The MSE Share Index opened this week in negative territory as it slipped by 0.25% to a fresh five-month low of 4,431.749 points.
Today’s decline in the local equity benchmark was largely due to the 2.9% drop in the share price of International Hotel Investments plc back to the €0.63 level across heightened activity. Nearly 1.32 million shares of IHI changed hands today with a market value of €0.83 million – representing 83.3% of the total value traded during this morning’s session.
After recently announcing the acquisition of a new hotel in Brussels, on Tuesday last week IHI also revealed that its subsidiary company CHI Limited signed an agreement with United Arab Emirates-based Meydan Group for the provision of technical services as well as for the management of a luxury beachfront resort under construction in Dubai. Shareholders as at 27 June will be eligible for a 3 for 100 bonus share issue.
Amongst the large companies, HSBC Bank Malta plc closed below the €1.60 mark for the first time in these last four weeks as it ended today’s trading session at the €1.595 level (-0.3%) across shallow volumes totalling 4,510 shares.
A single deal of just 2,000 shares pulled the equity of GlobalCapital plc 0.2% lower to the €0.499 level. On Friday, the Company issued its allocation policy in respect to the recent offer for €10 million 5.0% unsecured bonds maturing in 2021 which were admitted to the Official List today with trading expected to commence on Wednesday 15 June.
Also in the financial services sector, FIMBank plc regained its highest level in over six years as it recaptured the USD0.85 level (+1.2%) across 36,300 shares. Last week, the trade finance specialist published an Interim Directors’ Statement whereby it revealed that it registered profits in each of the first five months of 2016 on the back of certain cost control measures.
Meanwhile, the Bank also started a process of restructuring its factoring network, which is expected to show positive results in the near future. In conclusion, the Board of Directors expressed their satisfaction at the significant improvements made to the Group’s governance framework, particularly in terms of strengthening its governance procedures and risk management practices.
Meanwhile, Lombard Bank Malta plc briefly traded at its lowest level in nearly a year at the €1.95 level (-2.5%) but subsequently recovered to close today’s session unchanged at the €2.00 level. A total of 21,433 shares changed hands today.
Bank of Valletta plc also closed flat as the equity maintained the €2.20 level across 37,646 shares.
Likewise, Malta International Airport plc traded unchanged at the €4.30 level across two deals totalling 1,160 shares. Recently, the airport operator published upbeat traffic results for the month of May. Overall, during the first five months of the year, MIA handled a record of 1.69 million passenger movements – an increase of 10.8% over the corresponding period last year.
On the bond market, the RF MGS Index suffered the biggest drop in the last three weeks as it retreated by 0.17% to 1,151.834 points as the benchmark 10-year German Bund yield rebounded strongly today from last Friday’s all-time low of 0.010% to a high of 0.034% today.
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