Equity market up on weak volumes as European markets hit 5-month high

While European equity markets touched their highest levels since last April with bank stocks across the world rallying follow details of the Basel III banking capital rules as well as on renewed economic optimism following a jump in Chinese industrial output, the local equity market continued to be characterised by weak volumes.

Despite the low trading activity in Malta, the MSE Share Index closed 0.5% higher to 3,403.768 points on positive performances by Bank of Valletta plc, International Hotel Investments plc and FIMBank plc.

BOV’s share price edged 0.9% higher to €3.23 on low volumes of 1,834 shares with IHI up 1.2% higher to regain the €0.84 level across two trades amounting to 30,000 shares. Moreover, FIMBank’s US Dollar denominated equity jumped 3.1% to the US$1.00 level on volumes of only 1,600 shares.

Marginal activity also took place in HSBC Bank Malta plc with a single trade of only 345 shares transacted at the €2.84 level – unchanged from the previous close.

Meanwhile Malta Government Stock prices registered heavy declines for the second consecutive session as the benchmark 10-year Eurozone yield surpassed the 2.40% level. Although no trading activity took place in the 20-year bond, the indicative bid price by the Central Bank of Malta stockbroker this morning ion the 5.25% MGS 2030 of 102.48% is 66 basis points below last Friday’s level and significantly lower than the 104.66% high registered on 31 August.

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