Daily Market Highlights (22.09.11)

  • Positive performances by MIA, BOV and MaltaPost lead the MSE Share Index marginally higher to 3,079.527 points for the first time in four sessions. On the other hand, GO slumped 5% lower after Forthnet revealed plans to launch a right issue. The other active equity, HSBC, closed unchanged. Download a copy of today’s Equity Market Summary.
  • Eurozone yields slid to a new all-time low of 1.647% following yesterday’s comments by the Federal Reserve stating “significant downside risks” to the U.S. economy coupled with persistent concerns on the Eurozone debt crisis. As a result the Central Bank of Malta raised it Malta Government Stock bid prices leading to a 0.2% rise in the Rizzo Farrugia MGS Index to 995.561 points.
  • GO slumped 5% during this morning’s session to a new all-time low of €1.14 across four trades totalling 9,000 shares with offers already placed lower than the closing price. This follows the revelation of Forthnet’s plans to make changes to its issued share capital. The Greek company will be holding an Extraordinary General Meeting on 27 October 2011 to seek shareholders’ approval to (i) effect a 4 for 1 reverse share split in order to increase the nominal value of the shares from €1.18 to €4.72 and simultaneously decrease the number of issued shares from 155,431,324 shares to 38,857,831 shares; (ii) a reduction in the nominal value of each share from the resultant €4.72 to €0.30 per share in order to create a special reserve of €171.8 million and (iii)  the issuance of 38,857,831 shares with a nominal value of €0.30 per share with the aim of raising at least €30 million of new funds.
  • Meanwhile BOV recovered some of last week’s 3.5% drop as its share price rose by 0.8% to €2.52 across very low volumes amounting to 600 shares. Best bids in the market at €2.51 with lowest offers placed at the €2.59 level.
  • HSBC failed to hold on to an intra-day high of €2.625 as its share price closed unchanged at the €2.60 level on volumes of over 10,000 shares. Other bids unsatisfied at the last traded price whilst lowest offers pitched at the €2.70 level.
  • MIA recovered last week’s 0.7% drop as the equity jumped 1.3% today to regain the €1.53 level on volumes of just over 5,000 shares. Few other offers unsatisfied at the closing price whilst best bids placed at the €1.51 level.
  • Just 40 MaltaPost shares traded today at the €0.979 level representing a 0.9% rise from the previous close. Offers already placed lower at €0.93 with best bids at the €0.90 level.