The share index reversed yesterday’s decline as it advanced by 0.76 per cent to 4,469.040 points, largely on the gains of three of its heavyweights (IHI, MIA and GO) which outweighed the declines in another two large caps - BOV and HSBC.
Trading volumes increased noticeably to just over €570,000 on particularly strong activity in FIMBank and BOV. Week-on-week, the index closed marginally higher after trailing in negative territory for most of the week.
The equity of International Hotel Investments recovered most of yesterday’s 9.3 per cent decline as today it advanced by 8.6 per cent to the 71c9 level on two deals totalling a mere 1,090 shares.
Malta International Airport broke into record territory once again today as it gained 3.3 per cent to the €4.70 level across 10,247 shares. The airport operator is scheduled to publish its full-year results on February 24.
The directors will also consider the recommendation of a final dividend. Last Friday, the company published its January 2016 traffic results showing a 13.2 per cent growth in passenger numbers to a new record of 236,552 passengers.
Among the large companies by market capitalisation, GO added 1.9 per cent to the €3.25 level across 25,143 shares. Yesterday evening, the quad-play telecom operator revealed improved results for its 2015 financial year as its operating profits increased by 27.9 per cent to €27.8 million while profits before tax (after accounting for certain one-off items) amounted to €34.2 million.
The board of directors will be recommending the payment of a final net dividend of 10c per share (2014: 7c per share) to all shareholders as at the close of trading on April 7.
This dividend will be paid on May 13 subject to shareholders’ approval at the upcoming annual general meeting scheduled to be held on May 11. This morning GO also announced that it received a number of non-binding bids from parties interested in acquiring the company’s entire issued share capital.
The other positive performing equities today were RS2 Software and FIMBank. RS2 continued to advance towards its all-time high of €3.35 and added a further 0.3 per cent to the €3.34 level across 16,000 shares. Today’s positive performance is the seventh consecutive for the IT services specialist.
On the other hand, FIMBank closed up by 0.8 per cent to the 61cUS level across strong volumes totalling 236,586 shares for a value of $142,850.
Also in the banking sector, Bank of Valletta and HSBC registered declines. BOV managed to recover from an intra-day low of €2.20 but still finished 0.2 per cent lower at the €2.21,5 level across 75,699 shares.
Negative sentiment towards HSBC persisted as the equity closed at its lowest level since mid-August 2004. The share price declined by a further 2.9 per cent today to €1.63 across 36,500 shares.
The bank is scheduled to publish its 2015 financial statements on February 22. Meanwhile, media reports on Monday confirmed that HSBC reached a deal on a new collective agreement for its employees.
Medserv (12,500 shares) extended yesterday’s decline by 0.1 per cent to the €1.56,4 level after touching an intra-day low of €1.53. Yesterday, Medserv announced that its subsidiary company Medserv (Cyprus) Ltd was not successful in getting the necessary approval to extend the operating licence granted to it to operate out of Larnaca Port.
The company’s current licence expires in August 2016. In the meantime, Medserv (Cyprus) will be transferring its operations to Limassol Port whilst further discussions with interested parties will be held in order to ensure that this development does not hinder Medserv, its clients and the Cypriot economy.
Low volumes left the prices of GlobalCapital (2,380 shares) and Tigné Mall (2,000 shares) intact at the 45c and 97c levels respectively.
On the bond market, the rebound in the RF MGS Index experienced yesterday was short-lived as it dipped by 0.19 per cent today to a new four-week low of 1,134.326 points.
Eurozone bond yields advanced across the board as stock markets took a respite following yesterday’s pronounced sell-off. Indeed, the 10-year benchmark German Bund yield recovered to 0.22 per cent after it touched a low of 0.13 per cent yesterday. Likewise, the corresponding Italian and Spanish sovereign bond yields also moved higher.
This morning, the Treasury announced the issue of two new Malta Government Stocks for a total aggregate amount of €120 million subject to an over-allotment option of up to a further €80 million. The new issues are the 1.5 per cent MGS 2022 (IV) and the 2.5 per cent MGS 2036 (I).
The fixed offer prices will be determined on Thursday afternoon while subscriptions for the public will open on February 22 and close on February 24 (or earlier).
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