Daily Market Highlights (28.09.12)

  • MSE Share Index climbed higher for the third consecutive session with a further 0.3% higher to a new 10-month high of 3,135.815 points as GO and Middlesea Insurance trade higher. On the other hand, Lombard slid to yet another 7-year low whilst Malita traded unchanged. Download a copy of the Equity Market Summary.
  • Today marks the end of the third quarter of this year during which the MSE Share Index climbed by 3.8% to 3,135.815 points mainly due to the increases in the share prices of BOV (+10%) and HSBC (+8.8%). Meanwhile the major negative performers during the past three months were MIDI (-15.2%), Lombard (-17.3%), GO (-19.2%) and MaltaPost (-22.7%). Trading activity during the summer months across the equity (€7 million) and corporate bond (€11.5 million) markets amply surpassed the activity reported in Q3 of 2011. On the other hand, transactions in MGS amounted to just over €102.1 million compared to €159.5 million reported between July and September last year.
  • On the bond market, the Rizzo Farrugia MGS Index edged marginally higher for the fourth consecutive session to reach a new 1-month high of 997.623 points reflecting the further decline in Eurozone yields to the 1.42% level. This week, the local MGS benchmark edged 0.2% higher reflecting the decline in benchmark 10-year German Bund yields from last Friday’s close of 1.60% to the current 1.42% as demand for safe-haven assets was sustained given the uncertainty on Spain’s decision to ask for a bailout. Moreover, bond yields also dropped in anticipation of the outcome of a review of Spain’s credit rating by Moody’s as well as the upcoming round of bank stress tests.
  • Further demand for GO shares lifted the equity of the quad-play telecoms operator by a further 4.4% during this morning’s session to yet another 1-month high of €0.95 across eight trades totalling 35,000 shares. GO’s share price rallied by 11.8% this week ahead of the Board’s decision on whether GO will participate in Forthnet’s €30 million rights issue. This was meant to be issued by the end of the month.
  • The share price of Middlesea Insurance also closed in positive territory today with a further 9.4% rise to regain the €0.755 level on miniscule volumes of 164 shares. The insurance equity ranks as the best performer of the week with a 16.2% weekly jump.
  • On the other hand, the equity of Lombard Bank continued to sink lower as the share price dropped to a new 7-year low of €1.82 across two deals totalling 2,431 shares.
  • The only other active equity was Malita Investments which maintained the €0.51 level across two trades amounting to 10,800 shares.
  • Simonds Farsons Cisk shares still inactive today despite this earlier announcement revealing a record €3.8 million in profits registered during the six months ended 31 July 2012 as well as unchanged net interim dividend of €0.0133 per share. Nonetheless, it is important to highlight that offers have been raised to the €2.30 level whilst bids remain at the last closing price of €2.20. Further details on results available here.