hotel Investments plc were affected today.
  • Yesterday, the Treasury unveiled the prices of the two upcoming new Malta Government Stocks. The 1.5% MGS 2022 (IV) FI is being offered at 107.25% (representing a yield to maturity of 0.266% per annum) whilst the price of the longer-dated 2.4% MGS 2041 (I) has been established at 101.75% (giving a yield to maturity of 2.307% per annum). The total aggregate amount available for subscription is €160 million (including a maximum over-allotment option of €60 million). Subscriptions for the General Public open on Monday 1 August and close on Wednesday 3 August, or earlier in the case of over-subscription. Tenders in the form of sealed bids for applications in excess of €100,000 (nominal) will be accepted until noon on Monday 8 August.

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