Following the worst daily performance in nearly five weeks yesterday, the Malta Stock Exchange Share Index dropped by a further 0.3 per cent to 4,424.728 points. Trading was limited to six shares only - four finished lower, Malta Properties remained unchanged whilst HSBC advanced marginally.
The most actively traded equity today was Plaza Centres plc as 51,500 shares (representing 46.1 per cent of the total value of equities traded) changed hands. The equity shed 0.9 per cent to the €1.13 level.
Grand Harbour Marina plc traded for the first time in the last twenty-five trading sessions. The equity retreated by 0.1 per cent to €0.869 on light volumes.
In the banking sector, FIMBank plc shed 2.2 per cent to close at its lowest level in four months of USD0.88 level on activity of 15,000 shares.
Bank of Valletta plc eased 1.1 per cent to the €2.265 level across 5,112 shares. BOV’s financial statements as at 30 September 2016 will be published by the end of October.
In contrast, HSBC Bank Malta plc recovered some of yesterday’s decline as it rebounded by 0.6 per cent and recaptured the €1.65 level. A total of 22,500 shares changed hands today.
Meanwhile, Malta Properties Company plc maintained the €0.59 level across 9,116 shares. Last week, MPC revealed that it entered into a tripartite Memorandum of Understanding regarding a proposed development at the St. George’s Exchange site in St Julian’s which is currently held on lease by GO.
On the bond market, yesterday’s rebound in the RF MGS Index was short-lived as the index eased by 0.09 per cent today to a three-week low of 1,167.097 points. Euro zone sovereign bond yields continued to extend their recent gains amid renewed uncertainty over the intention of the European Central Bank (ECB) in respect of its quantitative easing programme. International financial media reports quoted ECB policymaker and Bank of Italy Governor Mr Ignazio Visco as saying that the ECB's exit from its bond-buying program is largely dependent on economic data. Last week's minutes of the ECB meeting held in early September showed that policymakers agreed that the euro zone economy needs continued monetary stimulus as underlying price growth showed no sign of a strong recovery. The benchmark 10-year German Bund yield advanced to 0.049 per cent from 0.032 per cent yesterday. Meanwhile, the 10-year Italian yield hit a 15-week high of 1.407 per cent today (from 1.387 per cent yesterday).
The indicative bid price quoted by the Central Bank of Malta in the recently issued 1.50 per cent MGS 2022 IV FI r dropped to a new all-time low of 106.74 per cent today, which is 51 basis points below the issue price of 107.25 per cent in early August.
Last Friday, the Treasury announced the issue of 2 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €60 million. The 2 new issues are the 1.50 per cent MGS 2022 (IV) FI and the 2.10 per cent MGS 2039 (I). The issue prices of both securities will be determined on Thursday 13 October 2016 in the afternoon. Subscriptions open next Monday 17 October.
This article was provided by Rizzo Farrugia investment consultants.