The share index extended yesterday’s gains as it advanced by a further 0.03% to a new near nine-year high of 4,721.355 points.

The gains registered in the equities of GO (+0.6%), MIA (+0.5%) and BOV (+0.2%) minimally outweighed the declines suffered by Malta Properties (-1.9%), RS2 (-1.1%) and Malita Investments (-0.9%).

Meanwhile, five equities closed the day unchanged. Trading volumes in the local equity market remained robust as nearly €0.46 million worth of shares changed hands.

Six deals totalling 8,542 shares pushed the equity of GO to €3.40 (+0.6%) - the highest level in the past eight months.

Also among the large companies, Malta International Airport recaptured the €4.07 level (+0.5%) on trivial volumes whilst Bank of Valletta moved 0.2% higher to the €2.18,4 level across 45,009 shares.

MIA is due to publish its 2016 financial results on February 22. The board of directors will also consider the declaration of a final dividend.

In contrast, RS2 Software slipped by 1.1% to the €1.78 level on volumes totalling 47,005 shares.

Last Friday, the company revealed that it has concluded three major agreements for its managed services arm – RS2 Smart Processing Ltd. The announcement noted that the benefits of these agreements will materialise in the latter part of 2017.

In the property segment, Malta Properties Company lost 1.9% to a fresh four-month low of 53c across 26,975 shares while Malita Investments eased back to the 85c level (-0.9%) on a single deal of 10,000 shares.

Meanwhile, MIDI maintained the 33c level across 45,000 shares.

Four other equities closed flat today. Of these, the most actively traded was HSBC which held on to the €2 level after touching a near three-year high of €2.01.

A total of 47,234 shares changed hands. The bank is expected to reveal its 2016 annual results on February 21. The directors will also consider the declaration of a final dividend to be recommended during the annual general meeting to be held on April 13.

Two deals totalling 10,000 shares left the equity of Medserv unchanged at €1.60.

MaltaPost (31,977 shares) and Simonds Farsons Cisk (4,370 shares) maintained their all-time highs of €2.05 and €7.30 respectively.

Following the sharpest drop in nearly three weeks of 0.42% yesterday, the RF MGS Index continued to suffer heavy losses today as it slumped by a further 0.50% to 1,124.581 points – the lowest since mid-September 2015.

The opening indicative bid prices of the Central Bank of Malta for the two most recently issued longer-dated Malta Government Stocks (MGS) – the 2.4% MGS 2041 issued on August 2016 at 101.75% and the 2.1% MGS 2039 issued on October 2016 at 102.50% - fell to a record low of 99.67% and 96.6% respectively.

Euro zone sovereign yields advanced considerably following comments made by European Central Bank (ECB) executive board member Sabine Lautenschläger who was reported as saying that “all preconditions for a stable rise in inflation exist” in the single currency area.

She also stated that she was “optimistic that we can soon turn to the question of an exit” from the ECB’s ultra-loose monetary policy.

The 10-year benchmark German Bund yield surged above the 0.5% mark – the highest since January 22, 2016 – from 0.451% yesterday before retreating following contrasting comments by ECB governing council member Francois Villeroy de Galhau.

Mr de Galhau claimed that “although quantitative easing will obviously not last forever, we clearly did not discuss tapering or any exit strategy”.

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