Daily Market Highlights (25.10.12)

  • The MSE Share Index edged 0.4% higher today to close at a new 14-month high of 3,195.274 points on the back of increases in the share prices of HSBC and MaltaPost. Meanwhile all other three active equities ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged higher for the first time in four sessions with a 0.1% rise to 994.473 points reflecting today’s increase in Eurozone yields. Benchmark 10-year German Bund yields today surpassed the 1.6% level on the back of improved investor appetite for risk spurred by the strongest UK GDP quarterly growth in five years. In fact, the UK revealed a better-than-forecast 1% growth in GDP during the third quarter of 2012 fuelled by the increased spending related to the summer Olympic games. As a result, Britain has moved out of recession. Nonetheless, the UK still has a challenging time ahead especially in view of the looming recession in Europe and the slowdown in China.
  • This 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.
  • The share price of MaltaPost recouped some of this year’s 29.1% decline as new bids helped the equity rise by 1.6% to regain the €0.72 level across three trades totalling 3,200 shares. The share price advanced shortly after an announcement was issued by the postal operator as well as by its majority shareholder Lombard Bank Malta plc notifying the market that the Bank intends to increase its shareholding in MaltaPost from the current level of 67.72% to not more than 74.5%, representing a maximum amount of 2.2 million shares.
  • Meanwhile, Lombard’s share price remained unchanged at the €1.86 level on a single trade of 50,000 shares.
  • Likewise, BOV shares closed unchanged at the €2.301 level after failing to hold on to an intra-day high of €2.32 on volumes of 3,900 shares. The Bank is scheduled to publish its full-year results tomorrow. BOV is also expected to recommend the payment of a final dividend for approval by shareholders at the upcoming Annual General Meeting in December.
  • On the other hand, HSBC’s share price edged 1.5% higher to regain the €2.76 level also on low volumes of 2,844 shares.
  • The only other active equity, GO maintained the €0.99 level across eleven trades totalling 18,786 shares.