Daily Market Highlights (30.07.12)

  • MSE Share Index kicks off this week with a 0.3% decline to 3,120.864 points as the gains in HSBC and RS2 are offset by the negative performances of BOV, IHI, MIA and Plaza. Meanwhile, the only other active equity, Simonds Farsons Cisk, ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index was practically unchanged at 992.989 points as Eurozone yields remained close to the 1.40% level. Markets now await the respective monthly monetary policy meetings of the US Federal Reserve on Tuesday followed by those of the Bank of England and the European Central Bank on Thursday. Focus is particularly placed on the ECB’s meeting following last week’s comments by the President of the Bank Mario Draghi committing to do whatever it takes to save the single currency.
  • Also worth noting is the suspension of trading in the 7% GAP Developments plc 2013 bonds after the company failed to publish its financial statements within the required timeframes. Since the notice of the suspension of trading last Friday, the following day the company announced that it will be publishing its financial results for the year ended 31 December 2011 on 2 August 2012 following a meeting of the Board of Directors.
  • HSBC’s share price recovered from an intra-day low of €2.845 to close at the €2.90 level representing a marginal increase over the previous closing price. A total of 17,451 shares changed hands today across twelve trades. 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.
  • RS2 Software shares climbed by 4.2% to regain the €0.50 level across six trades totalling 167,290 shares representing 0.4% of the Company’s issued share capital. The IT Company still has to announce the date of its half-year results publication.
  • Meanwhile BOV failed to hold on to last Friday’s close of €2.10 as fresh offers pushed the Bank’s equity 1% lower back to the €2.08 level. Twelve trades were transacted amounting to 12,323 shares. Last week, BOV announced the appointment of Mr Frederick Mifsud Bonnici as the new Chairman.
  • MIA eased by a further 1.1% back to the €1.75 level after it turned ex-dividend last week. The unchanged net interim dividend of €0.03 per share will now be paid on 10 September.
  • Plaza Centres’ equity also in negative territory with a 4.8% drop to a new 17-month low of €0.55 on a single deal of 4,000 shares. Tomorrow the Company is scheduled to publish its financial statements for the six months ended 30 June 2012.
  • 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.