The MSE Share Index started the new year on a positive note as it advanced by 0.07% to a fresh near nine-year high of 4,634.077 points today.

Trading was spread across seven equities, with three registering gains whilst BOV and GO closed the day slightly lower. Volumes declined to €0.21 million – the lowest in the last eight trading sessions. 

The most actively traded equity was Bank of Valletta plc which retreated to the €2.25 level across 56,695 shares – representing 60% of the total value of equites traded today. The equity will continue trading with the entitlement to the 1 for 13 bonus issue until 12 January 2017. 

GO plc declined 0.3% to the €3.26 level on trivial volumes. 

Also among the large companies, positive sentiment towards RS2 Software plc persisted as the equity advanced by a further 1.0% to the €1.839 level on volumes totalling 23,638 shares. 

Grand Harbour Marina plc traded for the first time in two months, with the equity jumping 3.7% to a ten-month high of €0.901 across 7,200 shares. 

A single deal of just 4,000 shares lifted the equity of Malta Properties Company plc 0.8% higher to the €0.595 level. 

Meanwhile, Malta International Airport plc continued to trade within a tight range and maintained the €4.05 level across 6,024 shares whilst MIDI plc held on to its four-month high of €0.351 on volumes totalling 15,000 shares. 

On the bond market, the RF MGS Index started the year on a negative note as it extended last Friday’s drop by a further 0.30% to a near two-week low of 1,150.371 points. The 10-year benchmark German Bund yesterday hit a low of 0.152% (the lowest since Mr Donald Trump won the US Presidency), but surged to an intra-day high of 0.264% today.

The strong upturn in yields materialised after preliminary estimates pointed to a strong pick-up in German inflation during the month of December. The inflation data from five federal states showed that prices had increased by at least 1.7% year-on-year at the end of 2016 – the highest level in more than three years and close to the European Central Bank's inflation target of close but below the 2% mark. Meanwhile, the price of oil continued to recover, further strengthening inflationary expectations. 

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