Trading activity significantly dwindled during this morning’s session as only Middlesea Insurance plc shares were active. A total of 5 trades totalling 4,224 Middlesea Insurance shares were transacted with the share price moving 3.2% higher to regain the €0.65 level.
Last Monday’s half-year results publication by Island Hotels Group Holdings plc also failed to generate any trades in this equity. During the six months ended 31 April 2012, the Island Hotels Group registered a 9.1% increase in revenue to €11.56 million. However, higher increases in operating costs, including staff costs and food and beverage costs (mainly following last year’s acquisition of a 50% stake of the retail and contract catering company Buttigieg Holdings), resulted in a decline in the Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to €41,402 compared to €371,882 in the previous comparable period. After accounting for other non-operating costs, net finance expenses and taxes, the Group’s loss for the period under review (covering the shoulder months of the tourism market between 1 November and 30 April) amounted to €2.4 million.
On the bond market, the Rizzo Farrugia MGS Index eased 0.1% lower to a new 10-week low of 984.142 points as Eurozone yields moved higher for the third consecutive session. In fact, benchmark yields are currently just below the 1.55% level following comments by Angela Merkel ahead of a crucial summit scheduled to start tomorrow. The German Chancellor said that there is no easy solution to the region’s debt crisis and urged EU leaders to avoid making rash promises. During the meeting, EU leaders are expected to discuss higher financial and banking integration as well as the possibility of setting up a bond redemption fund.