Daily Market Highlights (25.05.12)

  • In contrast to the recovery in international stock markets, the MSE Share Index today reversed most of last week’s 0.4% gain with a 0.3% drop back to 2,975.928 points. The downturn reflects the declines across most of the active equities including HSBC and BOV which offset the 1.2% increase in the share price of IHI. Download a copy of the Equity Market Summary.
  • On the local bond market, the Rizzo Farrugia MGS Index edged marginally higher to 989.275 points despite a marginal recovery in Eurozone yields since last Friday. The benchmark yields across Europe edged marginally higher today after Greek polls revealed that the pro-bailout party has an advantage over the other parties ahead of the fresh general elections set to take place in mid-June. This also helped the euro which recovered from last Friday’s multi-year lows against the US Dollar. Nonetheless, concerns over Spain’s banking sector is on the rise following Bankia’s request for a €19 billion bailout. This led to a widening of the spread between the benchmark German Bund yield and the Spanish government yield to a record high of over 500 basis points.
  • BOV’s share price failed to hold on to last week’s close of €2.08 as it dropped 1.4% back to its 30-month low of €2.05 across total activity of 29,680 shares. However bids are already placed higher at €2.055 with lowest offers at €2.079.
  • Following last week’s 0.4% decline, HSBC’s equity retreated by a further 0.4% during this morning’s session to yet another 37-month low of €2.48 on volumes of over 42,900 shares. Best bids in the market at €2.46 with lowest offers now at €2.487.
  • FIMBank also in negative territory today. Equity eases by 1.8% to US$0.835 on volumes of 48,274 shares.
  • MaltaPost’s equity declined by 1% to €0.95 on high volumes amounting to almost 85,400 shares. The postal operator recently published its half-year results revealing a significant drop in profitability to €0.5 million mainly due to a change in tariffs by the Universal Postal Union (UPU) which led to a considerable increase in direct mail costs. Further details available here.
  • Medserv and Grand Harbour Marina also in negative territory as their respective share prices touched new 2012 lows on shallow volumes. Medserv has today paid its final dividend approved by all shareholders at the recent Annual General Meeting.
  • Meanwhile, the equity of IHI was the only positive performer with a 1.2% rise to the €0.85 level across nine trades totalling 18,530 shares.