Following last Friday’s 0.2% decline, the MSE Share Index this morning moved back into positive territory with a 0.1% increase to 3,063.029 points as GO plc advanced 1.7% and closed at its 2012 high of €1.17. Eight trades totalling 58,000 GO shares were transacted today with lowest offers now placed at the €1.20 level.
A single trade of 1,000 Lombard Bank Malta plc shares lifted the Bank’s equity 1.8% higher to close at the €2.24 level. Meanwhile Bank of Valletta plc and HSBC Bank Malta plc held on to the €2.07 and €2.52 levels respectively also on low volumes.
The only other active equity this morning was Malta International Airport plc which also ended the first session of this week unchanged at the 2012 high of €1.77 level on volumes of 8,650 shares.
Internationally, equity markets opened higher this morning on the back of the Greek election results which confirmed the pro-bailout New Democratic party as the winner giving further hope that Greece will remain in the Eurozone. However, the gains tapered off as the optimism in the markets were offset by an increase in Spain’s debt costs which hit the unsustainable level of 7% thereby prompting fresh speculation over the country’s need for a bailout. Moreover, at the G20 summit which is currently being held in Mexico, European leaders are under pressure from emerging markets to find solutions to the prevailing crisis which has been dragging on for two years. A similar trend was registered in the currency markets with the euro initially surpassing the USD1.27 level.
On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 985.399 points despite this morning’s rise in Eurozone yields following the news of the Greek elections results. However, similar to the trend in international equity and currency markets, eurozone benchmark yields slid from a five-week high of 1.537% back to the 1.38% level by this afternoon.
Locally, today marks the opening of subscriptions for the three new Malta Government Stocks issues, namely: (i) 3.75% MGS 2017 (IV) at 102%; (ii) 4.3% MGS 2022 (II) FI at 100.25% and (iii) 5.1% MGS 2029 (I) at 101%. Subscriptions remain open until Wednesday 20 June for the general public whilst applications by tender for over €100,000 must be submitted by noon on Friday. Further details and copies of the application forms available at https://rizzofarrugia.com/news-events/2012/pricing-of-new-stocks-mgs07/