Daily Market Highlights (18.07.11)

  • Local equity market back into positive territory as BOV’s stress test results help the equity recover. MSE Share Index up by 0.4% to 3,302.117 points following increases in the share prices of BOV and RS2 Software. Meanwhile Farsons shares closed unchanged. Santumas Shareholdings active for the first time in over a month. Download a copy of today’s Equity Market Summary.
  • Eurozone yields dropped back to the 2.65% level this morning, as the EU-wide bank stress test results failed to ease concerns on the region’s sovereign debt crisis. This triggered a rise in the bid prices of Malta Government Stocks (issued by the Central Bank of Malta) with the 5.25% MGS 2030 (I) rising by 43 basis points to 102.59%. Overall, the Rizzo Farrugia MGS Index moved 0.2% higher to 981.753 points.
  • Last Friday evening, the European Banking Authority (EBA) published the results relating to the stress tests carried out on 90 European Banks. Bank of Valletta plc (BOV) was again chosen to represent the Maltese banking sector. BOV issued an announcement last Friday explaining that BOV’s Tier 1 Ratio (an indicator of balance sheet strength), decreased marginally to 10.4% under the modelled adverse scenario placing BOV among the soundest EU banks. The BOV Board of Directors claimed that the result is a further external confirmation of the Bank’s strength and resilience. Copy of the BOV detailed results available for download. BOV’s share price reacted positively to this news although volumes were weak. The equity added 1.5% to regain the €2.70 level.
  • In a separate announcement this morning, BOV revealed that it would not be appealing against the administrative penalties imposed by the Malta Financial Services Authority (MFSA) on the Bank and its wholly owned subsidiary Valletta Fund Management (VFM) in relation to the La Valette Multi-Manager Property Fund. BOV also stated that the number of acceptances in the buy-back offer increased to 98% of the investors in the fund. Further details available here.
  • Further demand for RS2 Software send share price to a new 8-month high of €0.54 across three trades totalling 33,000 shares. This follows from the 206,200 shares that changed hands last week. Few offers outstanding at the last traded price with other bids remaining unsatisfied at the €0.53 level.
  • A single trade of 1,000 Simonds Farsons Cisk plc transacted at the €1.70 level, unchanged from the previous closing price. Offers already placed minimally lower at €1.699 whilst best bids still in the market at the €1.68 level.
  • Shares of the close-ended collective investment scheme Santumas Shareholdings active for the first time since 13 June. One deal of 2,000 shares executed today at the €2.10 level which represents a 16% plunge from the previous closing price.