Daily Market Highlights (17.08.11)

  • Local equity market back into negative territory as the MSE Share Index dropped 0.3% to 3,150.616 points reflecting the declines in BOV, HSBC and GO. Meanwhile the only other active equity, MaltaPost, closed unchanged. Subdued trading activity across local equities persists as local investors maintain focus on bonds. Download a copy of today’s Equity Market Summary.
  • European equity markets decline following yesterday’s comments by German Chancellor Angela Merkel and French President Nicholas Sarkozy. The leaders of the largest eurozone economies called for greater integration in Europe’s fiscal and monetary policies as well as proposing an EU-wide tax on financial transactions. Markets were also disappointed on the lack of concrete short-term proposals to solve the debt crisis.
  • On the local bond market, high volumes were again traded across Malta Government Stocks totalling over €5.8 million. The most active stocks were the 6.6% MGS 2019 and the 4.6% MGS 2010 (II) with €2 million (nominal) changing hands in each stock. Moreover another €1 million (nominal) was transacted in the 5.7% MGS 2012 (III). The Rizzo Farrugia MGS Index was practically unchanged at 987.832 points as the benchmark Eurozone yields floated around the 3.28% level.
  • BOV opened today’s session higher at the €2.62 level. However fresh sell orders pushed its share price back to the €2.59 level representing a 0.8% decline from the previous close. Over 26,000 shares changed hands today with best bids now placed at €2.56 with lowest offers at the €2.60 level.
  • HSBC also eased 0.2% lower to close at the €2.755 level on volumes of 12,500 shares. Other offers unsatisfied at the last traded price with highest bids at €2.753.
  • GO failed to hold on to the €1.26 level as new sell orders pushed the price back to €1.25 representing a 0.8% drop from the previous closing price. Five trades amounting to 4,882 shares exchanged today with other bids outstanding at the last traded price.
  • MaltaPost closed unchanged at the €1.00 level on volumes of 21,000 shares. The postal operator is shortly expected to publish its Interim Statement updating the market on its performance since its financial half-year ended on 31 March 2011. At the interim stage, MaltaPost had reported a net profit of just over €1.1 million representing a 6.1% drop from that registered in the comparable period last year mainly due to higher operating costs.
  • Last week, Mapfre Internacional published its Offer Document in relation to the Mandatory Bid to the shareholders of Middlesea Insurance plc following the acquisition of a controlling interest in the company, in terms of Chapter 11 of the Listing Rules. The Offeror (Mapfre) has offered to purchase all the issued shares in Middlesea Insurance plc at the Offer Price of €0.965 per share. Shareholders of Middlesea Insurance plc who were on the Company’s books as at close of business on Friday 29 July 2011 have the option of selling their holding in Middlesea Insurance plc by completing the Acceptance Form during the acceptance period which runs from 29 August 2011 to 26 September 2011. Further details including a copy of the offer document available here.