During today's trading session on the Stock Exchange, the share prices of the two large banks continued to recover but the main highlight was the high trading activity that took place across a number of Malta Government Stocks as the bid prices quoted by the Central Bank of Malta stockbroker soared in line with the drop in Eurozone yields to a new nine-month low of close to 2.4 per cent. This helped the Rizzo Farrugia MGS Index climb 0.3 per cent to 984.976 points – the highest level since January 20.
The crisis surrounding the eurozone debt markets widened in recent hours with 10-year bond yields of Spain and Italy rising to record level of over six per cent. Italian authorities are holding a meeting to discuss ways on how to prevent the country's cost of debt to rise to unsustainable levels.
On the local market, the bulk of today's trading activity amounting to €5 million was centred around the 5.25 per cent MGS 2030 (I) with over €3 million (nominal) changing hands. Although the indicative bid price of the Central Bank was initially set at 103.29 per cent (up 0.48 percentage points from the previous bid price), the initial trades took place at 103.19 per cent and the price eased to a close of 102.95 per cent in response to the substantial offers coming to the market.
On the local equity market, the MSE Share Index gained 0.7 per cent to 3,288.819 points as the share prices of the two large banks continued to recover. Bank of Valletta plc advanced by a further 2.3 per cent to regain the €2.69 level across seven trades totalling almost 8,000 shares. Meanwhile, the shares of HSBC Bank Malta plc had a volatile session. The share price initially climbed to €2.98,5 but the equity failed to hold on to this level as fresh offers entered the market. HSBC closed at the €2.90 level representing a 0.5 per cent rise over the previous close on activity of over 19,500 shares.
The other six active equities all closed unchanged on low volumes with the exception of MaltaPost plc. The postal operator held on to the €1 level with activity rising to over 47,000 shares. Meanwhile Plaza Centres plc and RS2 Software plc shares continued to trade at their 2011 highs of €1.80 and 55c.
This afternoon Middlesea Insurance plc announced that following the special trade affected on the Malta Stock Exchange whereby Mapfre Internacional S.A. acquired 18.3 million shares from Munich Re at 63c per share, the company has accepted the resignation of the Director Dr Michael Sparberg who was previously appointed by Munich Re. No replacement has been nominated as yet while details of the takeover bid to be launched by Mapfre are still forthcoming.