Daily Market Highlights (16.06.11)

  • Negative run in local equity market persists as BOV faces record fine and European sovereign crisis escalates. MSE Share Index forced a further 0.5% lower to its lowest level this month of 3,342.429 points following declines in the share prices of BOV, HSBC, GO and Crimsonwing. Meanwhile Plaza and 6pm close in positive territory and RS2 maintains the €0.53 level. Download a copy of today’s Equity Market Summary.
  • Sharp downturn in benchmark Eurozone yields this morning back to the 2.92% level on intensified fears over the contagion effects of a Greek sovereign debt restructuring. As a result, the Rizzo Farrugia MGS Index climbed 0.2% to 976.278 points.
  • BOV’s share price down 1.5% during this morning’s session to €2.66 as the Bank and its wholly owned subsidiary, Valletta Fund Management Ltd, were yesterday handed an administrative penalty amounting to just under €350,000. The Malta Financial Services Authority listed a number of breaches mostly related to the application of investment restriction (v). BOV announced that it will be appealing the decision. Further details available here. Ten trades executed today amounting to over 14,300 shares with further bids unsatisfied at the closing price whilst lowest offers now pitched at the €2.69 level.
  • HSBC also dipped 0.6% lower to €2.93 but on lower volumes of 350 shares. Best bids in the market at €2.92 whilst lowest offers placed at the €2.94 level.
  • Negative trend also in GO as the equity hits an intra-day low of €1.34 before partially recovering to a close of €1.36, representing a 0.7% drop from the previous day’s price. Five trades totalling 6,000 shares transacted today. Similar trend in Forthnet as the Greek telecoms operator is currently in advanced negotiations with its bankers to extend the maturity of its outstanding debt. The share price of Forthnet today hit a new all-time low of €0.29.
  • Meanwhile Plaza Centres’ share price lifted 5.3% higher to the €1.79 level on a single trade of 3,000 shares. Best bids now in the market at €1.70 whilst lowest offers still pitched at the €1.80 level.
  • On the IT front, 6pm recovered some of its recent declines as new bids helped the equity rise 6.7% back to the GBP0.32 level across two trades amounting to 20,000 shares. Earlier this week the IT Group announced that it subscribed to 25% of the issued share capital in a newly incorporated company, emCare360 Limited. Further details on this investment available here.
  • On the other hand, Crimsonwing eased 4.4% lower to a fresh 18-month low of €0.35 ahead of the Group’s results publication for the financial year ended 31 March 2011 due by the end of July.
  • RS2 Software also active today as a further 10,000 shares change hands at the €0.53 level, unchanged from the previous close. Bids now emerging at €0.50 whilst lowest offers placed at the €0.55 level. During this week’s Annual General Meeting, RS2’s Chairman Mr Reinhold Schäffter announced that with effect from January 2012 he will be succeeded by the current CEO Mr Mario Schembri who in turn will be replaced by Mr Radi El Haj. The latter has been with the company for the past fifteen years and currently heads the business development team.