Daily Market Highlights (11.08.11)

  • Local equity market in negative territory for the third time this week as investor sentiment remains sensitive to international developments. MSE Share Index down 0.2% to 3,155.918 points as HSBC and Lombard closed lower. On the other hand, the other four active equities, including BOV & IHI, maintained their previous price levels. Download a copy of today’s Equity Market Summary.
  • European benchmark yields dropped below the level of 2.20% for the first time in many months on speculation that the eurozone debt crisis could also impact France’s ‘AAA’ credit rating and amid increased nervousness across global equity markets. In line with the drop in yields, the Central Bank of Malta Stockbroker sharply raised its bid prices for Malta Government Stock resulting in a 0.4% rise in the Rizzo Farrugia MGS Index to a new 7-month high of 991.856 points. Volumes increased in the secondary market with €1.50 million (nominal) trading in the 5.25% MGS 2030 (I). However this 19-year stock again failed to reach the Central Bank’s bid price which today stood at 103.37%. High volumes of over €1.4 million (nominal) also registered in the 4.25% MGS 2017 (III) as the stock touched a new all-time high of 104.10%.
  • HSBC reversed some of yesterday’s 2.2% rise as its share price retreated by 0.7% to the €2.76 level across four trades totalling just over 5,800 shares. Best bids now placed at €2.751 whilst lowest offers still pitched at the €2.80 level. The Bank is due to pay the recently declared interim dividend on 24 August.
  • Meanwhile BOV held on to yesterday’s 6.1% rise as the equity closed at the €2.60 level after easing from an intra-day high of €2.62. Twelve trades amounting to over 14,000 shares transacted this morning with best bids in the market at €2.58 whilst lowest offers pitched at the €2.605 level.
  • Also in the banking sector, Lombard Bank eased minimally lower to close at the €2.699 level across volumes of 10,500 shares. Other offers unsatisfied at the closing price whilst best bids placed at the €2.60 level ahead of the Bank’s 2011 half-year results publication on 23 August.
  • IHI unchanged at the €0.75 level across six trades totalling just over 11,600 shares. Similarly, MIA traded unchanged at the €1.50 level on low volumes of 1,900 shares.
  • A single trade of 18,150 RS2 Software plc shares was transacted at the 2011 high of €0.55. Lowest offers now placed at the €0.56 level whilst best bids still in the market at the €0.53 level.
  • This morning, Medserv announced that it will publish its half-year results on 30 August. These will be preceded by those of MIDI plc on 29 August with another six companies also due to report on their financial position by end-August.