The Rizzo Farrugia MGS Index dropped 0.4% today to a 3-month low of 981.449 points reflected the continued recovery in benchmark eurozone yields. After dropping to an all-time low of 1.636% on 23 September, the 10-year German bund yield climbed to a 6-week high of 2.22% this morning reflecting the increased confidence that European leaders are edging closer to ratifying the proposed expansion of the European Financial Stability Fund (EFSF) programme whilst banks will be undergoing a more rigorous stress test.
The decline in the Index reflected the drop in MGS prices with the indicative bid price of the 5.25% MGS 2030 dropping to a low of 100.20% from its recent high of 103.95% (12 September). Despite this, trading in the market continued to take place at a premium to the indicative bid price with trades totalling €16,000 (nom) at 102.31%.
On the equity market, 5 equities traded higher helping the MSE Share Index advance by 0.5% to 3,108.191 points. Most movements were registered in the banking sector with the two Index heavy weights both closing slightly higher. Bank of Valletta plc gained 0.2% to €2.47 with HSBC Bank Malta plc adding 0.4% to €2.65. Meanwhile, Lombard Bank Malta plc’s equity climbed 5.4% to €2.72 on low volumes of only 2,000 shares. The US Dollar denominated equity of FIMBank plc traded for the first time in 2 weeks with the share price closing marginally higher at USD0.748.
GO plc’s share price dropped back to its all-time low of €1.05 this morning but recovered towards the end of the session to close at the €1.10 level. GO has yet to announce its position on the upcoming rights issue by Forthnet.
MaltaPost plc failed to hold on to the €0.99 level as a single trade of 10,000 shares took place today at €0.98. MaltaPost is shortly expected to announce the date of publication of its September 2011 full-year results.