Daily Market Highlights (12.09.11)

  • Following last week’s 1.2% rise, the MSE Share Index today edged a further 0.5% higher to 3,130.513 points – the highest level in almost four weeks. Today’s upturn was fuelled by the continued recovery in the two large banks in contrast to the sharp downturn in international stockmarkets. In fact, major share indices in Europe are in deep negative territory (FTSE 100 Index – 2.5%; DAX 30 Index – 3.3%) as financial equities drag markets lower on intensified concerns regarding the eurozone’s sovereign debt crisis, particularly the ever increasing probability of a default by Greece. Download a copy of today’s Equity Market Summary.
  • As investors shun equities, focus turns on bond markets with the Eurozone yield sliding back to yet another all-time low of 1.706%. This triggered a significant upward revision in the Malta Government Stock bid prices by the Central Bank of Malta stockbroker. The bid price of the 4.25% MGS 2017 (III) reached an all-time high of 105.11% whilst the 5.25% MGS 2030 (I) bid price of 103.95% is an 11-month high. Overall, in addition to last week’s 0.3% rise, the Rizzo Farrugia MGS Index climbed a further 0.3% today to reach a new 10-month high of 998.762 points.
  • On the corporate bond market, the recently issued 4.8% BOV 2018 second tranche traded for the first time at 101.50%.
  • BOV’s share price in positive territory for the sixth consecutive session as it edged a further 1.2% higher to regain the €2.62 level. Over 36,000 shares changed hands today with other offers unsatisfied at the closing price.
  • HSBC reversed last Friday’s 1.1% decline as the equity regained the €2.73 level during this morning’s session albeit on very low volumes of just 300 shares. Other offers outstanding at the last trading price whilst best bids now in the market at the €2.71 level.
  • Last week’s 1.3% rise in MIA was wiped out by this morning’s 2% drop back to the €1.51 level across two trades totalling 800 shares. Bids already placed minimally higher at €1.515 with lowest offers at the €1.54 level. Last week, the airport operator issued the August 2011 traffic statistics revealing a minimal decline of 0.1% from the all-time monthly record of 427,924 passenger movements recorded in August 2010. Following the August results, MIA registered an 8.5% increase in passenger movements to just under 2.4 million since the start of the year. Further details available here. MIA is scheduled to pay its recently declared net interim dividend of €0.03 per share on 15 September.
  • Last Friday, Island Hotels Group published its Interim Statement covering the three months ended 31 July. During this period, the overall performance of the Group was satisfactory despite the volatility and competition inherent in the tourism industry. The Directors expect the results for the financial year ending 31 October 2011 to be similar to those registered in the previous financial year when a loss of €0.65 million was registered. Further details available here.