MSE Share Index reaches 4-month high

Daily Stock Market Review – 17 July 2017

The MSE Share Index trended higher for the third consecutive trading session as it added a further 0.28% to a fresh four-month high of 4,733.807 points. However, trading volumes were weak as only €0.14 million worth of shares changed hands.

Just over half of today's trading activity took place in the equity of Malta International Airport plc which maintained the €4.15 level across 18,400 shares. Last week, MIA published the June 2017 traffic results revealing yet another record month with a year-on-year increase of 17.5% in passenger movements to 578,827 passenger movements. During the first six months of 2017, passenger movements increased by 20.9% over the first half of last year. The airport operator is due to reveal its six-month financial performance on 26 July.

Also among the large companies by market capitalisation, Bank of Valletta plc retained the €2.175 level across 4,179 shares. The Bank is scheduled to hold an Extraordinary General Meeting on Thursday 27 July 2017 whereby shareholders will be asked to consider and approve a number of important resolutions regarding the structure of its Board of Directors and the share capital ahead of a €150 million rights issue.

Two deals totalling just 1,000 shares left the equity of Grand Harbour Marina plc unchanged at the €0.895 level.

Low trading activity also took place in a number of other equities. HSBC Bank Malta plc and RS2 Software plc lost 0.8% and 0.1% to €2.051 and €1.839 respectively. HSBC is due to reveal its interim financial results on 31 July.

A single deal of 920 shares pulled the equity of Mapfre Middlesea plc 0.3% lower to the €1.865 level whilst Tigne’ Malta plc retreated 1% to the €0.97 level on 3,600 shares. The insurance specialist is due to reveal its six-month financial performance on 21 July.

On the other hand, Malta Properties Company plc and MIDI plc gained 3.7% and 1.6% to the €0.529 and 0.315 levels respectively, also on light trading volumes.

Similarly, a single deal of just 1,150 shares pushed the equity of Santumas Shareholdings plc 0.5% higher to a new record high of €2.14 whilst PG plc recaptured its all-time high of €1.32 (+1.5%) on 1,100 shares.

International Hotel Investments plc climbed 3.3% to regain the €0.62 level across 36,160 shares whereas GO plc advanced 0.6% to a near five-month high of €3.59 across 3,452 shares.

On the bond market, the RF MGS Index moved higher for the fifth consecutive day as it gained a further 0.04% to a seven-day high of 1,116.854 points. The 10-year and 20-year benchmark German Bund yields rose slightly when compared to last Friday. On the other hand, Spanish yields eased. Ahead of the European Central Bank’s monetary policy meeting to be held next Thursday 20 July, fresh inflationary data in the single currency area for the month of June was in line with expectations. The core consumer price index increased by 1.1% year-on-year.

Edward Rizzo is director of Rizzo, Farrugia & Co (Stockbrokers) Limited

Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results.

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