Daily Market Highlights (20.09.2011)

  • MSE Share Index retreated for the third consecutive session as it was dragged lower by index heavy-weight HSBC which fell to a fresh 2-year low of €2.60. GlobalCapital was the only positive performer as it jumped back to the €1.00 level whilst BOV closed unchanged. Download a copy of today’s Equity Market Summary .
  • European bonds rose for the second day as European Union and International Monetary Fund officials prepared to assess whether Greece can meet the conditions for its rescue amid concern the nation will default. German yields also dropped following another sign that the euro zone debt crisis is getting worse as Italy’s credit rating was lowered by Standard & Poor’s, the country’s first downgrade in five years. The appeal for safer assets pushed ten year German yields down to 1.739%.Meanwhile, Italian bond prices declined and 10-year bond yield rose to 5.63%, just below its August peak of 6.4%. In line with the decline in German yields, the Central Bank of Malta stockbroker continued to raise the bid prices of the Malta Government Stocks with the Rizzo Farrugia MGS Index adding 0.1% to 994.083 points. The price of the 5.25% MGS 2030 rose by 32 basis points to 103%.
  • BOV’s share price closed unchanged once again at the €2.50 level after it touched an intra-day high of €2.505. Lower volumes amounting to 19,674 shares were exchanged this morning across 20 trades with lowest offers now placed at €2.59. Best bids stand above the current share price at €2.502. Last week circa 40 investors submitted a fresh judicial protest against the bank with respect to alleged mis-selling of investments. The MFSA has confirmed that it is currently investigating a number of complaints in this regard.
  • HSBC’s equity slipped by a further 3.3% to close at a 25-month low of €2.60 on increased selling pressure. High volumes totalling 32,638 shares were exchanged across 12 transactions. Lowest offers are now placed at €2.70 with further bids remaining unsatisfied at the closing level.
  • GlobalCapital’s share price doubled this morning when 3,787 shares were traded at the €1.00 level. The share price has been trading at an all-time low of €0.50 since 27 June. On 25 August, GlobalCapital plc published its 2011 interim results which revealed a net loss after tax of €1.6 million compared to a loss of €1.4 million for the equivalent period in 2010. The loss was mainly attributable to fair value losses amounting to €0.9 million reflecting the downturn in the capital markets. Further details available here.
  • Tomorrow is a public holiday and therefore no trading will be held. The Malta Stock Exchange will re-open for trading on Thursday 22 September.