Daily Market Highlights (17.06.11)

  • Fourth consecutive decline in the local equity market on further declines in BOV’s equity. MSE Share Index down another 0.5% today to a new 1-month low of 3,326.047 points as BOV’s 2.3% plunge offsets the minimal recovery in GO. The Share Index was dragged 1.4% lower this week particularly due to the downturn in BOV and to a lesser degree the declines in the other large cap equities, namely HSBC, MIA and GO. At the other end, the three best performers of the week were 6pm Holdings (+6.7%), RS2 Software (+6.2%) and Plaza Centres (+5.3%). Download a copy of today’s Equity Market Summary.
  • Meanwhile on the bond market, the Rizzo Farrugia MGS Index climbed 0.2% this week to 977.274 points – the highest level in June. This recovery was as a result of the decline in the benchmark Eurozone yields to below the 3% level as debt contagion fears from a possible Greece sovereign debt restructuring intensified.
  • BOV’s share price dropped another 2.3% lower today to a fresh 11-month low of €2.60 across 25 trades totalling over 34,100 shares. Selling pressure in the equity intensified at the start of today’s trading session but during the latter stages, fresh bids entered the market and are already placed higher at €2.62 with lowest offers at the €2.65 level. Earlier this week the Malta Financial Services Authority imposed  an administrative penalty on the Bank and its wholly owned subsidiary, Valletta Fund Management Ltd, amounting to just under €350,000 relating to the La Valette Multi-Manager Property Fund. BOV announced that it will be appealing the decision. Further details available here. BOV’s equity ended the week 5.1% lower.
  • Despite a marginal recovery in GO plc’s share price to the €1.365 level, the equity still ended the week 0.4% lower representing the second consecutive week of declines. Offers already placed lower at €1.36 whilst best bids in the market at the €1.325 level. Forthnet’s share price has recovered from yesterday’s all-time low of €0.29 to the current €0.33 level. The equity remains volatile as the market await developments with respect to its debt restructuring negotiations with the banks.
  • MIA share prices recovered from an intra-day low of €1.72 to close unchanged at the €1.73 level on volumes of almost 16,000 shares. Best bids still outstanding at €1.70 whilst lowest offers now pitched at the €1.74 level. Equity closed the week 0.6% lower.
  • The only other active equity today was RS2 Software as another 4,900 shares changed hands at the €0.53 level representing a weekly rise of 6.2%. Further offers unsatisfied at the closing price whilst best bids placed at the €0.50 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.