Daily Market Highlights (19.07.12)

  • MSE Share Index back into positive territory with a 0.3% rise to 3,072.788 points following increases in the share prices of HSBC and MIA. On the other hand, GO and Plaza traded lower whilst BOV and Lombard ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged minimally higher to 992.581 points despite a marginal recovery in Eurozone yields to just above the 1.20% level. The focus across international markets today was on the Spanish bond auctions for 2-year and 5-year paper which highlighted concerns over the country’s ability to handle its public finances and sovereign debt. The Spanish Treasury sold €1.4 billion in 2-year paper at 5.204% (previous auction at 4.335%) and a further €1.1 billion 5-year notes at euro-era record highs of 6.459%. Following these auctions, Spain’s 10-year benchmark yields surpassed the ‘unsustainable’ 7% level once again.
  • Support for HSBC shares builds up ahead of the Bank’s half-year results publication on 27 July. The Bank’s equity climbed by 2.6% during this morning’s session to close at the €2.75 level, representing a new 11-month high. Over 15,400 HSBC shares changed hands today. Following today’s upturn, the share price of HSBC Malta is 10.9% higher from 1 June when the Bank announced the date of the interim results publication and dividend announcement.
  • Meanwhile BOV failed to hold on to an intra-day high of €2.06 to end this morning’s session unchanged at the €2.05 level. Four trades totalling 5,213 shares executed today with further offers unsatisfied at the closing price.
  • Similarly, Lombard’s share price was unchanged at the €2.18 level on a single trade of 1,000 shares.
  • Following Monday’s 20% jump, the share price of GO dropped by 10% to the €1.08 level across seven trades totalling 77,500 shares. GO has yet to announce the date when it will be announcing its half-year results.
  • MIA shares were active for the first time since the publication of the Group’s half-year results on Tuesday afternoon with the share price rising 0.6% to regain the €1.75 level across three trades totalling 4,800 shares. The half-year results for the six months ended 30 June 2012 revealed a 13% increase in net profit to €4.48 million. The airport operator also announced a revised forecast for the 2012 passenger numbers which are now expected to grow by 1.5% to a new record of 3.56 million passenger movements. The Directors declared a net interim dividend of €0.03 per share (unchanged over last year) to all shareholders as at close of trading on 25 July. Further details on results available here.
  • A single deal of 2,600 Plaza shares was transacted at the €0.578 level representing a 0.2% drop from the previous close. Plaza is due to publish its H1 results on 31 July.
  • 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.