In contrast to the slowdown in trading activity across local equities during the past few trading sessions, volumes rebounded today with €0.74 million worth of shares changing hands as the MSE Equity Price Index added 0.3% to reach a new 2-week high of 4,659.113 points. Six equities, including IHI, GO and Farsons, trended higher today whilst another three equities drifted lower.

Over the past four sessions, the MSE Equity Price Index edged 0.15% higher largely due to the weekly uplifts in BOV, MIA and Farsons.

During today’s session GO plc edged 0.8% higher to €3.599 across two deals totalling 4,000 shares.

International Hotel Investments plc also performed positively with a 0.2% to regain the €0.601 level on a single trade of 36,605 shares.

Simonds Farsons Cisk plc hit a new all-time high of €8.50 representing a 3% increase over the previous closing price albeit on insignificant volumes of 130 shares. The interim financial statements of Farsons will be published on September 27.

In the property segment, Malta Properties Company plc shares jumped 3.9% to recapture the €0.53 level although on very weak volumes of 527 shares. Meanwhile, there was heightened activity in Santumas Shareholding plc as the equity moved 2.3% higher to €2.19 on volumes of 183,812 shares, representing over 4% of the total issued share capital.

The only other positive performing equity was Mapfre Middlesea plc with a 3.3% jump to the €1.88 level on shallow volumes of 1,300 shares.

On the other hand, the share price of FIMBank plc retreated by 1.3% back to the $0.75 level on strong volumes of 300,000 shares.

Malta International Airport plc also drifted lower with a 0.2% decline back to €4.21 across six trades totalling 15,900 shares. Earlier this afternoon, MIA published its August traffic results revealing a 14.8% increase in passenger movements compared to August 2016 to a new monthly record of 693,537 movements.

The only other negative performing equity was RS2 Software plc with a 0.3% drop back to the €1.775 level on a single deal of 5,500 shares.

Meanwhile, Bank of Valletta plc recovered from an intra-day low of €2.09 to end today’s unchanged at the €2.10 level across 7,796 shares.

Also, PG plc continued to trade at the equity’s all-time high of €1.40 albeit on a small deal of 945 shares.

Likewise, Plaza Centres plc closed today’s session unchanged at the €1.05 level as a further 15,687 shares changed hands.

The RF MGS Index erased most of yesterday’s uplift with a 0.3% drop back to 1,127.356 points as the benchmark 10-year eurozone yield rebounded this morning to regain the 0.36% level.

This afternoon, the European Central Bank (ECB) announced that it kept its benchmark interest rate unchanged and that it will continue with its asset purchase programme of €60 billion per month until December 2017 or beyond if necessary. In the traditional press conference following the Governing Council meeting, the President of the ECB Mario Draghi explained that although the eurozone economy is improving, inflation is still lagging and the volatility in the euro exchange is a cause for uncertainty which requires monitoring.

As such, the ECB revised its growth forecasts upwards but marginally reduced its inflation expectations mainly due to the recent strengthening of the euro. During the press conference, Mr Draghi also explained that in autumn (probably during the October 26 meeting) the ECB will decide on the future plan for its asset purchase programme which comes to an end in December 2017. Eurozone yields declined sharply following the press conference.

www.rizzofarrugia.com

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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