Ninth consecutive day of declines for MGS prices

The Rizzo Farrugia MGS Index closed lower for the ninth consecutive day as yields in the eurozone continued to rise on increased concerns with respect to the sustainability of Eurozone sovereign debt. The MGS Index declined by 0.7% this week to a 12-month low of 983.789 points – significantly lower than the high of 1,020.209 points registered on 31 August 2010. Various international commentators have this week aired their views that the Eurozone periphery nations will not be able to meet their commitments in the long-run. These analysts are suggesting that such countries ought to restructure their debt immediately as postponing this would only lead to a higher bill for the Eurozone.

On the local equity market, after three sessions of declines, the MSE Share Index closed in positive territory but still ended the week 0.9% lower at 3,835.206 points.

The share prices of the two large banks closed this morning’s session in opposite directions. HSBC Bank Malta plc edged 0.1% higher to €3.405 across 25,670 shares but still registered a 2.7% weekly drop while Bank of Valletta plc eased a further 0.2% lower to the €3.135 level, representing a 0.5% weekly decline.

Malta International Airport plc climbed another 2.9% to reach another multi-year high of €1.75. A single trade of 1,000 shares executed today with further offers unsatisfied at the closing price and outstanding bids at the €1.73 level. Earlier this week MIA published the 2010 traffic results revealing a 12.8% growth in passengers to a record 3.29 million outperforming the Company’s forecast of +8%. The news spurred interest in MIA shares which rank as the best performing equity this week with a 4.8% rise during the last five sessions.

The other active equities today, namely International Hotel Investments plc and MaltaPost plc, closed unchanged. IHI recovered from an intra-day low of €0.95 to regain the €0.98 level across 13,554 shares. The equity of the postal operator remained well supported at €1.00 as over 60,000 shares changed hands at this level this morning.

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