Daily Market Highlights (22.07.11)

  • MSE Share Index in negative territory for the fourth consecutive session with a further 0.2% decline to a yet another 20-month low of 3,273.164 points. Today’s downturn was caused by the declines in the as the share prices of MIA, GO, Medserv and RS2 Software which offset HSBC’s 0.7% increase. Meanwhile BOV, Lombard and Island Hotels all closed unchanged. Download a copy of today’s Equity Market Summary.
  • Yesterday, European leaders agreed to provide a new bailout package for Greece amounting to €109 billion. Moreover, the summit of EU leaders also decided to reduce the interest rate on this new lending to around 3.5% as well as extending the maturity of Greece’s loans from 7.5 years to a minimum of 15 years and possibly up to a maximum of 30 years. The private sector will also contribute to this debt restructuring through a number of roll-overs, some of which include a 20% haircut. European leaders also applied the more accommodative rates and maturities to Portugal and Ireland but clearly stated that the private sector will not be involved in these two countries as their situation is not like that of Greece. These decisions further fuelled the recovery in Eurozone yields to reach the 2.90% level.
  • In turn, the Central Bank of Malta Stockbroker lowered is Malta Government Stock bid prices for the fourth consecutive session with the bid price for the 5.25% MGS 2030 (I) reduced by a further 58 basis points to 100.74%. This sharply contrasts with the bid price of 12 July (just 10 days ago) which hit 103.54% after fresh concerns on Italy’s sovereign debt sent shockwaves through European financial markets which had resulted in a severe downturn in Eurozone yields to 2.50%. Overall the Rizzo Farrugia MGS Index tumbled another 0.3% today to 973.285 points, representing a 1.1% drop from the recent peak of 983.696 points on 12 July.
  • On the equity market, HSBC edged higher for the first time this week as the share price rises by 0.7% to €2.89 across five trades totalling 5,470 shares. The Bank is scheduled to publish its 2011 half-year results next Friday 29 July.
  • On the other hand, BOV failed to recover from yesterday’s 1.9% drop, as its share price closed unchanged at the €2.65 level across ten trades totalling 9,164 shares. Equity ended the week 0.4% lower. On Wednesday the Bank announced the issue of €40 million Notes carrying a coupon of 4.8% and maturing in 2018. Further details and copies of all the relevant documentation available here.
  • Also in the banking sector, another trade of 1,000 Lombard shares was transacted at the equity’s 6-month low of €2.67, representing a weekly decline of 6% (the worst performance).
  • Further selling pressure in GO as the equity rescinded 4.4% back to the €1.30 level on volumes of 2,380 shares. Further bids unsatisfied at the closing price whilst lowest offers now placed at the €1.345 level.
  • Malta International Airport also amongst this week’s negative performance despite a further 4.4% growth in passengers during the month of June (the fourteenth consecutive month of growth) resulting in a 12.7% rise in passenger movements during the first half of 2011. Moreover the airport operator revealed that it is now expecting to reach a new record 3.4 million passenger movements in 2011, representing a 3.2% growth over 2010. MIA’s share price today slipped by 2.5% to a new 9-month low of €1.55 on low volumes of 978 shares ahead of the Company’s half-year results publication next Wednesday 27 July.
  • Medserv shares active for the first time in almost three months as a single deal of 1,000 shares was executed during this morning’s session at the €3.85 level representing a 3.8% drop from the previous close.
  • RS2 fails to hold on to this week’s gains with the share price dropping back to the €0.53 level. Three trades totalling 10,000 shares transacted today with other bids amounting to 27,000 shares outstanding at the last traded price.