Daily Market Highlights (12.07.11)

  • Local equity market in positive territory contrasting the sharp declines in stockmarkets around the world, particularly European indices amid the Eurozone sovereign debt crisis. The MSE Share Index closed the day marginally higher at 3,321.212 points as BOV’s 0.7% rise offsets MIA’s 0.6% drop. Meanwhile the only other active equity, RS2 Software, closed unchanged on high levels of activity. Download a copy of today’s Equity Market Summary.
  • This morning European financial markets were characterised by further sharp losses as concerns on the region’s sovereign debt crisis reached fever high following a sell-off across Italian banks. Talk of contagion among European nations from a Greek default is increasing with heightened doubts also about Italy and Spain. As a result, the euro plummeted to a new 4-month low against the US Dollar of US$1.38 whilst investors’ “flight to safety” forced 10-year Eurozone yields to drop to an 8-month low of 2.51%. Markets recovered slightly late morning but the situation remains volatile.
  • In response to the sharp downturn in eurozone yields, the Malta Government Stock bid prices quoted by the Central Bank of Malta were revised strongly upwards this morning sending the Rizzo Farrugia MGS Index up by 0.6% to 983.696 points – the highest level since 24 February 2011. It is noteworthy to highlight that the bid price of the 4.25% MGS 2017 (III) is at a new all-time high of 102.50%. Over €200,000 (nominal) of this stock traded during this morning’s session. Meanwhile, in the longer-dated 5.25% MGS 2030 (I), the bid price rallied by a further 143 basis points to 103.54%. However, in view of the large amounts on offer and the slight recovery in yields late morning, the price failed to reach this level and advanced by 101 basis points to 103.12%. Trading activity in the 19-year paper rose to almost €4.7 million (nominal).
  • BOV’s share price dropped to an intra-day low of €2.65 before fresh bids helped the equity rise to the €2.699 level representing a 0.7% rise over the previous close. Fourteen trades executed today totalling just over 19,700 shares with other offers unsatisfied at the last traded price.
  • On the other hand, MIA slipped 0.6% lower to a new 8-month low of €1.59 on a single trade of 5,000 shares. The Association of Airline Pilots (ALPA) will decide tomorrow whether to go on with strike action next Saturday.
  • The share price of RS2 Software plc maintained the €0.53 level with volumes increasing to almost 89,000 shares today. Lowest offers placed at €0.54 whilst best bids amounting to almost 94,000 shares in the market at the €0.50 level.
  • Two trades amounting to 850,609 6pm shares have been traded off-market at the GBP0.46 level compared to the last closing price of GBP0.32 per share. These shares relate to the transfer between Ivan Bartolo (the acquirer) and two other Directors, namely Alan West Robinson and Stephen Wightman (the sellers) as detailed in the Rights Issue Prospectus dated 28 March 2011.