Daily Market Highlights (31.10.12)

  • The MSE Share Index eased minimally lower today to 3,264.182 points as BOV, HSBC and GO traded lower to offset the 7% jump in Lombard. Download a copy of the Equity Market Summary. The local equity benchmark rose by 4.1% in October (the highest monthly increase this year) to 3,264.182 points as all of the five largest equities by market capitalisation traded higher during the month under review.
  • On the bond market, the Rizzo Farrugia MGS Index slid 0.1% this month to 996.294 points mainly reflecting the downturn in Eurozone yields back below the 1.50% level in the latter part of the month. Initially, benchmark 10-year German Bund yields touched a 4-week high of above 1.66% on the back of the publication of some positive economic data. However, this trend was short-lived as demand for safe haven assets increased following a generally disappointing earnings season as well as continued concerns over Spain, Italy and Greece.
  • This afternoon 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 Treasury is expected to publish the statistics in respect of these new issues on Friday after the tendering process is completed.
  • BOV’s share price retreated by 0.4% today to €2.489 across nine trades totalling 9,127 shares. Out of the five largest equities, BOV was the best performer during the month of October with a 9.9% jump mainly following last Friday’s full-year results publication which revealed a record pre-tax profit of €110.7 million. 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. Further details on results available here.
  • HSBC’s equity also retreated by 0.4% during this morning’s session to €2.76 on a single deal of 2,866 shares. Over the month of October, the share of HSBC registered a 1.1% increase to €2.76 ahead of the Bank’s Interim Directors’ Statement publication by mid-November.
  • GO’s share price today touched an intra-day low of €0.945 before partially recovering to close at the €1.009 level representing a 0.1% drop from the previous close. A total of 18,600 shares changed hands today. GO’s share price registered a 6.2% jump in October ahead of the decision on whether to inject further funds into Forthnet which is seeking to raise fresh capital. The decision has been postponed until Forthnet publishes the relevant Prospectus. Earlier this week, certain international media reports revealed that WIND Hellas Telecommunications S.A. has tabled a bid for the telecoms division of Forthnet S.A.
  • Lombard Bank recovered some of its recent sharp declines with a 7% jump to regain the €2.00 level across two trades totalling 6,870 shares. Today’s upturn led the equity to register a 9.9% rise during the month of October. However the Bank’s equity is still 25.9% below its value at the beginning of the year. Last week, the Bank announced that it intends to raise its current stake in MaltaPost of 67.72% to not more than 74.5%.