Daily Market Highlights (06.07.11)

  • Local equity market closes in negative territory as all 3 active equities decline. MSE Share Index down 0.3% to 3,325.727 points on losses in BOV, GO and MIDI. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 973.934 points as benchmark Eurozone yields retreated to the 2.95% level following the downgrade of Portugal’s rating to Ba2 (below investment grade) by Moody’s. Further pressure on European yields as the sovereign debt crisis escalates. Tomorrow the European Central Bank is scheduled to hold its monthly monetary policy meeting during which the Bank is expected to raise interest rates as the euro-region inflation rate exceeded the 2% ceiling for seven consecutive months.
  • On the corporate bond market, the price of the 7.5% Mediterranean Investments Holdings plc continued to recover as it traded just below the 90% level. Meanwhile a further €30,800 (nominal) of the 7.15% MIH plc 2017 bonds traded at its low of 80%. A trade was executed for the first time in the recently listed fungible issue of the 6.25% Mediterranean Bank plc 2015 bonds. The deal of €30,000 (nominal) was transacted at the par level.
  • Yesterday’s 1.5% increase in GO’s share price was completely wiped out by today’s 4.3% plunge back to the €1.34 level. Just over 4,000 shares changed hands today with further bids unsatisfied at the closing price. Yesterday GO announced the complete takeover of the companies forming the Bell Med Group. GO had acquired 60% of these companies for €9.5 million in April 2009. GO is now acquiring the remaining 40% shareholding for €8 million. Therefore the total consideration amounted to €17.5 million. However GO did not provide added information on the recent financial performance of the Bell Med Group to enable investors to understand the beneficial impact from this recent takeover.
  • BOV share price down 0.4% to close at €2.69 across seven trades totalling over 14,700 shares. Best bids in the market at €2.67 whilst lowest offers pitched at the €2.70 level.
  • Meanwhile HSBC’s equity was inactive for the second time this week with bids in the market at the last closing price of €2.92 whilst lowest offers placed at the €2.93 level. The Bank generally publishes its half-year results by the end of July.
  • The only other active equity during this morning’s session was MIDI plc which slipped 1.1% lower to €0.435. 30,000 shares exchanged today with further offers unsatisfied at the last trading price whilst best bids still placed at the €0.30 level.