Daily Market Highlights (09.08.11)

  • Local equity market follows declines across global equity markets. MSE Share Index registers its worst daily performance since March 1999. The MSE Share Index tumbled 4.6% during this morning’s session to a new 21-month low of 3,117.717 points following the sharp downturn in the five largest equities by market cap, particularly HSBC and BOV. Download a copy of today’s Equity Market Summary.
  • The initial calming effect of yesterday’s announcement by the European Central Bank, revealing that it will be actively supporting Spain and Italy through secondary market bond purchases, was short-lived as the Eurozone yields dropped back towards a level of 2.30%. As a result, the Central Bank of Malta Stockbroker sharply raised its Malta Government Stock bid prices with the Rizzo Farrugia MGS Index rising to a 7-month high of 989.815 points.
  • The volatility in bond markets is evident in the movements in the bid prices of the 5.25% MGS 2030 (I). After eurozone yields reached 2.53% yesterday, the Central Bank of Malta lowered the bid price of the 19-year bond by 92-basis points to 102.05%. However, the Central Bank raised the same bid price today by 125 basis points to 103.3% in line with the decline in yields. However, trading activity in the 5.25% MGS 2030 was similar to previous sessions with trades taking place below the bid price due to the increasing amount of offers on the market.
  • BOV’s share price down 8.9% to a new 21-month low of €2.45 across 67 trades totalling over 136,000 shares. Further offers unsatisfied at the closing price whilst best bids now placed at the €2.42 level.
  • Similarly, HSBC’s share price dropped 5.9% also to a new 21-month low of €2.72 on lower volumes than those seen in BOV. In fact, only ten trades amounting to almost 20,000 shares were executed during this morning’s session. Other bids outstanding at the last traded price with lowest offers now placed at the €2.75 level. The Bank is due to pay the recently declared interim dividend on 24 August.
  • MIA share price also succumbs to the sell-off with the equity retreating by 6.25% to a fresh 18-month low of €1.50 on volumes of 5,200 shares. Few bids in the market at the last traded price with a further 15,000 shares on offer at today’s closing price. Last week, the airport operator announced a further 3.4% increase in passenger movements during the month of July leading to a 10.6% rise in passenger numbers since the start of the year. MIA is expecting to register a 3.2% growth in passengers in 2011 to a new record high of 3.4 million passenger movements.
  • Following last week’s 3.7% drop, IHI shares eased a further 1.3% during this morning’s session across four trades totalling 10,000 shares. Other offers unsatisfied at the closing price whilst best bids now placed at the €0.702 level. IHI still has to announce the date of the interim results publication.
  • Lack of support also evident in GO shares which plunged 6.1% to a new all-time low of €1.21 on a single trade of 1,452 shares. GO also has not yet revealed the half-year results publication date. Meanwhile Forthnet is shortly expected to publish its half-year results.
  • On the other hand, Lombard edged 0.4% higher to regain the €2.70 level across four trades totalling just over 20,000 shares ahead of the bank’s 2011 half-year results scheduled for publication on 23 August.