Daily Market Highlights (16.01.12)

  • Following last week’s 0.5% drop, the MSE Share Index this morning slipped back by a further 0.5% to a new 2012 low of 3,091.136 points. During this morning’s session, the share prices of HSBC and BOV traded lower offsetting the 0.6% increase in GO. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index was again marginally unchanged today at 988.105 points despite last Friday evening’s decision by Standard & Poor’s to downgrade the credit ratings of nine Eurozone countries including Malta. The rating agency stated that its decision is based on its view that the actions taken to counter the prevailing sovereign debt crisis are insufficient.
  • France and Austria lost their triple AAA rating and moved one notch lower to AA+. The ratings of Malta, Slovenia and Slovakia were also lowered by one notch to A-, A+ and A respectively. Harsher actions were taken against Italy, Spain, Portugal and Cyprus as their respective ratings were lowered by two notches. Moreover, the sovereign paper of Portugal and Cyprus is no longer considered as investment grade after being assigned “junk status” ratings of BB and BB+ respectively. The eurozone’s largest economy, Germany maintained its AAA rating.
  • BOV slid 1.3% lower this morning back to the €2.26 level across twenty trades totalling 15,276 shares. Further bids unsatisfied at the closing price with lowest offers at the €2.27 level.
  • Similarly, following last week’s 1.2% drop, HSBC’s share price dipped a further 0.7% lower today to €2.551 on volumes of 3,684 shares. Few other bids remaining unsatisfied at the last traded price whilst lowest offers now pitched at the €2.60 level.
  • Meanwhile GO edged minimally higher to close at the €0.90 level across 7,600 shares. Last Friday, the shareholders of Forthnet S.A. (in which GO has an indirect investment) rejected all the resolutions presented to them during the Extraordinary General Meeting, including a €30 million rights issue in line with the conditions of the restructured debt. Prior to the meeting GO also announced that it was opposing these resolutions.