MGS prices recover; GlobalCapital slides

Today the Central Bank of Malta Stockbroker sharply raised its Malta Government Stock bid prices as the benchmark 10-year Eurozone yield plunged back to the 2.60% level following the confirmation of a financial rescue plan for Ireland and concerns that Europe’s debt crisis will spread to other periphery nations. The bid price of the 5.25% MGS 2030 (I) was raised 50 basis points up to 102.50% compared to the recent issue price of 101.50%. Investors now await the listing of the latest MGS issues held earlier this month and refunds of unallocated monies by the Treasury.

Trading activity in the bond market remained low with the exception of the 6.25% Mediterranean Bank plc 2015 bonds. A total of €525,000 (nominal) changed hands today with the price edging 25 basis points higher to 100.50%.

On the local equity market, the MSE Share Index dropped 0.5% today to 3,505.841 points as HSBC Bank Malta plc slid 1% lower to the €2.95 level across 10,746 shares. Meanwhile Bank of Valletta plc maintained the €3.70 level for the sixth consecutive session on volumes of 17,181 shares.

The biggest mover of the day was GlobalCapital plc. The share price of the financial services company slumped 22.1% to close at an all-time low of €0.997 as the equity was active for the first time since 1 September. Over 10,400 shares traded today. Last week GlobalCapital issued its Interim Directors’ Statement revealing that a marginal overall decline in revenue during the third quarter delayed the Group’s return to profitability. Moreover the Directors confirmed the sale of the shareholding in the Metropolis property development company as well as the replacement of the CEO.

The other most notable development was the volumes of another 50,000 FIMBank plc shares today. The US Dollar denominated equity closed 1.1% lower at US$0.93.

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