Daily Market Highlights (31.07.12)

  • MSE Share Index sheds a further 0.5% to 3,103.774 points on the back of declines in the share prices of HSBC and BOV which offset the jump in 6pm. Meanwhile, the two other active equities, namely GO and FIMBank, ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 994.356 points as Eurozone yields slid back to the 1.30% level. Benchmark yields in Europe retreated for the first time in seven days over doubts on the possible actions that may be taken by the European Central Bank (ECB) in the upcoming monthly monetary policy meeting on Thursday. Moreover, economic data published today showed that inflation in the Eurozone remained at 2.4% (higher than the maximum ECB target of 2%) for the third consecutive month whilst the level of unemployment continued to increase.
  • HSBC reversed some of its recent increases with a 1% drop back to the €2.87 level despite still trading with the entitlement to the interim gross dividend of €0.10 per share. Four trades totalling 13,000 shares were transacted during this morning’s session. 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.
  • The share price of BOV slid a further 1.2% today to drop back to the €2.055 level across six traded totalling 12,185 shares.
  • Meanwhile 6pm’s equity advanced by 14.3% to the GBP0.32 level across six trades totalling 25,000 shares.
  • 10,000 GO shares changed hands today at the €1.05 level with few other bids remaining unsatisfied at the closing price.
  • Similarly, FIMBank shares held on to the USD0.85 level across two trades totalling 35,197 shares.
  • Earlier on today, Plaza Centres plc publish its half-year results showing 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’s 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.