Daily Market Highlights (05.06.12)

  • MSE Share Index again in positive territory with a further 0.1% increase to a new 4-month high of 3,039.398 points on the back of increases in the share prices of GO and HSBC  which offset the decline in BOV. The only other active equity, Middlesea Insurance, ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index inched marginally higher to 991.289 points as Eurozone yields dipped back below the 1.20% level. The downturn was triggered by comments from Spain’s Treasury minister who sated that the yields requested by markets to lend to the Spanish government meant that markets were shutting out the country. Spain is due for a bond auction next Thursday.
  • This morning, the Treasury published a prospectus in respect of three new Malta Government Stock issues. The Treasury will be offering a maximum of €180 million in the following stocks: 3.75% MGS 2017 (IV); 4.3% MGS 2022 (II) and 5.1% MGS 2029 (I). Prices will be announced on Thursday 14 June with the opening of subscriptions taking place on Monday 18 June. Subscriptions close on Wednesday 20 June for the general public and at noon on Friday 22 June for applications in the auction process. Copy of the prospectus available here.
  • GO’s share price moved a step closer towards regaining its 2012 high and reversing all of the 23.5% drop registered during the first four months of 2012. In fact, the equity of the quad play telecom operator edged 3.3% higher today to close at the €0.95 level – just €0.03 below its 2012 high. Moreover, GO’s equity has gained 35.7% from its all-time low of €0.70 reached on 14 May following a turnaround in investor sentiment possibly on the back of the Group’s plans, revealed during the 2012 Annual General Meeting, to extract value from its investment property portfolio valued over €50 million.
  • BOV eased 1% lower to close at the €2.07 level across eight trades totalling 7,222 shares. Other bids unsatisfied at the closing price whilst lowest offers at the €2.09 level. Yesterday, BOV announced that it has received the Malta Financial Services Authority’s conclusion with respect to the sales practices adopted by the Bank in connection with the La Valette Multi Manager Property Fund (LVMMPF). The findings of the MFSA, which may be appealed by the Bank within 30 days, alleges breaches of certain conditions and guidelines. The Authority has now directed the Bank to fully cooperate with a review of the investors’ individual files to determine whether each respective investor falls within the experienced investor category. In its notice, the Authority stated that those investors not eligible to invest in the Fund shall be eligible for compensation from the Bank amounting to €1 per share less any compensation already received. Moreover, the MFSA imposed an administrative penalty of €203,150 on the Bank in this respect, part of which may be returned to the Bank following the completion of the individual investors’ file review. Overall, the Bank explained that this will not have a material impact on the results for the financial year ending 30 September 2012.
  • On the other hand, HSBC edged 0.8% higher to regain the €2.50 level on a single deal of 4,000 shares. Last week, the Bank announced that its Board of Directors is scheduled to meet on 7 August to consider and approve the group’s half-yearly financial statements.
  • Middlesea Insurance, the only other active equity, closed unchanged at the €0.645 level. One trade of 2,144 shares was executed with best bids placed at €0.64 and lowest offers at the €0.65 level.