Daily Market Highlights (12.06.12)

  • MSE Share Index back into positive territory with a 0.2% rise to 3,045.180 points on the back of increases in the share prices of BOV and GO. Meanwhile, the only other active equity (MIA) closed unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index again edged marginally higher to 989.041 points as the Central Bank of Malta raised its bid prices for the medium to long-term local government paper. Eurozone yields started the day close to the 1.3% level in contrast to yesterday’s rally as markets raised doubts over the terms and conditions of the €100 billion bailout for Spain’s banking system and questioned whether the bailout resolves all of Spain’s issues. Moreover markets are still awaiting Greece’s general elections which are scheduled to be held this weekend. Nonetheless, this afternoon yields surged to regain the 1.37% level as prices dropped possibly on some profit taking by large institutions. Various market commentators have however stated that this rally is not sustainable and expect yields to fall back.
  • Last 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.
  • GO’s share price continued to move higher with a further 3% increase to a new 28-week high of €1.02 on a single trade of 2,000 shares. Following today’s latest upturn, GO’s equity jumped 45.7% since it touched an all-time low of €0.70 on 14 May. Over the past few weeks, activity in GO shares was significant with just under 1.2 million shares changing hands across 109 deals, representing 1.2% of the total issued share capital.
  • BOV’s equity also in positive territory as it reversed yesterday’s 0.4% drop to regain the €2.06 level. Trading activity was limited to a mere 2,334 shares in contrast to the high volumes that changed hands yesterday. Last week, 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.
  • Meanwhile HSBC shares were inactive today with offers in the market at the last closing price of €2.52 and highest bids at the €2.49 level.
  • A small deal of 100 MIA shares was transacted at the €1.749 level representing no change from the previous close. Last 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.
  • This morning, RS2 Software held its Annual General Meeting during which shareholders approved all the items on the agenda including a 1 for 15 bonus issue and an increase in the authorised share capital of the company from 40 million shares to 50 million shares. The new bonus shares are expected to be admitted to the Official List as from next Friday 15 June.