Yields across the Eurozone continued to rally today following yesterday’s press conference by the European Central Bank in which its President Mario Draghi reveal that the Bank’s inflation expectations for 2015 have been raised from zero per cent to 0.3 per cent and stated that bond market volatility is here to stay.
The improved inflation expectations also offset Draghi’s commitment to complete the Bank’s asset purchase programme as originally planned until September 2016 as the region’s growth is faltering.
The sell out in the European bond market lifted the benchmark 10-year Eurozone yield to just below the one per cent level for the first time since late September 2014.
Despite the significant upward movement in eurozone yields, the decline in the indicative prices published by the Central Bank of Malta today seem to not fully reflect international developments and in fact the Rizzo Farrugia MGS Index only retreated by 0.6 per cent to a new three-month low of 1,137.100 points. The longest-dated MGS, the three per cent MGS 2040, only shed 150bp to 110 per cent.
On the equity market, the share index closed in positive territory for the seventh successive session with a rise of a further 1.2 per cent to a fresh seven-year high of 3,990.548 points.
Amongst the positive performers, Bank of Valletta edged a further 0.2 per cent higher to close at the €2.28 level on increased activity totalling 60,244 shares.
Also in the financial sector, Mapfre Middlesea shares extended their recent positive run with a further 6.7 per cent jump to regain the €1.60 level for the first time since October 2009 across four deals totalling 3,935 shares.
International Hotel Investments climbed 6.7 per cent to a fresh 15-month high of 88c across eight deals totalling 43,680 shares. IHI is scheduled to hold its annual general meeting today week.
Similarly, GO advanced by 0.4 per cent to reach yet another seven-year high of €3.09 on volumes of 13,343 shares.
The only other positive performing equity was RS2 Software with a 0.3 per cent increase to a new all-time high of €3.42 across six deals totalling 16,338. RS2 is scheduled to hold its annual general meeting on Tuesday.
On the other hand, Malta International Airport eased 0.4 per cent lower back to the €3.36 level across four deals totalling 7,210 shares. This morning, the airport operator published the May traffic results revealing a 9.9 per cent increase over the same month in 2014 to 441,943 passenger movements.
This represents a record high for the month of May and exceeds the level in August 2011 of 427,575 passengers.
Similarly, the share price of MIDI ended the session minimally lower at 33c after failing to hold on to a new 2015 high of 33c3 across three trades comprising 39,000 shares.
Malita Investments shed 0.5 per cent back to the 95c level on a trade of 20,000 shares.
Meanwhile, HSBC maintained the €1.84 level on volumes of 9,534 shares.
Medserv also ended this morning’s session unchanged at the €2.16 level across 16,500 shares. Likewise, Tigné Mall held on to the 85c level across a single deal of 20,000 shares.
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