Daily Market Highlights (06.10.11)

  • MSE Share Index down 0.3% today to 3,107.151 points as three out of the six active equities traded lower whilst the rest ended this morning’s session unchanged. Download a copy of today’s Equity Market Summary.
  • On the bond market, this morning the Central Bank of Malta Stockbroker once again lowered its Malta Government Stock bid prices in line with the continued recovery in yields which touched the 1.90% level. As a result, the Rizzo Farrugia MGS Index slid 0.3% lower to 991.105 points.
  • Yields retreated back to the 1.84% level soon after the European Central Bank announced its decision to maintain its benchmark interest rate at 1.5%. This was done in order to contain last month’s rise in the inflation rate across the eurozone. Nonetheless, given the prevailing sovereign debt crisis, analysts are now expecting the ECB’s President Jean Claude Trichet to indicate the possibility of a rate cut at next month’s monetary policy meeting. Similarly, the Bank of England held its benchmark rate at the historically low level of 1%. Furthermore the Bank of England announced that it will be increasing its quantitative easing programme by a further GBP75 billion to a total GBP275 billion in a bid to boost an economy which is moving towards stagflation – a combination of high inflation and low growth.
  • GO’s equity remains under pressure as the equity slid 3.5% back to the €1.10 level across three trades totalling almost 7,000 shares. Equity is now 43.2% below its value at the beginning of the year reflecting investors’ concerns relating to the widening losses at Forthnet. On the Athens Stock Exchange, Forthnet is trading at an all-time low ahead of the Group’s Extraordinary Annual General meeting during which shareholders will be asked to approve, amongst other items, a €30 million rights issue.
  • Share price of MIA drops 1.3% to €1.55 despite this week’s earlier announcement revealing a 2.4% increase in passenger traffic during the month of September 2011 to 382,389 movements (a record for the month of September). MIA explained that this increase was mainly due to an 8.2 percentage point increase in the average seat load factor to 83.2%. Further details of traffic results available here. 4,000 shares changed hands today with outstanding bids in the market at €1.54 and offers at the €1.56 level.
  • Lombard Bank shares also in negative territory today as the equity slips 3.3% to €2.59 on volumes of 8,590 shares. Other bids unsatisfied a the closing price lowest offers now pitched at the €2.63 level.
  • BOV’s equity closes at the €2.50 level for the fourth consecutive session. Almost 23,000 shares were exchanged today with further unsatisfied offers at the closing price and highest bids now placed at the €2.46 level. BOV generally publishes its full-year results by the end of October.
  • Likewise, HSBC’s equity closed today’s trading session unchanged at the €2.65 level on lower volumes of 1.680 shares. Other bids outstanding at the last closing price whilst lowest offers placed slightly higher at the €2.658 level.
  • A small deal of 216 Middlesea shares was executed at the €0.92 level, representing no change from the previous close. The Middlesea Group is scheduled to publish the results of Mapfre Internacional’s takeover bid by the end of the week.