The MSE Equity Price Index erased some of the declines registered in the previous two days as it rebounded by 0.25% to 4,810.860 points on Wednesday.
Two equities – namely MPC and MIA – added almost 3% whilst both RS2 and Farsons ended the day 0.5% higher. Meanwhile, HSBC and GO trended in negative territory whilst a further three companies closed unchanged. Trading volumes in equities remained muted as €0.24 million worth of shares changed hands.
Malta Properties Company plc advanced by 2.9% to the €0.70 level – the highest since late November 2015 – across 55,800 shares.
On Monday, the company published its interim results showing a significantly improved performance on the back of higher revenues as well as lower operating and finance costs.
In their commentary, the directors of MPC gave an overview of the various projects that the company has in its pipeline. Moreover, they also explained that discussions related to the potential acquisition of most of the shareholding in SmartCity (Malta) Ltd are still ongoing and that this potential transaction could be a game changing opportunity for the company which it can tap in view of its sound financial position.
RS2 Software plc regained the €1.95 level (+0.5%) on activity totalling 29,730 shares. The company has not yet announced the date of the publication of the interim financial statements due by the end of August.
Simonds Farsons Cisk plc also edged 0.5% higher to the €9.85 level across 3,949 shares.
The other positive performing equity today was Malta International Airport plc with a gain of 2.7% to the €7.70 level albeit on trivial volumes.
Low trading activity also took place in the equity of HSBC Bank Malta plc which eased by 0.7% back to the €1.49 level. Today, the equity turned ex-div.
GO plc lost 1.3% to the €4.48 level on three deals totalling 4,001 shares while Bank of Valletta plc maintained the €1.06 level across 53,556 shares.
BOV’s insurance associate – Mapfre Middlesea plc – also closed the day flat at the €2.06 level on 9,000 shares.
A single deal of 5,000 shares left the equity of PG plc at the €1.65 level.
The RF MGS Index added to yesterday’s strong gains as it climbed by a further 0.2% to 1,172.751 points – the highest level since the end of October 2016.
Several prices of Malta Government Stocks reached new all-time highs amid a surge in demand for ‘safe-haven’ assets amid further evidence of a deteriorating global economic outlook. Economic data in Europe was, once again, disappointing and included preliminary indications of a contraction in economic activity in Germany. Meanwhile, in the US, the Treasury bond yield curve inverted for the first time since 2007
. Historic data shows that whenever the Treasury yield curve inverts (i.e. the yield on a 10-year US Treasury is less than a 2-year Treasury), a recession is likely.