Daily Market Highlights

Mar 23, 2010



  • Local equity market in negative territory for the fourth consecutive session. MSE Index eases a further 0.3% lower to close at 3,570.203 points as the two largest cap equities, HSBC and BOV, trade lower during this morning’s session. MaltaPost and RS2 Software also edges lower whilst GO and Simonds Farsons Cisk move higher. Meanwhile the other three active equities close unchanged. Download a copy of today’s Equity Market Summary.
  • BOV erases most of yesterday’s gains as the share price slips 0.8% lower to close at the €3.26 level. Low volumes of just over 6,900 shares exchanged today with further bids remaining unsatisfied at the closing price whilst lowest offers placed at the €3.285 level.
  • HSBC also slips 0.6% lower to close at the €3.28 level on continued low volumes of over 7,300 shares. Other bids outstanding in the market at the last traded price whilst lowest offers now placed at the €3.379 level. The Bank is scheduled to hold its Annual General Meeting on 8 April 2010.
  • Meanwhile GO’s share price jumps 2.1% higher towards the dying minutes of today’s session to close at the €2.19 level. Fresh bids during the end of the session help the equity recover from an intra-day low of €2.10. Seven trades amounting to 11,000 shares transacted this morning with best bids now placed at €2.01 whilst further offers remain unsatisfied at the closing price. The telecoms Group recently published its 2009 financial statements which showed a 4.5% decline in turnover to €123.7 million as the Group was negatively effected by the international economic climate, the increased competition and by the impact of regulation. On the other hand, GO stated that it was positively impacted by the results of the BM Group, the data centre operation in which GO acquired a 60% shareholding in April 2009. GO’s results were also negatively impacted by the investment in Forthnet. Forthnet managed to reduce its loss during 2009 and announced a pre-tax loss of €40.5 million (2008: loss of €54.6 million). The GO Group incurred a pre-tax loss of €3.2 million (2008: Profit of €0.3 million) resulting in loss per share of €0.066 (2008: +€0.02). GO recommended the payment of a final net dividend of €0.10 per share to those shareholders as at close of trading on Tuesday 13 April 2010. Further details available here.
  • Simonds Farsons Cisk edges 1.1% higher to regain the €1.699 level on a single trade of just 1,500 shares.
  • Middlesea Insurance trades unchanged at the €0.72 level on just 1,735 shares. The insurance company recently held an Extraordinary General Meeting during which shareholders approved a number of changes to the memorandum and articles of association to reflect the new shareholding structure following the November 2009 Rights Issue. Middlesea is scheduled to hold its Annual General Meeting on 9 June 2010.
  • IHG Holdings also closed unchanged at the €1.01 after recovering from an intra-day low of €1.00 – equivalent to its September 2009 IPO price. 5,600 shares exchanged today with no bids in sight whilst further offers remain outstanding at the closing price.
  • A single trade of 1,000 MIA shares transacted today at the €3.10 level, unchanged from the previous close. The airport operator’s 2009 financial statements published on 11 March showed a 3.3% increase in pre-tax profits to €14.1 million (the highest level in the last 3 years) despite a 6% decline in passenger numbers in 2009. The Directors recommended a final gross dividend of €0.08769 per share (net: €0.057) to shareholders as at close of trading next Monday 29 March 2010. The Board is also proposing the redenomination of the nominal value of the ordinary shares of the Company from €0.465874 per share to €0.50 per share and a subsequent 2-for-1 share split on 1 June 2010. Further details available here.
  • MaltaPost’s equity in negative territory for the third consecutive session. Share price slumps 4.3% lower to close at the €0.75 level on volumes of 20,000 shares.
  • RS2 Software sheds 4% to close at an all-time low of €0.48 level on a single trade of 6,000 shares. Best bids placed at the €0.30 level whilst further offers remain unsatisfied at the closing price.
  • The General Public Offering stage for Premier Capital plc’s bond issue opens tomorrow. The development licensee of McDonald’s in Malta, Latvia, Lithuania and Estonia is offering €20 million worth of 10-year bonds (with a €5 million over-allotment option) at a coupon of 6.8% per annum in order to continue expanding in the Baltic States and Malta. Further details available here.
  • IHI’s new 10-year bond issue of €25 million at a coupon of 6.25% per annum also opens tomorrow. The proceeds are partly earmarked to fund the redemption of the €11.6 million 5% convertible bonds which mature on 29 May 2010 while the balance will be mainly used to fully repay an outstanding loan with an international bank. Further details available here.