Daily Market Highlights (14.08.12)

  • Activity across the local equity market remained subdued ahead of tomorrow’s public holiday. Despite the low volumes, the MSE Share Index advanced by 1.1% from yesterday’s 10-week low to close at 3,040.515 points as HSBC and BOV both traded higher. Download a copy of the equity market summary here.
  • On the local bond market, the Rizzo Farrugia MGS Index eased lower from yesterday’s 11-month high as the Central Bank of Malta adjusted most of the bid prices downwards as eurozone yields increased reflecting the better-than-expected economic data from Germany and also France. The indicative bid prices of the large majority of the Malta Government Stocks declined today with the longer-dated ones showing the greatest drops. The bid price of the 5.10% MGS 2029 dropped by 33 basis points to 103.15% while the bid price of the 5.2% MGS 2031 suffered a 34 basis point decline to 102.50%.
  • The equity of HSBC Bank Malta recovered from yesterday’s 5-week low to close 1.9% higher at €2.649 on weak volumes of only 1,989 shares. HSBC is scheduled to pay the net interim dividend of €0.065 on 22 August.
  • Bank of Valletta plc recovered most of last Friday’s drop as the equity gained 2.9% to €2.14 amid weak volumes of a mere 2,370 shares.
  • Meanwhile Lombard Bank ended lower as the share price dropped 1.4% to its lowest level since December 2005. Only 950 shares traded at €2.15 ahead of the interim results publication on on 23 August
  • The only other active equity was Plaza Centres plc as a further 9,900 shares changed hands at €0.55.  The interim results published on 31 July revealed that Plaza generated a record profit after tax for the first half of the year of €0.423 million as occupancy remained high despite the 1,700 sqm increase in rentable area in March 2011. However, in the Interim Directors’ Statement published in May 2012, Plaza had indicated that occupancy levels may drop at the end of August 2012 due to the termination of a lease of an office tenant occupying a large area. The company re-iterated that it is currently negotiating new lease contracts for this area.