Daily Market Highlights (25.06.12)

  • Following last week’s 0.3% drop, the MSE Share Index slid another 0.2% during this morning’s session to 3,044.052 points. Today’s downturn reflects the declines in the share prices of BOV and GlobalCapital which offset the minimal increase in HSBC. Meanwhile the only other active equity, IHI, ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to 985.554 points as the Central Bank Stockbroker significantly lowered its bid prices for the longer-term local government paper. This contrasts with the dip in Eurozone yields to the 1.5% level following an agreement between the leaders of Germany, France, Italy and Spain on a €130 billion package to boost economic growth in the region. Moreover, German Chancellor Angela Merkel maintained her stance against the introduction of Eurobonds or a wider scope for Europe’s rescue funds. Meanwhile hopes of new measures to counteract the prevailing Eurozone debt crisis waned ahead of this week’s EU summit (scheduled to be held on Thursday and Friday) as Spain formally requested a bailout to recapitalise its banking system. As a result, Europe’s main equity benchmarks are in negative territory with the US Dollar strengthening against the euro to below the USD1.25 level.
  • Last Friday afternoon the Treasury published the results relating to the issue of three new Malta Government Stocks. The Treasury announced that it received a total of 5,119 applications for a value exceeding €191.5 million (nominal) compared to the total €180 million on offer. The announcement also revealed that a total of €179.69 million (nominal) was allotted in the three fixed-rate stocks as follows: €48.05 million in the 3.75% MGS 2017 (IV); €52.49 million in the 4.3% MGS 2022 (II) FI and €79.14 million in the 5.1% MGS 2029 (I). Further details available here.
  • BOV’s share price slipped 0.9% to its 2012 low of €2.05 across sixteen trades totalling 35,162 shares. However bids are already placed marginally higher at €2.055 with lowest offers at the €2.07 level.
  • On the other hand, HSBC edged minimally higher to close at the €2.501 level on very low volumes of 4,400 shares. Best bids in the market at €2.50 with lowest offers at the €2.54 level.
  • GlobalCapital shares, active for the first time in four months, plunged 11.7% to a new 2012 low of €0.83 on a small deal of 400 shares. The market is still awaiting developments with respect to ways in which the Company intends to maintain appropriate capital and liquidity levels in order to be in conformity with regulatory minimums. In a December 2011 announcement, GlobalCapital had announced that it intends to take the necessary actions, including a possible increase in equity, in this respect by the end of the first half of 2012.
  • The only other active equity during this morning’s session was IHI with a single trade of 550 shares transacted at the €0.90 level, unchanged from the previous close. Offers now placed below the last closing price at €0.885 with highest bids at the €0.80 level.