Daily Market Highlights (07.09.11)

  • Local equity market in positive territory for the fifth successive session mainly due to the sustained recovery in the share prices of BOV and HSBC. MSE Share Index up another 0.7% to 3,114.152 points as BOV,HSBC and Middlesea trade higher to offset the marginal decline in Farsons. On the other hand, MIA closed unchanged at €1.54. Download a copy of today’s Equity Market Summary.
  • This morning the Central Bank of Malta Stockbroker lowered its Malta Government Stock bid prices to reflect the credit rating downgrade of Malta from A1 to A2 by Moody’s. In a press release, the rating agency explained that the downgrade was the result of lower medium-term economic growth rates arising from the 2008-9 financial crisis and the inability to achieve projected improvements in the Government’s balance sheet established at the time of EMU accession. Moreover Moody’s concluded that even if debt ratios stabilize in the coming years, they are likely to remain higher, and therefore riskier, than those commensurate with Malta’s previous rating of A1. The largest decline was of 99 basis points in the bid price of the 5.25% MGS 2030 (I) which dropped to the 102.69% level. Overall the Rizzo Farrugia MGS Index slid 0.5% lower to 992.696 points from yesterday’s 2011 high.
  • BOV’s share price edged €0.02 higher for the third consecutive session this week to regain the €2.58 level. Over 6,200 shares changed hands today with few offers remaining outstanding at the closing price
  • HSBC also maintained its positive streak. Share price closes minimally higher today at the €2.73 level on low volumes of over 2,500 shares
  • MIA held on to the €1.54 level also on low volumes of 2,500 shares with lowest offers now placed at €1.55. Earlier this week, the airport operator issued the August 2011 traffic statistics revealing a minimal decline of 0.1% from the all-time monthly record of 427,924 passenger movements recorded in August 2010. Following the August results, MIA registered an 8.5% increase in passenger movements to just under 2.4 million since the start of the year. Further details available here. MIA is scheduled to pay its recently declared net interim dividend of €0.03 per share on 15 September.
  • A small trade of 144 Middlesea Insurance plc transacted at the €0.911 despite the ongoing offer by Mapfre Internacional S.A. to acquire the remaining shares of Middlesea at €0.965 per share. Shareholders have until Monday 26 September to submit their acceptance form if they wish to accept this offer.
  • Low volumes of 284 shares also traded across Simonds Farsons Cisk with the share pricing easing 0.3% lower to the €1.795 level. The Farsons Group generally published its half-year results by the end of September.
  • Tomorrow is a public holiday and therefore no trading will be held. The Malta Stock Exchange will re-open for trading on Friday 9 September.