Daily Market Highlights (19.08.11)

  • MSE Share Index in negative territory for the third time this week as it eased another 0.2% lower to 3,124.44 points mainly due to the decline in BOV. RS2 and MaltaPost also traded lower today whilst GO and Lombard edged minimally higher. Meanwhile HSBC and Plaza traded unchanged. The weekly declines in both HSBC and BOV forced the local equity benchmark to shed 1.1% during this shortened 4-day week. Download a copy of today’s Equity Market Summary. Foreign equity markets significantly in the red today for the second day in succession with the FTSE 100 down 1.4%, the DAX sliding by another 2.6% whilst American stockmarkets also expected to open in negative territory as fears of a looming global recession persist. Germany’s DAX Index is heading for a weekly drop of 9.3% with the FTSE 100 in the UK showing a loss of 6% from last Friday’s close. On the other hand, gold has moved to new record highs.
  • In contrast to the equity downturn, the Central Bank of Malta again raised its bid prices for Malta Government Stocks in line with a further drop in Eurozone yields to below the 2.10% level. The Rizzo Farrugia MGS Index climbed a further 0.3% today to a 7-month high of 993.652 points – just 0.83 points below the 2011 high recorded on 10 January 2011. The high volumes registered in the MGS market in recent days were also maintained during this morning’s trading session with another €5.7 million (nominal) changing hands for a weekly total of €20.68 million (nominal). The two most active stocks this week were the 5.7% MGS 2012 (III) and the 6.6% MGS 2019 which together accounted for half of this week’s trading in nominal terms.
  • BOV touched an intra-day low of €2.53 before partially recovering to a close of €2.565 representing a 0.9% decline from the previous close. Sixteen trades totalling 24,244 shares executed today with best bids in the market at €2.53 whilst lowest offers now pitched at the €2.589 level. Equity ended the week 1.7% lower. This afternoon the Malta Stock Exchange announced that the recently issued €40 million Notes of BOV have been admitted to the Official List today with trading expected to commence as from next Monday.
  • HSBC failed to recover from yesterday’s 22-monht low as a further 9,915 shares changed hands at the €2.70 level. The equity ended this shortened week as the worst performer with a 2.2% drop. The Bank is scheduled to pay its recently declared gross interim dividend of €0.082 per share on 24 August.
  • Lombard Bank continued to remain supported at €2.70 as a further 13,000 shares trade at this level. The Bank is scheduled to publish its half-yearly financial statements next Tuesday 23 August.
  • GO’s share price also moved marginally higher to regain the €1.255 but still ended the week 0.4% lower. Market now awaiting the publication of the Group’s interim results together with the results of Forthnet in which GO has an indirect investment.
  • RS2 Software eased from its 2011 high of €0.56 as the equity was active for the first time this week. 11,800 shares changed hands today at the €0.55 level. Best bids placed at €0.54 whilst lowest offers now at the €0.58 level. In terms of the Listing Rules, RS2 will need to publish its half-year financial statements by the end of August.
  • MaltaPost’s share price dropped 1% to a new 8-month low of €0.99 across two trades totalling just over 8,300 shares. In its Interim Statement published yesterday, the postal operator explained that the overall turnover figures are marginally higher compared to those in the corresponding period last year whilst profitability on normal trading activity is in line with the comparative period. Further details available here.