Daily Market Highlights (13.01.12)

  • MSE Share Index back into negative territory with a 0.2% drop to 3,106.588 points following HSBC’s 1.2% decline. On the other hand, GO and 6pm traded higher whilst BOV, Lombard and Medserv closed unchanged. Over the week the local equity benchmark eased 0.5% lower to 3,106.588 points mainly due to the weekly declines in the share price of the two large banks and GO which offset the second consecutive weekly increase of MIA. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index was marginally unchanged today at 988.345 points to end the week 0.2% higher. This reflects the drop in benchmark Eurozone yields closer to the 1.8% level despite yesterday’s comments by the European Central Bank President Mario Draghi that “there are some signs the euro-area economy is stabilizing”. Moreover, the successful debt auctions by Germany, Spain and Italy earlier this week also failed to comfort the markets which are still focused on the downside risks as a result of the ongoing sovereign debt crisis. In fact, concerns were reignited this afternoon following the 3-year bond auction by Italy which showed that the country just managed to raise the amount needed. This resulted in the benchmark Eurozone yield to slide below 1.8% as well as forcing the euro below the US$1.28 level against the US Dollar.
  • This morning GO’s Board of Directors announced that they have resolved to instruct Forgendo Limited, the joint-venture investment vehicle equally owned by GO and its parent company Emirates International Telecommunications Limited (EITL) which owns 41.27% of Forthnet S.A., to vote against the €30 million rights issue of Forthnet during the Extraordinary General Meeting currently being held. The Greek telecoms company is seeking shareholder approval for a number of changes to its capital structure and the €30 million rights in issue in line with the conditions of its recent restructured debt. Following this morning’s announcement, GO’s share price had a muted reaction as it edged 0.6% higher from its all-time low to close at the €0.895 level on volumes totalling 12,561 shares. Despite this morning’s slight upturn, GO’s equity still ended the week as the worst performer with a drop of 5.8%.
  • HSBC shares slid 1.2% lower to €2.57 on a single trade of 1,100 shares. Other bids unsatisfied at the closing price with lowest offers at the €2.59 level. The Bank, which closed the week 1.2% lower, generally publishes its preliminary full-year results by the end of February.
  • Meanwhile, BOV closed today’s session unchanged at the €2.29 level after recovering from an intra-day low of €2.28. Eleven trades transacted this morning comprising 8,867 shares. Outstanding offers already placed minimally below the last closing price at €2.289 with best bids at the €2.27 level.  BOV’s equity closed the week 0.13% lower after adjusting for the bonus issue.
  • Medserv’s equity was active for the first time since 18 November 2011 as 1,310 shares traded at an unchanged level of €3.95 level.
  • 6pm also active for the first time in several weeks as new bids helped the equity rise 25% to regain the GBP0.40 level. Four trades totalling 21,000 shares changed hands today with further offers unsatisfied at the last trading price and no further bids in the market.