Daily Market Highlights (14.09.11)

  • Local equity market back into positive territory as BOV’s share price edged 0.4% higher. This lifted the MSE Share Index marginally higher to 3,124.734 points. Nonetheless, trading activity remains low with only 3 equities active during this morning’s session. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased a further 0.2% lower to 993.973 points. This was in line with the further rise in the eurozone yields from the all-time lows earlier this week.
  • Bond prices of Mediterranean Investments Holding plc continue to recover following the recent positive announcement by the Company with respect to developments in Libya and the Palm City Residences. Further details on this announcement available here. During this morning’s session, the euro tranche of the 7.15% MIH 2017 bonds climbed 100 basis points to 98% in contrast to its all-time low of 74% reached in April 2011. Similarly, the price of the 7.5% MIH 2015 bonds jumped 200 basis points to regain the par level, representing a significant recovery from its all-time low of 79.50% (reached in April 2011).
  • Yesterday evening, GAP Developments plc published their 2011 interim results revealing a loss for the period of €688,562. Total revenue amounted to €3.2 million but this was offset by cost of sales amounting to €3.6 million and administrative expenses totalling €696,693. The Directors explained that all construction works are expected to be completed by the end of 2011. The 2011 Interim Report also confirms the €7.3 million fresh injection by shareholders by way of shareholders’ loans. This raised GAP’s total net debt to €90.5 million resulting in a gearing ratio of 11.4 times when compared to equity of €7.9 million. Further details available here.
  • BOV’s share price recovered some of yesterday’s 1.2% drop as the equity rose 0.4% today to regain the €2.60 level across four trades totalling 4,461 shares. Few other offers unsatisfied at the closing price whilst best bids still placed at the €2.59 level.
  • Meanwhile HSBC again closed unchanged at the €2.73 level on low volumes of 1,500 shares. Other bids outstanding at the last traded price whilst lowest offers pitched at the €2.74 level.
  • GO also held on to its previous closing price as 2,000 shares changed hands at the equity’s all-time low of €1.20 level with further bids unsatisfied at this price level. GO ranks as one of the worst performing equities in the local equity market with a 38% slump since the start of the year. This reflects the losses being recognised from its indirect investment in the Greek telecommunications company, Forthnet S.A., which is offsetting the profitable local operations.