Daily Market Highlights (03.02.12)

  • MSE Share Index posts slight gains for the second successive day on the back of increases in the share prices of HSBC and MIA. Meanwhile MaltaPost slipped 3% lower. The other four active equities, including BOV, closed unchanged. Download a copy of the Equity Market Summary. Despite the recovery in the last two sessions, the local equity benchmark ended the week 0.3% lower due to the declines in the share prices of BOV, GO, FIMBank, Lombard, Middlesea and MaltaPost. On the other hand, the only positive performing equities during the week were HSBC, MIA and Farsons.
  • On the bond market, the Rizzo Farrugia MGS Index moved higher for the seventh consecutive day with another marginal increase to yet another new 2012 high of 990.293 points reflecting this morning’s marginal decline in the benchmark Eurozone yields. This afternoon marks the closing of subscriptions for the retail applications with respect to the new Malta Government Stock issues. Meanwhile applications for over €100,000 in the form of tenders will be accepted until noon next Tuesday. A total of €300 million is on offer across the following stocks: (i) 4.25% MGS 2017 (III) (Fungibility Issue) at 103.75%; (ii) 4.3% MGS 2022 (II) at 100% (par) and (iii) 5.2% MGS 2031 (I) (Fungibility Issue) at 101.75%. Further details and copies of the application forms are available here.
  • HSBC again in positive territory with a 0.4% rise to €2.57 after recovering from an intra-day low of €2.54 across two trades amounting to 1,940 shares. Best bids now in the market at €2.532 with lowest offers at €2.575. The Bank’s equity ended the week 0.4% higher ahead of the full-year results publication scheduled for 24 February.
  • MIA edged another 0.6% higher to regain the €1.75 level on a single trade of 1,000 shares. The airport operator’s equity ranked as the second best performing equity this week with a weekly rise of 0.6% despite the forecasted 2.8% drop in passenger movements during 2012 to 3.4 million announced late last week. The decline in passenger traffic is based on the expected decline in demand for travel and the reduction in cruise liner calls. These will offset the new routes to be introduced by Air France and Ryanair. Nonetheless, the Company’s 2012 forecast is still 3% higher than the previous record registered in 2010.
  • Meanwhile BOV failed to recover this week’s earlier declines as the equity ended today’s session unchanged at the €2.21 level representing a 1.8% weekly drop. Almost 20,000 shares changed hands today with other bids unsatisfied at the closing price and lowest offers at the €2.23 level. Last Friday, BOV published its Interim Directors’ Statement covering the first quarter of its 2011/12 financial year. BOV reported that it registered a net profit similar to that in the previous comparable period.
  • MaltaPost’s equity also in negative territory this week with a 4% drop to rank as the worst performer. This is mostly due to this morning’s 3% slump to a new 6-week low of €0.96 on low volumes of 2,202 shares. Other bids unsatisfied at the closing price with lowest offers at the €0.988 level.
  • Lombard Bank maintained the €2.55 level across four trades totalling 1,908 shares to end the week 0.8% lower. Lowest offers still in the market at €2.57 with outstanding bids at the €2.51 level.
  • GO and Island Hotels also unchanged today on low volumes. GO held on to the €0.89 level on volumes of 1,600 shares to close the week 1.1% lower. Meanwhile 300 Island Hotels Group shares changed hands at the €0.85 level representing no movement over the week.