The share index extended yesterday’s gains as it advanced by a further 0.1% to 4,729.757 points, the highest level in over three months.

This reflected the increases in the share prices of RS2 (+2.2%) and Farsons (+1.7%) which outweighed the drops in PG (-1.5%), HSBC (-0.5%) and BOV (-0.05%). 

Meanwhile, four other shares closed the day unchanged. Trading volumes declined substantially to €0.27 million from €0.65 million yesterday.

RS2 Software registered its 12thconsecutive daily uplift with a further gain of 2.2% to a fresh 2017 high of €1.83 across 59,200 shares.

The equity of Simonds Farsons Cisk advanced by 1.7% to a new all-time high of €7.73 across three deals totalling 2,100 shares.

In the retail banking sector, Bank of Valletta eased minimally lower to the €2.19,9 level across 9,000 shares whilst HSBC slipped back to the €2.07 level (-0.5%) on four deals totalling 5,000 shares.

PG retreated by 1.5% from its record high of €1.32 to the €1.30 level across 15,600 shares.

Meanwhile, Malta International Airport maintained the €4.15 level across 7,050 shares. The airport operator is expected to announce the June traffic results and the updated traffic forecasts for 2017 in the coming days.

In the property segment, Malita Investments (60,500 shares) and Plaza Centres (20,000 shares) also traded unchanged at 74c and €1 respectively. Plaza is due to publish its half-year results on July 19.

A single deal of just 1,000 shares left the equity of Mapfre Middlesea at the €1.86 level. The company is expected to reveal its half-year results on July 21.

On the bond market, the RF MGS Index trended lower for the sixth consecutive day – the longest negative streak in nearly four months – as it dropped by a further 0.19% to a fresh near two-month low of 1,118.888 points.

Eurozone sovereign yields continued to trend higher this morning after minutes of the US Federal Reserve monetary policy meeting held between June 13 and 14 published yesterday showed that some members warned against the dangers of letting the world’s largest economy to overheat as it could create financial stability risks.

This afternoon, euro zone sovereign yields surged even higher following the publication of the minutes of the ECB monetary policy meeting held on June 8 which showed that members of the ECB governing council discussed the possibility of the ECB removing some reference to its easing bias.

Nonetheless, the governing council decided otherwise as “it was necessary to avoid signals that could trigger a premature tightening of financial conditions”.

Earlier on today, ECB chief economist Peter Praet was reported as saying that the ECB needed to be patient and maintain a steady hand to its current monetary policy as inflation is still far below the central bank’s target of close but below two per cent. The 10-year benchmark German Bund yield recorded a near 18-month high of 0.569% today.

Trading in the newly issued 5% Mediterranean Investments Holding 2022 bonds commenced today. The bond rallied by 250 basis points to 102.50% on volumes totalling just over €0.1 million nominal.

www.rizzofarrugia.com

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