Daily Market Highlights (01.08.12)

  • Local equity market in negative territory for third consecutive session with the MSE Share Index retreating by another 0.2% to 3,098.615 points. Today’s downturn followed the declines in BOV, MIA, GO and FIMBank which offset HSBC’s 0.4% increase. Meanwhile all the IT listed equities traded unchanged during today’s session. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged a further 0.1% higher to a new 10-month high of 995.337 points as the Central Bank of Malta Stockbroker raised its bid prices. Markets are still focused on the monetary policy meetings of the US Federal Reserve and the European Central Bank (ECB) which are expected to announce further stimulus measures although some scepticism has surfaced since last week’s promise by the ECB President and other EU leaders to do whatever is necessary to save the euro.
  • HSBC’s share price up 0.4% to €2.88 on volumes of just below 18,000 shares. Last Friday the Bank issued its half-year financial statements revealing a 5.7% increase in net profit to €34.5 million reflecting the 2.4% increase in net operating income to a record €99.1 million and the significant decline in impairments to €0.8 million which offset the 5.8% increase in the Group’s cost base. The Directors declared a gross interim dividend of €0.10 per share which represents a 22% increase over the June 2011 interim dividend. The dividend is payable on 22 August to all shareholders as at close of trading on Friday 3 August. Further details available here.
  • Meanwhile  BOV eased 0.2% lower back to the €2.051 level. Seven trades amounting to 11,886 shares took place with sizeable demand building up below the last closing price.
  • The share price of MIA also eased 0.6% lower to €1.74 on a single deal of 142,200 shares with offers already in the market at minimally lower . The airport operator recently revealed a 13% increase in profits to €4.48 million during the first six months of 2012 and an unchanged net interim dividend of €0.03 per share which will be paid on 10 September. Further details on results available here. MIA is shortly expected to publish its traffic statistics for the month of July.
  • A single trade of 43,620 FIMBank shares was transacted today at the USD0.83 level representing a 2.4% drop from the previous closing price. The trade finance specialist is scheduled to publish its half-year results on 28 August. Meanwhile investors await news in relation to the potential takeover by Burgan Bank.
  • Shallow volumes of 252 shares traded in GO with the share price sliding 2.9% back to the €1.02 level. GO still has to announce the date of its interim results publication.
  • No change on the IT front with all IT-related equities active during this morning’s session. RS2 Software held on to the €0.50 level on a deal of 40,000 shares. Lower volumes were traded in Crimsonwing and 6pm Holdings which maintained the €0.26 and GBP0.32 levels respectively.
  • Still no reaction to yesterday’s publication of Plaza’s half-year results as the equity remained inactive. The half-year financials show a 4.9% increase in revenue to a record €1.12 million while costs declined leading to a record pre-tax profit of €685,013, representing a 9.6% increase from last year’s figure. Occupancy remained high at 91% in spite of an increase of 1,700 sqm in rentable area following the completion of the third extension in March 2011. The Directors noted that occupancy is expected to edge lower in the coming weeks following the termination of a lease of an office tenant occupying a large area. However, negotiations with new tenants for this area are already underway. Looking ahead, the Directors expect the Company to maintain the trend reported in the first half of 2012 during the remained of the year. Further details available here.
  • Last week, Malita Investments plc announced that its new share issue was oversubscribed. Malita will be exercising the over-allotment option of the additional 10 million shares and as such it will be issuing and listing 30,000,000 new ‘B’ shares. The Company will be publishing the allocation policy by 2 August in accordance with the Prospectus dated 2 July 2012.