The MSE Share Index recovered some of yesterday’s losses and rebounded from its lowest level in five-months. The Index added 0.11 per cent today to 4,436.520 points.
Trading activity was spread across ten equities with four share prices registering gains, another four closing unchanged while GO and MPC closed lower. Volumes dropped significantly from the three-month high of yesterday as just €0.21 million worth of shares changed hands.
HSBC Bank Malta plc was the most actively traded equity today. The share price regained the €1.60 level (+0.3 per cent) across 57,778 shares having a market value of €0.09 million – representing 45.0 per cent of the total value of equities traded today. The Bank will publish its interim results on 3 August.
Within the same segment, FIMBank plc advanced by 2.4 per cent to a new six-year high of USD0.87 across 29,289 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.
International Hotel Investments plc also closed in positive territory today with a gain of 0.2 per cent to the €0.631 level across 10,000 shares. After recently announcing the acquisition of a new hotel in Brussels, last week IHI also revealed that its subsidiary company CHI Limited signed an agreement with UAE-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.
A single deal of just 1,225 shares pushed the equity of Simonds Farsons Cisk plc 0.2 per cent higher to the €6.31 level. Farsons will be holding its AGM on 28 June during which, amongst other resolutions, shareholders will be asked to approve the payment of a final dividend (out of tax exempt profits) of €0.0733 per share.
Low trading activity also took place in the equity of Malta Properties Company plc, which shed 5.2 per cent to the €0.51 level.
The other negative performing equity today was GO plc with a decline of 0.3 per cent to the €2.89 level across 4,000 shares. The quad-play telecoms operator today announced that Tunisie Télécom has, through its wholly-owned subsidiary in Malta TT ML Limited, published an offer document setting out the terms and conditions of its voluntary offer to acquire all the shares of GO. A copy of this document will be sent out in printed form by 24 June 2016 to all GO shareholders as at close of trading tomorrow. The acceptance period for eligible GO shareholders to accept Tunisie Télécom’s offer of €2.87 per share starts on 24 June 2016 and ends on 22 July 2016. GO will be issuing an opinion on the Offer Document in the coming days.
Also amongst the large companies, Bank of Valletta plc retained the €2.20 level across 7,610 shares.
Likewise, Lombard Bank Malta plc traded unchanged at the €2.00 level on volumes totalling 8,196 shares.
Lombard’s postal subsidiary, MaltaPost plc, also closed unchanged at its 2016 low of €1.80 across 6,600 shares.
Malita Investments plc traded for the first time in these last six trading sessions. The equity maintained the €0.90 level across 22,000 shares.
On the bond market, the RF MGS Index extended yesterday’s decline by a further 0.14 per cent to 1,150.211 points. The benchmark 10-year German Bund yield slipped into negative territory for the first time ever amid global growth concerns and jitters over the UK’s upcoming referendum on its membership within the EU. The only other sovereign 10-year papers having a negative yield are those of Japan (-0.164 per cent) and Switzerland (-0.482 per cent).
In contrast, the 10-yields of the Italian and Spanish papers advanced by approximately 5 basis points to 1.43 per cent and 1.55 per cent respectively. On the economic front, euro zone industrial production in April grew by a better-than-forecasted 1.1 per cent compared to the same month last year. Furthermore, employment rose by 1.4 per cent in the first three months of the year in both the EU and the euro zone.
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