Daily Market Highlights (22.12.11)

  • Local equity market back into negative territory as the MSE Share Index was dragged marginally lower to 3,074.320 points following a 2% drop in GO’s share price which offset the 0.3% rise in BOV. Meanwhile the two other active equities, FIMBank and MaltaPost, closed unchanged at USD0.77 and €0.98 respectively. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index slipped another 0.1% lower to 984.150 points reflecting the marginal increase in eurozone yields this morning. EU benchmark yields registered increased volatility yesterday as the initial euphoria with respect to the higher-than-expected €489 billion 3-year loans by the European Central Bank (ECB) to euro-area banks was offset by worries over the extent of euro-banks’ liquidity needs.
  • Another volatile session for FIMBank shares. Earlier on this week, FIMBank’s share price slumped 9% on Tuesday to a 2-month low of US$0.70 but recovered by 10% the following day to regain the US$0.77 level. The equity closed today’s session unchanged at the US$0.77 level after recovering from an intra-day low of US$0.74. A total of 33,000 shares changed hands today with best bids still placed at US$0.70 and lowest offers at the €0.78 level.
  • GO closed in negative territory today as its share price retreated by 2% on very low volumes of 400 shares with few other offers unsatisfied at the closing price. GO’s equity slumped 49.4% since the start of 2011 as investors shunned the equity on the back of increasing concerns with respect to the indirect investment in Forthnet which continued to register losses and also restructured its bank borrowings. Forthnet is now scheduled to hold an Extraordinary General Meeting on 13 January 2012 asking shareholders to approve a number of changes to its capital structure and a €30 million rights which has to be completed by the end of next month as per the conditions on the debt restructuring.
  • Meanwhile, BOV shares ended today’s session in positive territory despite failing to hold on to an intra-day high of €2.52. Equity closed 0.3% higher at the €2.50 level across eight trades totalling 6,120 shares. The bank’s shares are still trading with the entitlement to the approved 1 for 8 bonus issue. The Bank’s shares will start trading ex-bonus as from 10 January.
  • MaltaPost holds on to the €0.98 level as the equity trades for the fifth successive session. A further 17,379 shares changed hands today with best bids in the market at €0.95 and lowest offers at the €0.99 level. The postal operator is scheduled to hold its Annual General Meeting on 17 January for shareholders to consider and approve a number of resolutions including the final net dividend of €0.04 per share and the scrip dividend option with an attribution price of €0.98 per share.