Rizzo Farrugia MGS Index reaches new 2011 high

Following last Friday’s 0.4% rise, the Rizzo Farrugia MGS Index today advanced by a further 0.3% to reach a new 2011 high of 995.574 points reflecting the sharp upward revision in the MGS bid prices by the Central Bank of Malta. The increase in MGS prices reflected the significant drop in Eurozone yields this morning to 1.96%. Increased volumes were traded in the MGS market with the 4.25% MGS 2017 issue trading up to an all-time high of 104.71%.

Yields continued to fall this afternoon touching a new all-time low of 1.891% as a ‘flight to quality’ regained momentum internationally on the back of worse-than-expected employment figures in the United States and further economic woes among European countries.

On the other hand, investors continued to shun equities as evidenced by last Friday’s losses of over 2% in the US and similar declines in Asia and Europe this morning. In the UK, the FTSE 100 Index is currently down 2.2% and Germany’s DAX is 3.9% lower.

In Malta, the equity market closed in positive territory today as the MSE Share Index edged 0.5% higher to 3,093.201 points mainly due to a recovery in the share prices of the two large banks. In addition to last week’s 0.4% rise, the share price of Bank of Valletta plc moved a further 0.8% higher during this morning’s session to regain the €2.54 level across six trades totalling over 10,000 shares. Likewise, following last week’s 0.8% rise, HSBC Bank Malta plc climbed another 0.8% higher to close at the €2.69 level on volumes of almost 11,000 shares.

Elsewhere in the local equity market, Malta International Airport plc maintained the €1.52 level across three trades totalling 5,000 shares. Shortly after the close of today’s trading session, MIA published its August traffic results showing a minimal 0.1% decline in passenger movements compared to the record level achieved in August 2010.

The shares of Island Hotels Group (IHG) were active for the first time in six weeks with a mere 100 shares traded at the €0.895 level, representing a 5.3% rise from the previous close.