The share index erased the declines of the last two sessions as it rebounded by one per cent to 4,479.083 points following the continues rise in the equities of RS2 and MIA. Trading volumes advanced to almost €300,000 today.
RS2 Software and Malta International Airport continued to advance into record territory. RS2 climbed 1.6 per cent to the €3.25 level on high volumes totalling 27,600 shares.
On the other hand, the equity of Malta International Airport advanced by another 4.9 per cent to the €4.30 level albeit on low volumes totalling 2,060 shares.
Among the other large caps, the equities of HSBC (26,715 shares) and International Hotel Investments (7,950 shares) each advanced by 2.6 per cent to €1.79,5 and 75c respectively.
Yesterday, HSBC confirmed that, as part of its planned programme aimed at improving its productivity and cost effectiveness, it intends to accept 130 applications for early retirement from its staff members.
The estimated cost of this one-off expenditure (to be provided for in the financial year ended December 31) is approximately €14.7 million. This will enable the bank to reduce annual operating costs by approximately €4.4 million as from 2016.
Also in the banking sector, the equity of Bank of Valletta declined by 0.4 per cent to the €2.35 level across 33,330 shares. Shareholders have until next January 13 to gain entitlement to the one for 12 bonus share issue.
The worst performer of the day was Midi. The equity of the property company shed 4.1 per cent and closed at the 35c level across 13,900 shares.
Medserv also finished lower with a decline of 0.6 per cent to the €1.68 level across 15,450 shares.
The company is currently offering a €30 million bond issue (in USD and/or EUR) and a two for nine rights issue at €1.50 per share.
In addition, the rights not being taken up by the executive directors are available for subscription through an intermediaries offer at €1.50 per share until January 15. All of the funds raised from both the rights issue and the bond issues will be primarily used for the acquisition of the METS Group.
Meanwhile, three equities closed the day unchanged. Malta Properties Company maintained the 55c level across 58,050 shares.
Malita Investments and Simonds Farsons Cisk closed at the 95c and €6 level on insignificant volumes.
On the bond market, the RF MGS Index retreated to 1,137.070 points (-0.38 per cent) as the yield of the benchmark 10-year German Bund advanced from 0.48 per cent yesterday to 0.54 per cent today.
The sharp drop in the prices of euro zone sovereign bonds followed encouraging unemployment data. In fact, unemployment in the euro area fell to 10.5 per cent in November (the lowest since October 2011).
Moreover, across the whole European Union, the jobless rate fell to 9.1 per cent - the lowest rate since July 2009.
Despite a gloomy world economic outlook, it seems that the European Central Bank’s efforts to kick-start the single currency’s economy (through its ultra-loose monetary policy) is, in effect, starting to leave the first positive signs.
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