Daily Market Highlights (03.01.12)

  • MSE Share Index kicks off the new year on a positive note with a 0.3% rise to a new 1-month high of 3,103.636 points on the back of increases in the share prices of HSBC and BOV. The only other active equity was Farsons which ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index retreated by 0.2% to 986.678 points as Eurozone yields regained the 1.9% level. This turnaround reflects the renewed investor optimism at the turn of the New Year despite further warnings by the German Chancellor Angela Merkel and French President Nicholas Sarkozy on the challenges that lie ahead with respect to the eurozone’s sovereign debt crisis. Despite the decline in the indicative Malta Government Stock bid prices quoted by the Central Bank of Malta, the price of the 5.20% MGS 2031 advanced to a new high of 103.02%.
  • During this morning’s session, fresh bids lifted BOV’s share price 1.2% higher to €2.53 across fifteen trades totalling just over 16,100 shares. Further offers unsatisfied at the last closing price with highest bids placed at the €2.52 level. BOV’s equity will trade with the entitlement to the bonus share issue until next Monday 9 January 2012.
  • HSBC’s equity also in positive territory in the first session of 2012 with a marginal increase to the €2.58 level Four trades amounting to just over 7,600 shares transacted today with other bids outstanding at the last traded price and lowest offers at the €2.62 level. Recently the Bank announced that its Board of Directors approved a cost savings plan in order to mitigate the expected slowdown in business during 2012. The profit from the sale of the Bank’s card acquiring business for €11 million which was announced earlier this week should offset some of the one-off restructuring costs of circa €10 million.
  • Meanwhile a deal of 2,000 Simonds Farsons Cisk shares was executed at the €1.80 level representing no change from the previous close. This month marks the end of the Group’s financial year with the preliminary results generally published in April.
  • MaltaPost is scheduled to hold its Annual General Meeting on Tuesday 17 January 2012. During the meeting, shareholders will be asked to approve a number of resolutions including the final net dividend of €0.04 per share and the option for shareholders to take up the dividend in new shares at the attribution price of €0.98.