Daily Market Highlights (30.10.12)

  • The MSE Share Index in negative territory for the first time in six sessions with a 0.2% drop to 3,265.067 points following declines in the share prices of HSBC and Middlesea which offset the increases in the share prices of MIA, Lombard and Crimsonwing. Meanwhile the other three active equities, including BOV, ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index moved higher for the fourth consecutive session to reach a new two week high of 996.729 points. This reflects the continued decline in Eurozone yields which re-tested near 3-week lows of 1.45% this morning. However, benchmark 10-year German Bund yields recovered by this afternoon to regain the 1.48% level as demand for safe-haven assets eased after a successful Italian bond auction. Italy managed to sell a total of €7 billion in a combination of 5 and 10-year bonds at the lowest cost since May 2011 in spite of the recent political uncertainty created by threats from former Italian Prime Minister Silvio Berlusconi to bring down Mario Monti’s government.
  • Tomorrow marks the closing of subscriptions for the three new Malta Government Stocks. The new stocks and the respective prices are as follows: 3.75% MGS 2017 (IV) FI at 105.00% (YTM: 2.633%); 4.3% MGS 2022 (II) FI at 102.50% (YTM: 3.982%); 4.8% MGS 2028 (I) at 100.75% (YTM: 4.732%). The total aggregate amount on offer is of €100 million subject to an over-allotment option of up to a further €40 million.
  • The share price of MIA advanced by 1.1% today to close at a fresh 3-month high of €1.77 level across five trades totalling 5,800 shares. The airport operator is expected to publish the October traffic results next week. During the first nine months of 2012, MIA registered a 4.1% rise in passenger numbers to just below 2.9 million passenger movements. The airport operator is expected to achieve its third consecutive record of passenger movements.
  • Crimsonwing also hit a new 15-month high of €0.35 on a single deal of 15,000 shares. Last week, the Crimsonwing Group revealed expectations of improved performances in the future with the target of reaching the €2 million pre-tax profit figure by the next financial year ending 31 March 2014. Crimsonwing also announced that it was awarded new international contracts by Mothercare, Mastermate and the Rezidor Group.
  • The other positive performer today was Lombard Bank with a 0.5% increase to regain the €1.87 level on increased volumes of 59,000 shares. Towards the end of the session new bids were placed at €1.88 with lowest offers at €1.90.
  • Meanwhile, BOV closed unchanged at the €2.498 level as the equity again failed to hold on to an intra-day high of €2.50. Volumes decreased from yesterday’s level of 150,000 shares to a total of 23,385 shares across twenty two trades. The Bank’s shares are trading with the entitlement to the final gross dividend of €0.13 per share and to the 1 for 9 bonus share issue.
  • HSBC’s share price slid 1% lower back to the €2.77 level across two trades totalling 1,150 shares.
  • Similarly, the equity of Middlesea Insurance eased 1.3% lower to the €0.74 level on volumes of 5,000 shares.
  • GO maintained the €1.01 level on low volumes of 2,468 shares. Yesterday, certain international media reports revealed that WIND Hellas Telecommunications S.A. has tabled a bid for the telecoms division of Forthnet S.A. Last week, Forthnet had announced that it is in discussions with WIND Hellas on a potential consolidation of business activities and strategic alliance.
  • MaltaPost traded unchanged at the €0.72 level across 1,541 shares. Last week, its major shareholder, Redbox Ltd (a wholly owned subsidiary of Lombard Bank) announced that it intends to raise its current stake of 67.72% to not more than 74.5%.