Daily Market Highlights (06.07.12)

  • MSE Share Index lifted 0.7% higher to 3,036.163 points on the back of a 3.2% jump in HSBC which offset the 7% slump in Simonds Farsons Cisk. The only other active equity, BOV, ended the session unchanged. Download a copy of the Equity Market Summary. Over the week, the local equity benchmark ended 0.5% higher solely due to the 4% weekly rise in HSBC which offset the six other negative performing equities, including Farsons, GO, MIA and RS2 Software.
  • On the bond market, the Rizzo Farrugia MGS Index edged higher for the fourth consecutive session to 988.364 points (the highest level since mid-June) reflecting the slide in Eurozone yields which dropped below 1.35% – the lowest level since 12 June. Eurozone yields have dropped back by more than 30 basis points from last Friday’s high of 1.691% as the initial euphoria following the decisions taken at the EU summit were offset by escalating concerns over the eurozone’s sovereign debt crisis. In fact, markets were disappointed that the European Central Bank (ECB) failed to announce further stimulus measures apart from the 25 basis point cut in interest rate. Moreover the concurrent GBP50 billion injection by the Bank of England and the second interest rate by the Central Bank of China highlighted the stifling global economic growth.
  • HSBC’s share price jumped 3.2% during this morning’s session to anew 4-month high of €2.61 across seven trades totalling 19,500 shares. Equity ended the week as the sole positive performer with a weekly increase of just under 4% ahead of the Bank’s half-year results publication on Friday 27 July.
  • Meanwhile BOV held on to the €2.05 level today on volumes of only 1,186 shares to end the week 0.5% lower. However bids are already placed higher at €2.06 with lowest offers at the €2.075 level.
  • A single trade of 5,500 Simonds Farsons Cisk shares forced the equity 7% lower to the €2.00 level from its 42-month high of €2.15. As a result, the equity ended the week as the worst performer with an equivalent weekly decline.
  • GO and MIA also in negative territory this week. After rallying by 40% during the second quarter of the year, GO edged 5.5% lower this week to €1.11 as support for the equity at the 2012 high faded away. GO closed lower for the second consecutive week. Similarly, the share price of the airport operator also retreated by 1.6% from its 2012 high this week to the €1.75 level despite Wednesday’s announcement of a record number of passengers during the first half of the year.
  • The local interim reporting season is set to kick off with MIA’s results on 17 July followed by Middlesea Insurance on 23 July. Subsequently, HSBC will present its number for the first six months of 2012 on 27 July whilst Plaza will be publishing its half-year financial figures on 31 July.