MGS prices higher on Greek concerns

Eurozone yields dropped back towards a level of 1.80% this morning following yesterday’s news that Greece will be unable to meet its deficit targets. Inspectors from the IMF, the EU and the European Central Bank were in Athens over the weekend to review the country’s performance and to decide on an additional disbursement of the bailout. The negative news from Greece reignited concerns on the impact of a Greek default on European banks. In line with the drop in benchmark yields, the Central Bank of Malta raised its Malta Government Stock bid prices leading to a 0.4% rise in the Rizzo Farrugia MGS Index to 992.685 points.

The local equity market remains characterised by shallow trading activity with only four equities active during this morning’s session on the Borza. The MSE share Index kicked off the fourth quarter of 2011 with a marginal decline to 3,107.795 points.

In the banking sector, Bank of Valletta plc eased minimally lower to close at the €2.50 level on volumes of almost 8,500 shares. The share price of Lombard Bank Malta plc declined by 2.2% to €2.62 across two trades totalling 2,000 shares. Meanwhile HSBC Bank Malta plc maintained the €2.63 level on just 741 shares.

GO plc was the only other active equity with the share price marginally recovering some of its recent losses as it edged 1.8% higher to regain the €1.14 level across three trades amounting to 3,500 shares.

Tomorrow is the last day for investors to gain entitlement to the recent declared interim dividend by Simonds Farsons Cisk plc amounting to €0.0133 net per share. This dividend will be paid on 21 October. Farsons’ equity last traded on Friday 30 September closing the day at the €1.80 level.