Following renewed international concerns on the sustainability of European sovereign debt, especially in Ireland, the benchmark 10-year Eurozone yield dropped back to the 2.3% level this morning. As a result, the Central Bank of Malta stockbroker raised its bid prices across most Malta Government Stocks. The bonds with maturities ranging from 10 to 12 years reached new highs. The 4.6% MGS 2020 advanced by 59 basis points to 106.87% on high volumes exceeding €600,000 (nominal) with the 5.1% MGS 2022 adding 75 basis points to 111.13%.

Moreover the bid price for the 5.25% MGS 2030 (I), which was recently issued at par, was increased by 76 basis points to 104.53% - just 13 basis points below its all-time high. Significant volumes registered in the 20-year Government paper with almost €2.5 million changing hands across 70 deals.

On the contrary, trading activity dried up in the local equity market with volumes only amounting to a value of just over €30,000. The MSE Share Index edged 0.3% higher today to 3,372.544 points on the back of increases in the share prices of HSBC Bank Malta plc and Malta International Airport plc.

HSBC edged 0.7% higher to €2.86 on a single trade of 3,000 shares while the share price of the airport operator rose by 1.3% to regain the €1.54 level across 3 trades totalling 5,593 shares. Meanwhile Bank of Valletta plc closed unchanged at the €3.24 level on volumes of 3,961 shares.

Tomorrow, Simonds Farsons Cisk plc is scheduled to publish its financials for the first six months of its financial year ended 31 July 2010.

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