Daily Market Highlights (29.08.2017)

  • The MSE Share Index extended yesterday’s decline by a further 0.03% to an almost 3-week low of 4,643.316 points as the drops in the share prices of HSBC (-1%) and BOV (-0.1%) slightly outweighed the gains in IHI (+1.7%) and MIA (+0.2%). Trading volumes dropped substantially today to reach a new 2017 low of only €0.05 million. Download a copy of today’s Equity Market Summary.
  • Renewed geo-political tensions on the Korean peninsula forced the euro zone sovereign yields significantly lower with the 10-year and 20-year benchmark German Bund yields touching two-month lows of 0.316% and 0.788%. As a result, the RF MGS Index moved 0.16% higher to a near one-week high of 1,130.695 points. On the economic front, a survey gauging the level of consumer confidence in Germany rose to the highest level in nearly sixteen years. Data in France was also positive with consumer spending rebounding by a better-than-expected 0.7% in July from an upwardly revised -0.7% in the previous month.
  • In the retail banking sector, two deals totalling 7,500 shares forced the equity of HSBC Bank Malta plc 1% lower back to the €1.92 level whilst Bank of Valletta plc eased by a minimal 0.1% to the €2.098 level on trivial volumes.
  • On the other hand, International Hotel Investments plc regained the €0.61 level (+1.7%) on insignificant volumes. Last Thursday, IHI reported a pre-tax loss of €2.3 million for the first half of the current financial year ending 31 December 2017. IHI however noted that the general business outlook for its hotels and catering business remains positive and that its hotel management arm remains very active at growing the business as it expects to conclude other hotel management agreements this year.
  • Also among the large companies by market capitalisation, Malta International Airport plc advanced 0.2% to the €4.17 level across 2,790 shares.
  • Meanwhile, GO plc retained the €3.55 level whilst PG plc held on to its all-time high of €1.40 on two single deals of 3,323 and 2,800 shares respectively.
  • Plaza Centres plc also closed the day unchanged at the €1.04 level across 5,100 shares.
  • Yesterday, MIDI plc published its condensed interim financial statements covering the six-month period ended 30 June 2017. The Group reported a net loss of €1.66 million, reflecting the lack of apartments available for delivery to their respective owners. MIDI explained that the profits made on the sale of the Q2 apartments will be realised in FY2018. Meanwhile, development works on the “The Centre” office block are now approaching completion with commencement of rental operations earmarked for Q4 2017. Following the sale of one whole floor, MIDI noted that all of the remaining floors are now practically rented out. MIDI also made reference to the Manoel Island project and the previous company announcements providing updates in this respect. The equity remained inactive today.