Daily Market Highlights (08.07.11)

  • Local equity market in negative territory for the third consecutive session as shallow trading activity persists. MSE Share Index eased minimally lower to 3,323.537 points as the declines in HSBC, MIA and MaltaPost offset the recoveries in BOV, GO and Farsons. Meanwhile Plaza held on to the €1.80 level. During the first week of Q3, the local equity benchmark lost 0.3% as the declines in MIA, MIDI and MaltaPost ousted the positive performances of Farsons and FIMBank. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index climbed 0.2% this week to 973.784 points as yesterday’s interest rate hike by the European Central Bank failed to supress the markets’ concerns relating to the Eurozone’s sovereign debt crisis. For the second time this year, the ECB raised its reference rate by 25 basis points to 1.5% in its continued effort to curb inflation which has exceeded Bank’s target for seven consecutive months.
  • MIA share price plunges 5.9% to a new 8-month low of €1.60 across nine trades amounting to 9,200 shares. The airport operator’s equity ranks as the worst perform of the week as it closed in negative territory for the fourth consecutive week. The market awaits developments on the threat of industrial action by the pilots of Air Malta as well as further information of the restructuring of the national airline. The company is shortly expected to announce the June traffic statistics and provide a revised forecast for 2011 passenger numbers.
  • HSBC fails to hold on to yesterday’s gains as its share price eases 1% lower to €2.92 across 3,000 shares. Despite today’s downturn the equity closed the week unchanged ahead of the Bank’s half-year results publication by the end of the month.
  • Likewise, BOV ended the week unchanged after climbing 1.9% during this morning’s session to regain the €2.70 level on volumes of 7,466 shares. Other offers unsatisfied at the last traded price whilst best bids still placed at the €2.65 level.
  • A single trade of 1,000 GO shares helped the equity regain the €1.38 level, representing no change over last week’s close. Earlier this week, GO announced that it completed the takeover of the Bell Med Group companies by acquiring the remaining 40% for €8 million. Further details available here.
  • Shallow trading also evident in Simonds Farsons Cisk with only 500 shares changing hands. This morning’s deal was transacted at the €1.70 level representing a 1.2% rise over the previous close. Further offers outstanding at the last closing price whilst best bids still in the market at the €1.68 level.
  • MaltaPost’s share price closed below the €1.00 level for the first time since 7 January. The share price opened today’s session at a new 2011 low of €0.98 before recovering to a close of €0.999 which represents a weekly decline of 1.6%. Four trades executed this morning totalling 9,000 shares with bids now in the market at €0.90 whilst lowest offers pitched at the €1.00 level. The postal operator is shortly expected to publish its Interim Statement providing an update on the Company’s performance since its financial half-year ended on 31 March 2011. During the first six months of its financial year, the postal operator reported a marginal decline in profitability as the growth in revenue (mainly from parcels) was offset by increased costs including wages and utility bills.
  • Plaza Centres maintains the €1.80 level on a single deal of 1,934 shares. Other offers outstanding at the last traded price whilst best bids now placed at the €1.70 level.
  • This morning FIMBank provided an updated following the announcement made the previous day, informing investors that the Courts of Malta accepted its application and decided in its favour for the immediate and conclusive revocation of the garnishee order. Further details available here.