Daily Market Highlights (08.06.12)

  • Local equity market wraps up a positive week with a further 0.1% increase in the MSE Share Index today to 3,045.103 points on the back of increases in the share price of HSBC, MIA and GO. Meanwhile BOV and FIMBank traded lower. Download a copy of the Equity Market Summary. Following four consecutive sessions of increases, the local equity benchmark ended the week 0.6% higher representing the third successive weekly rise.
  • On the bond market, the Rizzo Farrugia MGS Index dropped 0.2% this morning to 988.163 points reflecting yesterday’s rebound in Eurozone yields which touched a high of 1.416% after Spain successfully conducted a €2.1 billion bond auction. However, fears returned in the markets today after Fitch downgraded Spain’s credit rating last night by three notches to ‘BBB’ and increased speculation of a possible request by Spain to the European Union for financial aid to shore up the country’s banks. Fitch estimates that Spain requires up to €100 billion to re-capitalise their balance sheets. As a result, Eurozone yields have dropped back below the 1.30% level this afternoon.
  • Earlier this week, 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.
  • HSBC closes above the €2.50 level for the first time in three weeks as its share price moved 0.8% higher during this morning’s session to the €2.52 level. Just over 3,300 shares changed hands today with best bids in the market at €2.49 and lowest offers at the €2.57 level. Equity ended the week in positive territory, with a 1.6% rise, for the first time in five weeks.
  • On the other hand, BOV’s share price slid 1% lower to close at the €2.06 level across twenty four trades totalling 91,126 shares. Other offers remain unsatisfied at the closing price with best bids at the €2.055 level. Equity ended the week unchanged. Last Monday the Bank announced the MFSA conclusions with respect to the sales practices adopted by the Bank in connection with the La Valette Multi Manager Property Fund (LVMMPF). Further information can be obtained here.
  • Further support for GO, with the quad play telecom operator’s share price up 2.1% today to regain the €0.97 level – just €0.01 below its 2012 high. A total of 76,800 shares were exchanged across nine trades with lowest offers now at the €1.00 level. GO’s equity registered the fifth consecutive weekly increase with another 5.4% rise following a turnaround in investors’ sentiment which can be possibly attributed to the Group’s plans revealed during the May 2012 Annual General Meeting in respect of its property holdings.
  • MIA edged 0.6% higher today (for an equivalent weekly increase) to regain the €1.74 level across two trades totalling 11,000 shares. Other bids unsatisfied at the last traded price with lowest offers at the €1.749 level. Earlier this week, the airport operator published the traffic results for the month of May. The statistics revealed a record for the month of May of 344,008 passenger movements representing a 5.8% rise compared to the same period last year. Further details on the traffic results available here.