The MSE Share Index edged lower for the first time in the last five trading sessions as it slipped by a minimal 0.04% today to 4,461.060 points, largely reflecting the decline in the share price of RS2 which outweighed the gains in the two other large companies MIA and BOV.
RS2 Software plc dropped to a new 2016 low of €1.75 (-1.7%) across 29,575 shares.
The other negative performing equity was Malta Properties Company plc which retreated back to the €0.52 level (-3.7%) on a single deal of 14,000 shares. Last Monday, MPC published its interim results showing an improved pre-tax profit figure of €0.93 million when compared to €0.66 million in H1 2015.
On the other hand, Malta International Airport plc gained 0.9% to climb to the €4.28 level on volumes totalling 10,054 shares. The recently gross interim dividend of €0.0462 (net: €0.03) per share is due to be paid by not later than Friday 16 September 2016.
Bank of Valletta plc managed to break the €2.25 level as it inched up by 0.2% to €2.255 across 35,730 shares.
GO plc edged minimally higher to close at €3.101 on miniscule volumes.
Similarly, Medserv plc gained 0.1% to close at the €1.501 level across eight deals totalling 42,759 shares.
Meanwhile, HSBC Bank Malta plc maintained the €1.60 level across 4,170 shares. The Bank is scheduled to pay the recently declared gross interim dividend of €0.071 per share (net: €0.0462) on Friday 9 September.
On the bond market, the RF MGS Index rebounded by 0.12% to 1,168.012 points. Volatility in euro zone sovereign bond markets was relatively subdued today with the 10-year benchmark German bund yield remaining virtually unchanged at -0.056%.
On the other hand, the yield of the 10-year Italy government bond advanced slightly to 1.181% whilst the Spanish counterpart drifted marginally lower to 1.04%. This morning, the credit ratings agency Moody's said that the prolonged political deadlock in Spain would be negative for the country's credit rating as the continued absence of a government undermines the country's ability to meet its fiscal targets and address structural weaknesses in its public finances.
This occurred after acting Prime Minister Mr Mariano Rajoy failed for a second time on Friday to win parliament's backing to form a government, increasing the likelihood the country will have to hold another election – the third in less than a year’s time.
Trading in Malta Government Stocks continued to be dominated by the activity in the newly issued 2.4% MGS 2041 (I), which edged higher to 106.50% after touching an intra-day new high of 106.75% on volumes of €0.65 million nominal – representing 41.3% of the nominal value of MGSs traded today.
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