Daily Market Highlights (02.07.12)

  • Following last week’s 1% drop, the MSE Share Index eased a further 0.1% during this morning’s session to 3,018.411 points reflecting the minimal declines in BOV and GO. Meanwhile the three other active equities, including HSBC and IHI, ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased 0.1% lower to a 12-week low of 983.879 points in line with the upturn in eurozone yields to the 1.60% level. The turnaround in yields follows the decisions taken by EU leaders at last week’s summit. The region’s leaders agreed to allow the European Stability Mechanism (ESM) to directly bailout banks from next year and intervene directly in bond markets to support troubled member states. Moreover, EU leaders agreed to forego the rescue fund’s seniority status in the hope that banks will be more willing to lend to sovereign states.
  • However, by the afternoon the turnaround was losing steam after Finland and the Netherlands indicated their opposition to these decisions with Finland threatening to block the region’s bailout fund from buying sovereign bonds from the open market. Moreover, various analysts were requesting further information on the decisions taken late last week. Markets are also shifting their focus on the upcoming monetary policy meetings of the European Central Bank and the Bank of England (scheduled to be held on Thursday 5 July) during which both institutions are expected to announce further measures to support economic growth.
  • Initially BOV’s share price advanced to an intra-day high of €2.075 but new offers entered the market pushing the equity back to the €2.05 level representing a 0.5% decline from the previous close. Thirteen trades totalling 15,894 shares were transacted today with other bids unsatisfied at the closing price and lowest offers at the €2.065 level.
  • Meanwhile HSBC traded unchanged at the €2.51 level on a single trade of 3,400 shares. Bids are already placed minimally higher at €2.511 with lowest offers still in the market at the €2.53 level. Last week, HSBC announced that the publication of their half-year results has been moved forward to Friday 27 July.
  • A single trade was also executed in GO with the share price easing by 0.4% to €1.17 across 550 shares. Best bids still in the market at €1.12 with lowest offers at the €1.175 level.
  • Farsons’ share price held on to last week’s 7.5% rise as three deals of just over 1,000 shares were transacted at the equity’s 42-month high of €2.15. Further offers remained unsatisfied at the closing price with highest bids placed at the €2.00 level.
  • The only other active equity, IHI, maintained the €0.85 level across two trades totalling 5,500 shares. Other bids outstanding at the last traded price with lowest offers at the €0.885 level.