Daily Market Highlights (13.08.12)

  • The MSE Share Index shed 1.15% to its lowest level since 29 May as the losses registered in the share prices of HSBC and GO outweighed the marginal gain in Simonds Farsons Cisk. Download a copy of the equity market summary here.
  • On the local bond market, despite the Eurozone 10-year yields touching a high of 1.44%, the Rizzo Farrugia MGS Index edged marginally higher to an 11-month high of 997.432 points. This morning Germany sold €3.77 billion of new 6-months bills at an average yield of -0.05%. This reflected investors’ flight to the ‘safer’ German bunds amidst concerns regarding the peripheral eurozone countries. Meanwhile, Italy’s one year borrowing costs inched higher to 2.767% at this mornings’ auction compared to 2.7% obtained last month. Despite this increase, Italy’s one year borrowing cost is still below the level of almost 4% recorded in June.
  • Some of the longer-dated Malta Government Stocks eased slightly lower from last Friday’s level as the 5.10% MGS 2029 dropped by only 2 basis points to 103.48% while the bid price of the 5.2% MGS 2031 dropped 6 basis points to 102.84% but the market price remained unchanged at 102.90%.
  • Following last week’s 6.3% drop, the equity of HSBC Bank Malta closed today’s session 3.7% lower at a 5-week low of €2.60. Last Monday HSBC started trading without the entitlement to the net interim dividend of €0.065 which is payable on 22 August.
  • GO’s equity shed 2.0% to drop back to the €1.00 level on single trade of 1,000 shares. Recently GO announced that during the Forthnet S.A Extraordinary General Meeting held on 3 August, shareholders agreed to postpone the discussion to Thursday 23 August. Forthnet is seeking shareholders’ approval in respect of a number of changes to the Company’s capital structure as well as a minimum of €30 million increase in its share capital. In a separate announcement, Forthnet also confirmed that it is holding talks on a possible ‘consolidation of business activities’ with a new partner.
  • On the other hand, the equity of Simonds Farsons Cisk plc edged 1.5% higher to a 6-week high of €2.03. Two deals totalling 1,200 shares took place during this morning’s session. The company will be publishing its July interim results by the end of September.
  • The only other active equity was Bank of Valletta plc. BOV failed to maintain the €2.10 level and closed the day unchanged at €2.08. A total of 11,660 shares were traded during this morning’s session.
  • Until the end of August, ten equity issuers have to publish their interim results. The next company to issue its interim figures is Lombard Bank Malta plc. The results will be announced on 23 August. These will be followed by MIDI plc (27 August), FIMBank plc (28 August) and Grand Harbour Marina (29 August).