Daily Market Highlights (04.11.11)

  • During the last trading session of the week, BOV continued to reverse last Monday’s rally pushing the MSE Share Index 0.8% lower to 3,120.104 points. On the other hand, MIA edged 2.3% higher today whilst HSBC closed unchanged. Download a copy of today’s Equity Market Summary. Despite today’s downturn, the local equity benchmark still closed the week 0.9% higher on the back of the recoveries registered by HSBC, MIA, GO and RS2 Software. Only Middlesea Insurance traded lower during the past five sessions whilst all other equities closed the week unchanged.
  • This morning, the Treasury announced the issuance of two new Malta Government Stocks which are available for subscription by the general public. The two stocks are the 4.25% MGS 2017 (III) FI and the 5.2% MGS 2031 (I). Prices of both stocks will be determined on Thursday 10 November. Subscriptions open on Monday 14 November and close on Wednesday 16 November. Further details available here.
  • On the bond market, Eurozone yields continued to recover to reach the 1.93% level as markets regained some confidence following the Greek Prime Minister’s decision to discard the idea of holding a referendum and the news from the European Central Bank to cut its reference interest rate by 25 basis points to 1.25% in response to a slowing rate of growth across European economies. The Rizzo Farrugia MGS Index edged 0.2% higher to 989.794 points.
  • Further selling pressure evident across BOV shares during this morning’s session as the equity tumbled 4% lower back to the €2.40 level on volumes of over 49,500 shares. BOV’s equity ended the week unchanged as the 6.3% rally on Monday was reversed in the subsequent sessions. The Board of the bank recently recommended a final gross dividend of €0.08 per share to shareholders as at close of trading on 11 November 2011. The Board also recommended a 1 for 8 bonus issue to shareholders as at close of trading on 9 January 2012. This bonus issue will be funded through the capitalisation of €30 million of reserves. Further details available here. Yesterday the Malta Financial Services Authority (MFSA) announced that its second investigation into the La Valette Multi-Manager Property Fund related to access to sensitive commercial information by employees and directors of the fund is in its final stages. Meanwhile, earlier on today BOV announced the appointment of Charles Borg to the post of CEO in replacement of Tonio Depasquale who will be retiring on 16 December 2011.
  • A small trade of 148 HSBC shares transacted today at the €2.70 level representing no change from the previous close. The Bank’s equity closed the week 2.3% higher with further offers unsatisfied at the last traded price.
  • Further demand for MIA shares following yesterday’s October traffic results announcement. Equity lifted another 2.3% higher to a new 7-month high of €1.79 after the airport operator announced a further 4.4% increase in passenger movements during the month of October to 346,480 – the highest level ever reached in October. This improvement was mainly due to the 8.3 percentage points increase in the average seat load factor to 80.5%. A few weeks ago, the airport operator reported that is expecting at least a 4.5% growth in passenger movements during the whole of 2011. Further details on traffic statistics available here.
  • Medserv plc announced today that its Board of Directors is scheduled to meet on 16 November. Amongst other items, the Directors are expected to consider the declaration of an interim dividend.