Daily Market Highlights (13.07.11)

  • MSE Share Index closed the day minimally higher at 3,321.376 as the 1% rise in HSBC offset the declines in BOV, Middlesea, FIMBank and GO. Meanwhile the only other active equity, RS2 Software plc, closed unchanged. Shallow trading activity persists among locally listed equities. Download a copy of today’s Equity Market Summary.
  • Trading activity during this morning’s trading session was largely concentrated around Malta Government Stocks despite a significant correction in prices as European markets settled down from yesterday’s wide-spread panic sparked by fresh concerns on Italy’s sovereign debt. However these concerns were later muted as Europe’s finance ministers indicated that Italy’s situation is still under control. As a result Eurozone yields recovered from an 8-month low of 2.51% to 2.71%. Accordingly, the Central Bank of Malta reduced its MGS bid prices forcing the Rizzo Farrugia MGS Index 0.4% lower back to the 980.057 points.
  • A total of €2.35 million (nominal) changed hands across MGS, of which €1.15 million was traded in the 5.25% MGS 2030 (I) between 102.5% and 102.2% – significantly lower than yesterday’s closing price of 103.12%. High volumes were also registered in the 3.75% MGS 2015 (VI) with €1 million (nominal) changing hands at the Central Bank’s bid price of 101.24%.
  • BOV’s share price edged 0.7% lower to €2.68 despite this morning’s media reports revealing statements made by the Minister of Finance Tonio Fenech that the Bank has comfortably passed an EU wide stress test. Moreover the Minister claimed that the local bank ranks amongst the top rated banks. Two trades amounting to just over 400 shares were executed this morning with further offers unsatisfied at the closing price whilst best bids are pitched at the €2.66 level.
  • On the other hand, HSBC edged 1% higher to regain the €2.95 level across six trades totalling 4,359 shares. Other bids outstanding at the last traded price whilst lowest offers now pitched at the €2.96 level. The Bank generally publishes its half-year results by the end of this month.
  • An insignificant trade of 58 Middlesea Insurance shares were transacted at the €0.98 level representing a 2% drop from the previous close. Few other bids unsatisfied at the closing price whilst best bids still pitched at the €1.00 level as the market eagerly awaits an announcement detailing the acquisition of Munich Re’s 19.9% shareholding by Mapfre Internacional which in turn is obliged to launch an offer for the remaining shares of Middlesea Insurance.
  • FIMBank fell to its multi-year low of US$0.77 as it traded for the first time this week. A total 8,237 shares were exchanged today with no bids in sight and lowest offers still pitched at the US$0.80 level.
  • GO opened lower at €1.34 only to partially recover by the end of today’s session to €1.36 the level which represents a 1.5% drop from the previous close. Other offers outstanding at the closing price whilst best bids placed at the €1.34 level.
  • No change in RS2’s share price as a further 45,300 shares changed hands at the €0.53 level. Lowest offers in the market at €0.54 whilst best bids pitched at the €0.501 level.