MIDI shares drop to new all-time low

The share price of MIDI plc slumped 13.8% during this morning’s session to a new all-time low of €0.25 on high volumes of 505,000 shares. Recently, the property developer published its 2012 half-year results revealing a loss of €1.05 million mainly due to the significant decline in revenue given the limited stock of apartments available for sale. The Directors expect this trend to continue in the second half of the year which will lead to an overall loss position for 2012. Construction works will now be focused on the last phases of Tigne Point comprising two residential blocks and a business centre. Further details on the results available at http://rizzofarrugia.com/news-events/2012/interim-results-midi07/

International Hotel Investments plc also closed in negative territory today with a 7.1% drop to a new 4-month low of €0.79 on a single trade of 9,342 shares. Malta International Airport plc’s share price also retreated by 0.3% back to the €1.74 level despite yesterday’s announcement of a new monthly record of 461,153 passenger movements during the month of August. In the first eight months of 2012, MIA registered a 3.7% growth in passengers compared to the revised growth forecast of 1.5% for the whole of 2012.

On the other hand, GO plc edged 2.4% higher to regain the €0.87 level on a deal of 5,000 shares. Similarly, Bank of Valletta plc moved 0.5% higher to reach the €2.21 level across 10,200 shares. Meanwhile HSBC Bank Malta plc held on to the €2.74 level on low volumes of 290 shares.

The other active equity, Plaza Centres plc also closed unchanged at the €0.55 level across four trades totalling 62,600 shares.

On the bond market, the Rizzo Farrugia MGS Index edged 0.2% lower to a new 3-week low of 994.356 points as Eurozone yields surpassed the 1.50% level ahead of today’s European Central Bank (ECB) monetary policy meeting.

This afternoon, the ECB announced that it decided to hold its reference interest rate at the 0.75% level. Moreover, the ECB’s President Mario Draghi announced a new bond buying programme to lower the borrowing costs of ailing countries in the eurozone periphery. Following this announcement, benchmark Eurozone yields continued to rise touching 1.55% for the first time in two weeks. On the other hand, 10-year yields of Italy and Spain eased to 5.4% and 6.1% respectively.

The Bank of England (BOE) also left its benchmark interest rate unchanged at 0.5%. The BOE also decided not to increase its bond buying programme as the UK recession is easing as well as on hopes that the ECB actions will stem the eurozone crisis.