Daily Market Highlights (25.07.12)

  • MSE Share Index back into positive territory as it edged 0.2% higher to 3,129.245 points on the back of increases in the share prices of BOV, GO and MIA. Meanwhile HSBC, FIMBank and MIDI traded lower. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased by 0.1% to 992.097 points reflecting this morning’s marginal increase in Eurozone yields. By this afternoon, the benchmark 10-year German Bund yields surged to the 1.3% level after EU officials stated that it is highly likely that more Greek debt will need to be restructured as the country will not be able to meet the bailout conditions. This triggered fresh speculation that Greece will have to exit the euro which in turn will negatively impact the already ailing Eurozone countries, namely Spain and Italy. Moreover, German statistics issued today revealed that German business confidence is at its lowest levels in more than two years highlighting the slowdown in Europe’s principal economy and its weakening defences against the prevailing crises in the region.
  • HSBC’s four day positive run was halted today with the share price easing 0.1% lower to €2.895 across three trades totalling 21,282 shares. The Bank’s equity has rallied by 16.7% in the last four weeks on sustained demand for these shares ahead of the Bank’s interim results publication and the interim dividend declaration scheduled for this Friday 27 July.
  • Meanwhile, BOV’s share price moved in the opposite direction as it reversed yesterday’s 1.4% decline with a 1.5% rise to regain the €2.09 level across seven trades totalling 10,360 shares. Yesterday, BOV announced the appointment of Mr Frederick Mifsud Bonnici as the new Chairman.
  • MIA’s share price edged 0.3% higher to €1.785 (minimally below the equity’s 2012 high of €1.79) on the last day the shares traded with the entitlement to the net interim dividend of €0.03 per share. Three trades totalling 60,000 shares changed hands today. The half-year results for the six months ended 30 June 2012 revealed a 13% increase in net profit to €4.48 million. The airport operator also announced a revised forecast for the 2012 passenger numbers which are now expected to grow by 1.5% to a new record of 3.56 million passenger movements. Further details on results available here.
  • GO shares also edged 1% higher to €1.06 across two trades totalling 3,000 shares. Like many other listed companies with a December year end, the quad play telecom operator still has to announce the date of its interim results publication.
  • A new all-time low for MIDI’s equity as 60,000 shares changed hands at the €0.29 level representing a 3.3% drop from the previous close.
  • The only other active equity, FIMBank, also closed 1.2% lower at the US$0.85 level across four trades totalling 6,179 shares. Investors continue to await developments in respect of the possible takeover by Burgan Bank.
  • Subscriptions for the new share issue by Malita Investments plc are scheduled to close next Friday 27 July. The company is issuing a total of 20,000,000 new ‘B’ shares for general public subscription at the nominal value of €0.50 with an over-allotment option of a further 10 million shares. Further details on this IPO available here.