Daily Market Highlights (19.01.12)

  • Further volatility in the MSE Share Index as the local equity benchmark moves back into positive territory with a 0.1% rise to 3,090.135 points. MIA traded higher whilst BOV, Lombard, GO and Island Hotels Group ended this morning’s session unchanged. The only other active equity, HSBC, edged minimally lower. Download a copy of the Equity Market Summary.
  • On the local bond market, the Rizzo Farrugia MGS Index dropped by a further 0.1% to 986.968 points as Eurozone yields regained the 1.8% level. Across European stockmarkets sentiment was bolstered by the successful bond auctions of long-term sovereign debt paper by Spain and France. Spain sold €6.6 billion of sovereign bonds far exceeding the required €4.5 billion. Similarly, France received bids of €18.9 billion compared to the maximum €8 billion on offer.
  • Fresh bids lift MIA’s share price a further 1.7% higher to the €1.75 level on volumes of 6,400 shares. Following today’s upturn, the equity of the airport operator is heading for the third consecutive positive week this year. The 3.6% rise since the start of 2012 follows the company’s announcement which revealed a 6.5% increase in passenger numbers during 2011 to a new record of 3.5 million passenger movements as well as last week’s announcement of the 7 new routes by low-cost carrier Ryanair.
  • HSBC’s share price eased minimally lower back to the €2.55 level on volumes of 2,000 shares. Other bids outstanding at the last traded price with lowest offers at the €2.60 level.
  • BOV again failed to hold on to an intra-day high of €2.26 as the equity closed unchanged at the €2.25 level across seven trades totalling almost 4,000 shares. Further offers unsatisfied at the closing price whilst best bids pitched at the €2.24 level.
  • Similarly, a further 13,450 Lombard Bank shares traded unchanged at the equity’s 15-month low of €2.55. Best bids in the market at €2.502 whilst lowest offers at the €2.60 level.
  • GO also unchanged at the €0.95 level across six trades totalling 7,625 shares. Last week, 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. The market now awaits further news on the future of Forthnet following the rejection of the resolutions at the EGM.
  • Island Hotels Group shares active for the first time since 28 October 2011. Share price unchanged at the €0.85 level on a single trade of 1,200 shares with offers in the market already placed lower at the €0.84 level.