Daily Market Highlights (13.06.12)

  • MSE Share Index up a further 0.2% to a new 18-week high of 3,052.525 points on the back of increases in the share prices of GO, BOV and FIMBank. On the other hand, RS2 Software traded lower. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index slumped 0.5% to a new 2-month low of 984.481 points as the Central Bank of Malta significantly reduced its bid prices in line with the rally in Eurozone yields. In fact, the 10-year German benchmark yield rallied to a one-month high of 1.532% as markets speculated on a possible policy response to the situation in Greece prior to this weekend’s general elections as well as positive economic data indicating that production in the Eurozone during April fell by less than expected.
  • Prices of the new three Malta Government Stocks will be published tomorrow. 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). The opening of subscriptions will take place on Monday 18 June and 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 jumped 4.9% to a new 7-month high of €1.07 across eight trades totalling 11,450 shares. GO’s equity now ranks amongst the best performing equities with a year-to-date increase of 9.2%.
  • BOV also ended the day higher with a minimal increase to €2.061 on a small deal of 750 shares. Further bids unsatisfied at the closing price with lowest offers at the €2.08 level. 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.
  • FIMBank also moved 1.1% higher to regain the US$0.85 level on a single deal of 51,714 shares. Other offers of over 158,000 shares remain unsatisfied at the last traded price with highest bids at the US$0.80 level.
  • Meanwhile HSBC shares remain inactive for the second consecutive session with offers in the market now below the last closing price at €2.518 and highest bids placed at the €2.50 level.
  • The only other active equity, RS2 Software eased 1% lower to close at the €0.50 level across four trades totalling 69,200 shares. Yesterday, the IT Company 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.
  • This afternoon, Simonds Farsons Cisk issued its Interim Directors Statement reiterating that it continues to operate in a highly competitive environment and its performance is dependent on consumer confidence and tourism performance. Nonetheless, since the start of the group’s current financial year on 1 February 2012, the performance is in line with the Group’s target and higher than the results achieved in the comparative period last year.