HSBC slumps 3.4% to 9-week low

The share price volatility across the large banks persisted today as HSBC Bank Malta plc shed 3.4% to a fresh 9-week low of €1.92 on increased volumes totalling 94,849 shares. This decline in the Bank’s share price offset the marginal 0.5% increase in Bank of Valletta plc’s equity to €2.20 (across 15,295 shares) leading to a 0.6% drop in the value of the MSE Share Index to 3,304.581 points – its lowest level since the beginning of September.

Elsewhere in the local equity market, a single trade of 30,000 Tigné Mall plc shares was executed at the €0.52 level representing a 1% drop from the previous closing price. Meanwhile, 25,000 Malita Investments plc shares traded unchanged at the €0.56 level.

Activity was low in the other active equities with GO plc holding on to its 6-year high of €2.68 across 1,000 shares and Malta International Airport plc maintaining the €2.34 level on a single trade of 2,000 shares.

The only other active equity was 6pm Holdings plc with a single deal of 250 shares executed at the GBP0.72 level.

On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to just below the 1,091 points level as Eurozone yields remained close to the 0.89% level early this morning. However, by this afternoon, the benchmark 10-year German Bund yield slumped to a new all-time low of 0.837% following the announcement that German investor sentiment dropped to a 2-year low as Europe’s largest economy is being adversely affected by the various adverse developments around the globe and the sluggish growth across the 18-nation single currency bloc. Germany slashed its economic growth forecasts this afternoon to 1.2% for 2014 and 1.3% for 2015 when compared with the April forecasts for 1.8% and 2.0% respectively.

Two new bond issues were launched last week. Hal Mann Vella Group plc published a formal notice in connection with the issue of €30 million 5.0% Secured Bonds 2024 and United Finance plc announced the issue of €8.5 million 5.3% Unsecured Bonds 2023. Further information available from www.rizzofarrugia.com

Meanwhile, earlier on today the Treasury announced the issue of 2 new institutional tranches of Malta Government Stocks for a total aggregate amount of €40 million with an over-allotment option of a further €35 million which are only available through an auction process for a minimum of €250,000 per application and in multiples of €50,000. Applications in the form of sealed bids will be accepted until noon on Friday 24 October.