Daily Market Highlights (14.07.11)

  • MSE Share Index registers marginal gains for the third consecutive day as weak volumes still characterise local trading sessions. The local equity benchmark today inched minimally higher to 3,321.757 as the increases in the share prices of BOV and Middlesea outweighed HSBC’s 0.7% drop. Meanwhile RS2’s equity remained well supported at the €0.53 level. Download a copy of today’s Equity Market Summary.
  • European financial markets continued to calm down following the wide-spread panic earlier this week. As a result, Eurozone yields recovered further to reach the 2.73% level. In line with this, the Central Bank of Malta Stockbroker lowered its Malta Government Stock bid prices resulting in a further 0.1% drop in the Rizzo Farrugia MGS Index to 979.104 points. Internationally, the focus has now shifted onto the United States following Moody’s warning to downgrade the country’s long-term credit rating of ‘Aaa’ if it fails to raise its current debt ceiling of US$14.3 billion, a step deemed necessary for the US Treasury to meet a debt payment on 2 August.
  • For the third consecutive session this week, trading in RS2 Software plc shares took place at the €0.53 level. A further 55,000 shares changed hands today following the 134,200 shares traded in the previous two sessions. In its last communication to the market in May 2011, the Company revealed that the new contracts concluded in the first quarter of 2011 with new clients already met the targets set by the Company for the whole year. RS2 Software now services clients from 28 countries which in turn serve banks and institutions in all regions of the world. In his address at the Annual General Meeting the CEO designate Mr Radi El Haj explained that RS2 will focus heavily on the Chinese and the US markets in the coming years. Mr El Haj stated that RS2’s payment solution system called BANKWORKS has significant potential in the American market notwithstanding the market’s maturity level and fierce competition.
  • BOV reversed most of yesterday’s decline as its share price edged 0.7% higher to regain the €2.698 level. Three trades totalling 4,300 shares transacted this morning with offers already placed minimally below the last closing price. Earlier this week Minister of Finance Tonio Fenech revealed that BOV has comfortably passed the EU-wide stress test and also ranks amongst the best capitalised banks in Europe. Full details of the results should be published tomorrow afternoon.
  • Meanwhile HSBC failed to hold on to yesterday’s 1% rise as it share price slid 0.7% back to the €2.93 level across three trades amounting to 3,750 shares. Further bids unsatisfied at the closing price whilst lowest offers now pitched at the €2.95 level.
  • Middlesea Insurance regained the €1.00 level (+2%) on volumes of 5,500 shares with further offers unsatisfied at the last trading price. Market still awaits further details on the acquisition price of Munich Re’s 19.9% shareholding by Mapfre Internacional and the subsequent mandatory offer for the remaining shares to be launched by Mapfre.