The MSE Equity Price Index opened this shortened week with a gain of 0.59% to 3,587.297 points as the uplifts in the share prices of GO and IHI outweighed the declines in BOV, RS2 and MPC.
Meanwhile, HSBC and MIA closed the day unchanged as overall activity remained subdued. Today’s trading session was characterised by heightened volatility as a number of shares fluctuated notably throughout the day. GO plc ended 1.3% higher at the €3.24 level after recovering from a multi-year low of €3.04 on a total of 7,371 shares.
International Hotel Investments plc opened at €0.472 before surging over 18% to regain the €0.535 level across 4,858 shares. Also among the large companies, Bank of Valletta plc tumbled 4% to the €0.86 level on five deals totalling 8,393 shares. RS2 Software plc opened at a low of €2.10 (-7.1%) before partially rebounding to end the day 2.7% lower at the €2.20 level across 5,200 shares.
The other negative performing equity today was Malta Properties Company plc with a drop of almost 3% back to the €0.50 level on heightened volumes totalling 138,938 shares.
Meanwhile, Malta International Airport plc retained the €4.78 level after opening at a low of €4.70 (-1.7%). A total of 790 shares changed hands. Three deals totalling 1,200 shares left the equity of HSBC Bank Malta plc unchanged at the €0.80 level.
The RF MGS Index continued to move higher as it rallied by 0.21% to a seven-week high of 1,111.208 points. Prices of Malta Government Stocks were boosted by renewed anxiety across international financial markets mostly due to the significant higher number of new COVID-19 cases around the world which are also translating into expectations for the reintroduction of lockdowns.
Furthermore, MGS prices were also supported by the latest political developments in Italy. As a result, the yield on the 20-year Italian government bond tumbled to a new record low of 1.4% compared to over 2% at the start of 2020.
Meanwhile, during his testimony to the US Congress, Federal Reserve Chair Jerome Powell reiterated that the central bank remains “committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible, and to limit lasting damage to the economy”.
Although the Federal Reserve chief acknowledged that the US economy is showing signs of revival, he nonetheless highlighted that “the path ahead continues to be highly uncertain” and that “a full recovery is likely to come only when people are confident that it is safe to reengage in a broad range of activities”. www.rizzofarrugia.com