The MSE Equity Price Index opened the week 0.04% higher at 4,477.903 points as the gains in the share prices of BOV, HSBC, Farsons and MIDI outweighed the declines in Mapfre Middlesea and GlobalCapital. Meanwhile, four other equities closed the day unchanged. Trading volumes remained subdued as a total of €0.18 million worth of shares changed hands.
Bank of Valletta plc regained the €1.81 level (+0.6%) on volumes totalling 41,621 shares.
Within the same sector, HSBC Bank Malta plc advanced by a minimal 0.1% to the €1.861 level across 4,427 shares. This morning, HSBC issued an Interim Directors’ Statement for the period covering 1 July 2017 to 15 November 2017. The bank revealed that it suffered a decline in pre-tax profits when compared to the same period last year.
The decline was broadly in line with management expectations and reflects the prevailing unfavourable low interest rate environment as well as the bank’s prioritisation of risk management actions. HSBC also made reference to an increase in loan impairment charges primarily due to a tightening in the impairment assessment of non-performing home loan exposures that have been delinquent for more than six years.
Overall, HSBC reiterated that its regulatory capital ratios strengthened further and remain above the fully-loaded capital requirements. In this respect, the Bank has now commenced a review to assess how best to deploy this capital moving forward.
MIDI plc and Simonds Farsons Cisk plc climbed 1.5% and 1.6% to €0.33 and €8.90 respectively albeit on trivial volumes.
Low trading activity also took place in the equities of the two insurance companies Mapfre Middlesea plc and GlobalCapital plc. Mapfre Middlesea tumbled 4.4% to €1.816 and GlobalCapital lost 4.8% back to the €0.34 level.
Meanwhile, a single deal of 6,014 shares left the equity of Lombard Bank Malta plc at the €2.20 level.
GO plc retained its 2017 high of €3.60 on seven deals totalling 5,320 shares.
Malta International Airport plc also finished the day unchanged at the €4.62 level after opening slightly higher at €4.625. A total of 8,300 shares traded.
Malita Investments plc held on to the €0.751 level across 25,000 shares.
The RF MGS Index moved higher for the first time in three days as it advanced by 0.15% to 1,124.856 points. Euro zone sovereign yields trended lower today (bond prices gained) amid heightened political uncertainty in Germany. Indeed, Chancellor Angela Merkel failed to persuade the Free Democrats to form a coalition government with her CDU/CSU parties and the Greens. As a result, Mrs Merkel now has to decide whether to go ahead and form a minority government, or else face a fresh round of elections that, however, risks giving the far-right Alternative for Germany party an improved result over the one obtained in last September’s Parliamentary election.