Daily Market Highlights (10.08.11)

  • Local equity market partially recovers from yesterday’s 4.6% slump. MSE Share Index up 1.4% during this morning’s session to 3,162.842 points on the back of recoveries in HSBC, BOV and GO. On the other hand MIA failed to recover from yesterday’s declines whilst IHI and Middlesea closed in negative territory. The recovery in the local market also reflects the rebound seen in international share prices in response to last night’s statement by the Federal Reserve pledging to keep interest rates close to zero for a further two years. The Standard & Poor’s 500 Index in the US jumped by 4.7% – its biggest one-day increase since March 2009. Download a copy of today’s Equity Market Summary.
  • Eurozone yields edged marginally higher following yesterday’s announcement by the Federal Reserve. As a result, the Central Bank of Malta Stockbroker lowered its Malta Government Stock bid prices with the Rizzo Farrugia MGS Index slipping 0.2% to 987.885 points.
  • Fresh bids emerged during this morning’s session helping BOV’s equity to recover from yesterday’s 8.9% slump as its share price moved 6.1% higher to regain the €2.60 level. Over 29,900 shares changed hands today with best bids now in the market at €2.55 whilst lowest offers pitched at the €2.63 level.
  • Similarly, HSBC’s share price climbed 2.2% to partially reverse yesterday’s 5.9% drop and regain the €2.78 level across six trades totalling over 40,500 shares. Other bids outstanding at the last closing price whilst lowest offers pitched at the €2.80 level. The Bank is due to pay the recently declared interim dividend on 24 August.
  • A last minute deal helped GO close in positive territory after touching yet another all-time low. GO’s share price initially tumbled to the €1.20 level before recovering to close today’s session 4.1% higher at the €1.26 level. Four trades totalling 1,400 shares executed today with other offers unsatisfied at the last trading price.
  • MIA failed to recover from yesterday’s 6.3% plunge as a further 22,000 shares were exchanged at the €1.50 level. Lowest offers now placed at the €1.60 level whilst best bids still in the market at the €1.40 level. 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.
  • IHI slipped another 2.6% to €0.75 as investors remain wary over the dragging political turmoil in Libya. A small trade of 770 shares transacted today with other bids and offers outstanding in the market at the closing price.
  • Middlesea Insurance also in negative territory as its share price slipped 10% lower to the €0.90 level following the interim results publication last week revealing a 52.9% drop in pre-tax profits to €1.6 million due to the negative results on the Group’s investment portfolio and a reduced share of profits from the associated undertaking MSV Life plc. The market is still awaiting the details with respect to the takeover bid to be launched by Mapfre Internacional S.A. after the latter raised its equity stake in Middlesea to over 50%.