Daily Market Highlights (24.10.12)

  • Local equity market in positive territory again today as the MSE Share Index edged 0.2% higher to 3,181.216 points following increases in the share prices of HSBC, BOV and Plaza. On the other hand, Lombard traded whilst MIA and Plaza ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index retreated for the third consecutive session with a further minimal decline to yet another 5-week low of 993.851 points although Eurozone yields slipped back to just above the 1.55% level. Benchmark German bund yields slid lower this morning as markets expect overwhelming demand for a 10-year Bund auction given the deepening downturn in Eurozone business activity. However, this afternoon, Eurozone yields partially recovered (although they remained below the 1.6% level) following the publication of economic data which showed that Germany’s private sector shrank by more than expected for the sixth consecutive month.
  • Tomorrow afternoon, the Treasury is expected to publish the prices of the upcoming issue of 3 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €40 million. The 3 new stocks are: (i) 3.75% MGS 2017 (IV) (Fungibility Issue); (ii) 4.3% MGS 2022 (II) (Fungibility Issue) and (iii) 4.8% MGS 2028 (I). Subscriptions will open on Monday 29 October.
  • High volumes of over 59,500 shares changed hands across BOV during this morning’s trading session ahead of Friday’s full-year results publication. The Bank’s share price edged minimally higher today to close at the €2.301 level for the first time since early September. On Friday, BOV is also expect to recommend the payment of a final dividend for approval by shareholders at the upcoming Annual General Meeting in December.
  • Relatively high trading activity was also recorded in MIA with 34,672 shares changing hands at the €1.75 level, unchanged from the previous close.
  • A single trade of 15,000 Plaza shares was executed at the €0.525 level representing a 2.9% increase from its nine-month low. In the recently published Interim Directors’ Statement, the Directors reported that average occupancy in the first nine months of 2012 had dropped to 87% but this was due to the termination of a lease for a significant area within the complex. Nonetheless, the Directors also confirmed that negotiations with potential new tenants for this area are already on-going.
  • Meanwhile, only a small deal of 1,500 HSBC traded this morning as the equity edged 0.7% higher to regain the €2.72 level. Also in the financial sector, Lombard Bank Malta plc retreated by 0.5% to €1.86 on volumes of 6,000 shares.
  • The only other active equity, GO, ended the session unchanged at the €0.99 level across two trades totalling 5,900 shares.