Daily Market Highlights (23.09.11)

  • MSE Share Index edges a further 0.3% higher today to close at 3,090.282 points mainly due to the positive performances in HSBC and BOV. RS2 Software also in positive territory as the equity hit a new 21-month high whilst Lombard Bank and GO slipped lower with MaltaPost unchanged after touching a new 11-month low. Throughout this week, the MSE Share Index dropped 1.4% following weekly declines in most of the large cap equities, namely HSBC, IHI and GO. Download a copy of today’s Equity Market Summary.
  • The Central Bank of Malta further raised its Malta Government Stock bid prices as Eurozone yields remained at all-time lows on the back of persistent concerns on the Eurozone’ debt crisis and a looming global recession. As a result the Rizzo Farrugia MGS Index climbed a further 0.2% which resulted in a weekly increase of 0.6%.
  • During this morning’s trading session GO’s share price slumped to a new all-time low of €1.05 before the equity partially recover and closed at the €1.12 level representing a 1.8% drop from the previous close. Almost 48,000 shares changed hands today with most trades executed at the €1.05 level. GO’s equity slipped 6.7% lower this week following 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. GO’s equity now ranks as the worst performing equity since the start of 2011 with a year to date plunge of 42.1%.
  • MaltaPost also touched an 11-month low of €0.90 today before rising again to close unchanged at the €0.979 level across activity of 3,300 shares.
  • On the other hand, a single trade of 10,000 RS2 Software shares lifted the equity 3.5% higher to a new 21-month high of €0.60 thereby reinforcing the equity’s position as the best performing equity this year. In fact RS2’s equity is one of just three positive performers this year with a year-to-date rise of 25%.
  • HSBC recovered some of this week’s earlier declines as its share price edged 1.2% higher to €2.63 across three trades totalling 4,500 shares. Despite today’s upturn, the Bank’s equity still closed the week 2.6% lower.
  • Meanwhile BOV’s share price edged another 0.4% higher this morning to regain the €2.53 level – representing a 1.2% weekly increase.
  • Lombard Bank eased 0.8% lower today to €2.679 on a single deal of 1,500 shares. Offers already placed lower at €2.67 with highest bids at the €2.60 level.