The local equity market moved lower this morning with the MSE Share Index declining by 0.47% on the back of the losses in the share prices of HSBC Bank Malta plc (-1.7%) and Malta International Airport plc (-0.6%). On the other hand the share price of Middlesea Insurance plc advanced by 1.7% to a new 2010 high of €1.17 ahead of the interim results publication on 12 August.

The share price of Bank of Valletta plc was volatile throughout the session and closed unchanged at €3.27 after opening 0.9% higher at €3.301 and trading at an intra-day low of €3.25.

As from today the Malta Stock Exchange adopted new procedures with respect to the establishment of trade ranges in the various equities. Trade ranges, which are based on the trade weighted average price (TWAP) of the previous session, have been widened from the current ±7% to ± 10%. The revised policy caters for the temporary lifting of trade ranges in particular circumstances and provides increased flexibility to allow increased activity in a company’s shares.

On the bond market, the main focus was with respect to the allocation policy of Mediterranean Investments Holding plc and the announcement of the new Malta Government Stock issues. In view of the heavy over-subscription of the recent MIH bonds, applications were scaled down and the allocation policy can be viewed from the following link: http://rizzofarrugia.com/news-events/2010/allocation-policy-mih06/

Meanwhile the Treasury announced the issue of 2 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. The 2 new stocks are: (i) 3.75% MGS 2015 (VI) (Fungible Issue) and (ii) 5.25% MGS 2030 (I) (Fungible Issue). Prices of both bonds will be determined on Thursday 29 July ahead of the General Public offering between Monday August 2 and Wednesday August 4.

The Treasury is also offering €30 million in a new fungible stock linked to the 6-month Eurobor. The Floating Rate MGS 2013 (VI) is only available for those investors subscribing for a minimum of €250,000 (nominal) and in multiples of €50,000 thereafter. The floating rate is equal to the 6-month EURIBOR plus 45 basis points (0.45%).

www.rizzofarrugia.com

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