Daily Market Hgihlights (27.07.11)

  • Seventh consecutive session of declines for the local equity market following a sell-off across the 3 banking equities which all closed at new 2011 lows. MSE Share Index drops a further 1.3% to a new 21-month low of 3,207.798 points. Download a copy of today’s Equity Market Summary. On the bond market, the Rizzo Farrugia MGS Index moved another 0.2% higher to 979.478 points as Eurozone yields eased back to the 2.71% level reflecting concerns on Europe’s sovereign despite last week’s approval of a second bail-out for Greece.
  • BOV share price down 2% to a 1-year low of €2.55 on volumes of almost 51,500 shares following the publication of the Interim Statement. BOV revealed a slower demand for credit and a continued satisfactory growth in deposits. Moreover the Directors stated that although net interest income grew, commission and trading income dropped due to the prevailing political developments in North Africa and the Eurozone sovereign debt crisis. The latter also resulted in further fair value mark downs while loan impairments continue to reflect the current scenario of certain sectors of the economy. Overall, the profitability for the first nine months of the current financial year is slightly below that of the previous year before accounting for the one-off cost of €14.5 million relating to the buy-back offer of the La Valette Multi-Manager Property Fund shares. Further details available here.
  • Subdued investor sentiment towards BOV spilled over onto HSBC shares as the latter dropped 2.4% to a new 9-month low of €2.80 across six trades totalling over 5,800 shares. HSBC is set to publish its half-year results next Friday 29 July.
  • Lombard Bank also in negative territory with a 4.1% drop to a fresh 8-month low of €2.56 on volumes of 11,500 shares. Other bids outstanding at the closing price whilst lowest offers now placed at the €2.63 level. The Bank is scheduled to report its half-year figures on 23 August.
  • GO’s share price drops lower on lack of support. Equity down 0.8% to yet another new all-time low of €1.24 despite the recent announcement by Forthnet. The Greek company revealed that it has successfully managed to restructure €90 million of its outstanding debt through the issuance of new long-term debt by a syndicate of banks. Further details available here.
  • A single trade of 1,225 Farsons shares transacted at the €1.80 level representing a 5.9% rise over the previous close with other offers unsatisfied at the closing price.
  • Meanwhile no trades effected in Crimsonwing following yesterday’s publication of full-year results. The IT Company reported a 16.5% increase in revenue to €14.3 million, a 30% growth in EBITDA to €0.75 million and a pre-tax profit of €0.22 million for the financial year ended 31 March 2011. In a separate announcement, Crimsonwing reported that during the first quarter of their 2011/12 financial year revenues grew by 23% to €3.8 million. No bids in sight whilst lowest offers placed at the €0.355 compared to the last closing price of €0.345.
  • Plaza Centres plc issued its half-year results this morning showing a 6.8% increase in revenue to €1.1 million; a 1.1% rise in EBITDA to €0.87 million and a 5% decline in pre-tax profits to €625,275 due to higher costs. Plaza’s equity yesterday held on to its 2011 high of €1.80 with a further 16,595 shares on offer at this level.