HSBC’s share price jumps 3.2%

The MSE Share Index climbed 0.7% today to 3,036.163 points on the back of a 3.2% jump in the share price of HSBC Bank Malta plc to a new 4-month high of €2.61 across seven trades totalling 19,500 shares. The gains in the Bank’s equity also lifted the local equity benchmark by 0.5% over the week as HSBC’s shares were the only positive performers with a weekly increase of just under 4%.

On the other hand, Simonds Farsons Cisk plc ranks as the worst performer of the week after a trade amounting to 5,500 shares was transacted during this morning’s session at the €2.00 level reflecting a 7% drop from the equity’s 42-month high of €2.15 reached last week.

After rallying by 40% during the second quarter of the year, GO plc closely follows with a 5.5% weekly drop to €1.11 as support for the equity at the 2012 high faded away. GO’s equity closed in negative territory for the second consecutive week. Similarly, Malta International Airport plc also retreated from its 2012 high this week by 1.6% back to the €1.75 level despite Wednesday’s announcement of a record number of passengers during the first half of the year.

The postal operator slipped below the €0.90 level for the first time since September 2010 to end the first week of July 1.7% lower. The downturn in MaltaPost plc’s equity is probably due to the 54.5% plunge in half-year net profits to €0.5 million mainly due to changes in the tariff structure imposed by the Universal Postal Union.

On the bond market, the Rizzo Farrugia MGS Index edged higher for the fourth consecutive session to 988.364 points (the highest level since mid-June) reflecting the slide in Eurozone yields which dropped below 1.35% – the lowest level since 12 June. Eurozone yields have dropped back by more than 30 basis points from last Friday’s high of 1.691% as the initial euphoria following the decisions taken at the EU summit were offset by escalating concerns over the eurozone’s sovereign debt crisis. In fact, markets were disappointed that the European Central Bank (ECB) failed to announce further stimulus measures apart from the 25 basis point cut in interest rate. Moreover the concurrent GBP50 billion injection by the Bank of England and the second interest rate by the Central Bank of China highlighted the stifling global economic growth.