Daily Market Highlights (01.03.11)

  • Eight consecutive session of declines across local equities as the Libya debacle continues to negatively impact local investor sentiment. MSE Share Index down another 0.4% to 3,588.326 points as HSBC and 6pm Holdings trade lower. Meanwhile the only other active equity, MIA, closed unchanged. Download a copy of today’s Equity Market Summary.
  • Further declines also in the local corporate bond market as investors remain wary of the effects of the Libyan political turmoil. Particular focus again placed on the Corinthia Group related bonds as most of the Mediterranean Investments Holding plc bonds now trading just below the 90% level. Selling pressure also impacting other corporate bond prices with the 4.25% FIMBank plc 2013 (USD) dropping 100 basis points to a new all-time low of 99%. The 7% MIDI plc 2019 also slipped 40 basis points lower to 102%.
  • The Rizzo Farrugia MGS Index dropped 0.3% back to 980.840 points in line with the increase in the benchmark Eurozone yields to the 3.17% level. The recent MGS issues are expected to be admitted to listing shortly with the bid price of the 5.25% MGS 2030 dropping 52 bp this morning to 102.12%.
  • HSBC’s share price down for the third consecutive session despite still trading with the entitlement to the final gross dividend of €0.077 per share until next Thursday 3 March. Equity retreats by a further 1.3% to a 3-month low of €2.931 on volumes of 16,935 shares. Other bids unsatisfied at the closing price whilst lowest offers now placed at the €2.969 level.
  • Meanwhile BOV shares inactive today with offers outstanding at the last closing price of €2.98 and best bids in the market at the €2.97 level. Earlier this month BOV’s Directors revealed that the Group’s net profit for the three months ended 31 December 2010 was in line with that reported in the previous comparable quarter but below expectations mainly due to fair value markdowns.
  • MIA again unchanged at the €1.75 level across five trades totalling 11,000 shares. The airport operator is shortly expected to publish its February passenger numbers which could include the recent upswing in traffic as a result of the evacuations of expatriates working in Libya. MIA is also due to publish its 2010 financial results on 17 March.
  • Share price of 6pm Holdings plunges 13.2% to a new all-time closing low of GBP0.46 across one deal totalling 1,180 shares. No other bids in the market whilst offers already placed lower at the GBP0.45 level. Last Friday, the Company announced that subject to regulatory and shareholder approval, it is seeking to acquire two subsidiaries of Compunet Holdings Ltd for a total consideration of €1 million which would be funded through a rights issue. Further details on the acquisition and rights issue available here.

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