This morning’s trading session on the Borza was once again dominated by the trading activity in Malta Government Stocks. Deals amounted to €2.35 million (nominal) despite a strong correction in prices following the spike during the previous two sessions.
European markets settled down slightly after yesterday’s widespread panic as the general consensus amongst European finance ministers is that although Italy has a high level of debt, its situation is still under control and nowhere near as bad as Portugal, Ireland and Greece. As a result, Eurozone yields recovered from yesterday’s 8-month low of 2.51% to reach the 2.71% level. Nonetheless, European financial markets are still fragile. In fact, Ireland today became the third country, after Greece and Portugal, to have its credit rating cut to junk status.
Back to the local market, high volumes again traded in the 5.25% MGS 2030 (I) reaching over €1.15 million despite a reduction in the Central Bank’s bid price from yesterday’s closing price of 103.12% to 102.51%. Significant rise in trading activity also registered in the 3.75% MGS 2015 (VI) as €1 million (nominal changed hands at the Central Bank’s bid price of 101.24%.
On the equity market, Bank of Valletta plc eased 0.7% lower to €2.68 on very low volumes of 422 shares despite a statement by the Minister of Finance that the BOV Group comfortably passes the EU-wide bank stress tests which will be published later on this week.
Meanwhile HSBC Bank Malta plc rose by 1% to regain the €2.95 level on volumes of 4,359 shares. Also in the financial sector, FIMBank plc eased 0.3% lower to its multi-year low of US$0.77 across 8,237 shares.
GO plc again recovered from an intra-day low of €1.34 to close at €1.36 but still representing a 1.5% drop from the previous close. Three trades totalling 3,200 shares changed hands today.
A further 45,300 RS2 Software plc shares traded at the €0.53 level with lowest offers placed at the €0.54 level.