Daily Market Highlights (24.10.11)

  • Following last week’s 0.6% drop, the MSE Share Index shed a further 0.7% to a new 1-month low of 3,081.616 points as HSBC, BOV and GO all trade lower. Meanwhile, the only two other active equities, namely MIA and Middlesea, closed unchanged. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased 0.1% lower to 984.459 points as eurozone yields moved marginally higher. European leaders failed to agree on a deal to solve Europe’s debt crisis during the weekend’s summit. Further talks will now be held on Wednesday as European leaders continued to discuss the extent of a haircut on Greek debt and the recapitalisation of European banks.
  • BOV’s share price dropped by 0.8% today to a new 2-year low of €2.43 across nineteen trades totalling just over 26,000 shares. Further offers unsatisfied at the closing price ahead of the Bank’s full-year results publication next Friday.
  • Similarly, HSBC slid 1.1% lower to the €2.63 level on volumes of over 6,000 shares. Few other bids outstanding at the last traded price whilst lowest offers now pitched at the €2.658 level. During the second week of November, the Bank generally publishes its Interim Statement covering the third quarter of 2011.
  • Over the weekend, media reports revealed that Maltese banks have limited exposure to Greek sovereign debt with the largest exposure being that of BOV which amounts to €9 million. The reports indicated that Maltese banks will not be in need of a fresh capital injection under an EU plan which is being devised to contain the sovereign debt crisis. However, the same reports noted that local banks have much larger exposures to the other larger countries, mainly Italy and Spain.
  • GO’s equity sinks further as its share price was forced 4.7% lower to a new all-time low of €1.001 across ten trades totalling 42,300 shares. Following this latest downturn, the equity now stands 48.3% below its value at the beginning of the year. GO shareholders now await the outcome of next Thursday’s Extraordinary General Meeting of Forthnet convened for the purposes of approving a number of changes to the capital structure as well as a €30 million rights issue.
  • Meanwhile MIA held to the 8.3% rise registered over the past two weeks as a further 1,100 shares changed hands at the €1.70 level. Other offers unsatisfied at the closing price whilst best bids now placed at the €1.54 level. Last week MIA raised its passenger growth forecast for the second time this year. Following the arrival of the three millionth passenger, the airport operator announced that it is now expecting at least a 4.5% growth in passengers compared to the previous forecast of 3.2%. Further details available here.
  • The only other active equity, Middlesea also closed unchanged at the €0.92 level on volumes of 2,000 shares.