Daily Market Highlights (17.01.12)

  • Local equity market back into positive territory after two consecutive sessions of declines. MSE Share Index up 0.1% to 3,094.311 points on the back of a 0.4% increase the share price of BOV. Meanwhile the only other active equity, GO, closed unchanged. Download a copy of the Equity Market Summary.
  • On the local bond market, the Rizzo Farrugia MGS Index reversed most of this year’s declines as it edged 0.1% higher to 988.8 points following an increase in the Central Bank’s MGS bid prices.
  • On the international front, following the credit rating downgrade of nine Eurozone countries by Standards & Poor’s (S&P) last Friday, the rating agency yesterday announced that it lowered the credit rating of the European Financial Stability Fund (EFSF) from ‘AAA’ to ‘AA+’. This is a reflection of the reduced creditworthiness of the sovereign states guaranteeing the bloc’s bailout fund. As a result, benchmark Eurozone yields moved marginally higher as they regained the 1.8% level. However foreign equity markets shrugged off the downgrade with most major international indices trading in positive territory today.
  • BOV’s share price advanced by 0.4% to regain the €2.27 level across fifteen trades totalling 32,312 shares. Other offers unsatisfied at the closing price with highest bids placed at the €2.25 level.
  • Meanwhile GO maintained the €0.90 level on low volumes of 3,200 shares. Further bids outstanding at the last traded price with lowest offers now placed at the €0.93 level. 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.
  • This morning MaltaPost held its Annual General Meeting during which shareholders approved all the items on the agenda including the final net dividend of €0.04 per share and the option to take the dividend either in cash or in new shares at the attribution price of €0.98 per share. The cash dividend or allotment of new shares will take place on 30 January 2012. The equity was inactive today with best bids in the market at €0.95 and lowest offers at the €1.00 level – marginally higher than the last closing price.