The share index trended higher for the third consecutive trading session today to reach the highest level in two months of 4,578.915 points (+0.38 per cent). The local equity index registered its best weekly performance this year with a rise of 2.2 per cent.
The best performing equity today was RS2 Software. The share price gained 2.9 per cent from the adjusted pre-share split price of €2.10 to a two-month high of €2.16 (equivalent to an unadjusted pre-share split price of €3.60). A total of 31,865 shares changed hands today.
Bank of Valletta recaptured the €2.25 level (+0.2 per cent) on volumes totalling 12,300 shares.
Also in the banking sector, both FIMBank and HSBC registered gains today. FIMBank moved 1.1 per cent higher to a new six-year high of 93cUS on 32,240 shares whilst a single deal of just 452 shares pushed the equity of HSBC back to the €1.61 level (+0.9 per cent). HSBC’s 2016 interim results will be published on August 3.
Medserv moved slightly higher to €1.79,2 across 4,740 shares.
In contrast, two deals totalling 31,775 shares pushed the equity of Lombard Bank 2.7 per cent lower to the €2.14 level. Lombard will reveal its interim results on August 25.
Malta Properties Company eased 0.9 per cent to close the week at the 53c level on light volumes.
In the meantime, three of the large companies traded unchanged today. GO maintained the €2.86 level on 4,444 shares. Eligible GO shareholders have until July 22 to respond to Tunisie Télécom’s voluntary public offer to acquire shares of GO at €2.87 per share.
International Hotel Investments traded again at the 70c level on volumes of only 1,000 shares. This morning, IHI published a prospectus in connection with the issuance of €55 million four per cent secured bonds maturing in 2026.
This bond is mainly earmarked to refinance bank borrowings on the group’s property in Budapest (Hungary) which will subsequently be secured in favour of bondholders. IHI is reserving an amount of €30 million for its shareholders (preferred applicants) as at the close of trading on June 27 while the balance of €25 million is available for subscription by the public.
Malta International Airport held on to the €4.25 level also on low volumes. The company should shortly be announcing its June traffic results.
MIDI also published a Prospectus in connection with the issuance of €50 million four per cent secured bonds maturing in 2026. This bond is primarily being issued to finance the redemption of the €40.8 million seven per cent bonds which will be redeemed on December 15.
The new bonds are mainly reserved for existing holders of the seven per cent bonds denominated both in euro and sterling to whom preference will be given over new investors. Bondholders of the seven per cent £ bonds can transfer their holding into the new four per cent € bonds at a rate of 83p4 per €1.
The RF MGS Index registered its fourth consecutive gain as it advanced by a further 0.32 per cent today to a 15-month high of 1,160.097 points.
Comments made by the governor of the Bank of England warning that it might have to cut rates or embark on more quantitative easing following the UK’s decision to leave EU unleashed a surge in demand for sovereign paper.
In the euro zone, the 10-year benchmark German Bund yield touched an intra-week low of -0.146 per cent today.
In parallel, the 10-year yields of the two largest peripheral countries with similar credit ratings to Malta’s – Italy and Spain –also decline sharply. A number of the longer-dated Malta Government Stocks reached fresh record prices today.
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