Daily Market Highlights (16.07.12)

  • MSE Share Index up 0.7% to 3,061.842 points as GO’s 20% jump offsets the declines registered in the share prices of BOV, Lombard and GlobalCapital. Meanwhile the three other active equities, namely MIA, FIMBank and MaltaPost, ended this morning’s session unchanged. Download a copy of the Equity Market Summary.
  • On the local bond market, the Rizzo Farrugia MGS Index was marginally unchanged at 991.834 points despite a further dip in Eurozone yields to the 1.24% as the demand for the ‘safe-haven’ German bund builds up amid the prevailing sovereign debt crisis. Market attention remains on Italy (downgraded to Baa2 by Moody’s last week) and Spain as their respective borrowing rates continue to rise to unsustainable levels raising doubts on their ability to maintain enough market confidence in order to continue financing their debts through the bond markets.
  • In contrast to last Friday’s 9.9% plunge, GO’s share price today rebounded by 20% as fresh bids entered the market helping the close at a new 10-month high of €1.20 across sixteen trades totalling 109,510 shares. Shareholders of the quad-play telecom operator now await the Group’s decision on whether it will support the €30 million share capital increase proposed by Forthnet. The shareholders of Forthnet will vote on this proposal and other related capital changes during an Extraordinary General Meeting scheduled to be held on 3 August.
  • Meanwhile BOV’s share price failed to hold on to an intra-day high of €2.065 to close at the €2.049 level representing a 0.3% decline from the previous close. A total of 11,248 shares changed hands today across eight trades.
  • Lombard Bank’s shares also closed in negative territory today with a 1% drop to a new 79-month low of €2.179 on low volumes of 750 shares.
  • Similarly, GlobalCapital’s equity retreated by 3.6% to a new 10-month low of €0.80. Only 350 shares changed hands today.
  • No trades were executed in HSBC today as investors remain on the side-lines prior to the Bank’s interim results publication scheduled for 27 July.
  • MIA held on to the €1.75 level on a single deal of 1,230 shares ahead of the 2012 interim results publication scheduled for tomorrow.
  • Single deals also executed in FIMBank and MaltaPost with the equity of the trade finance specialist holding on to the US$0.86 level. The share price of the postal operator continued to trade at the equity’s 21-month low of €0.89 across 358 shares.
  • The subscription period for the new equity issue of Malita Investments plc will open on Monday 23 July. The company is issuing a total of 20,000,000 new ‘B’ shares for general public subscription at the nominal value of €0.50. Malita Investments will have a market capitalisation of €69 million representing a 2.5% weighting in the MSE Share Index. Further details on this IPO available here.