Daily Market Highlights (01.08.11)

  • The local equity market kicks-off the month of August on a positive note as HSBC results lift the share price of the commercial banks. MSE Share Index up 1.3% during this morning’s session to 3,266.682 points as five out of the six active equities closed higher, helping the Share Index recover most of last week’s 1.5% drop. Meanwhile GO eased minimally lower. Download a copy of today’s Equity Market Summary. On the bond market, the Rizzo Farrugia MGS Index edged 0.6% higher as the Eurozone yields dropped back to the 2.58% level.
  • Positive reaction to last Friday’s HSBC results as the equity jumped 3% today to regain the €2.885 level although on continuing low volumes of 2,250 shares. Last week the Bank reported a 19.2% increase in profitability to €32.6 million on the back of higher net interest income and non-interest income which offset the higher administration expenses, the €3.7 million loss on the sale of ‘available-for-sale’ investments and a further €4.3 million in impairments. The Directors declared an interim gross dividend of €0.082 to all shareholders as at the close of trading on 5 August. Further details available here.
  • Fresh bids also emerged across BOV shares with its share price moving 1.5% higher to the €2.63 level across nine trades totalling 10,740 shares. Last week, the Bank issued its Interim Statement, covering the three months ended 30 June, revealing a slower demand for credit and investment products, further fair value mark downs and loan impairments which offset the improved net interest income. 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. Meanwhile, BOV reported that the offering of €40 million in Notes carrying a coupon of 4.8% and maturing in 2018 closed early due to oversubscription.
  • Lombard share price also edges 0.6% higher to regain the €2.58 level across three trades totalling 8,800 shares. The Bank is scheduled to publish its 2011 half-year results on 23 August.
  • Following last week’s 2.6% increase in its share price, MIA’s equity gains a further 0.6% today to the €1.60 level helped by the improved profitability of the company. Mid-last week the airport operator revealed an 11.4% increase in profitability to €3.96 million during the first six months of 2011 mainly due to the 2.2% increase in revenue to €26.67 million on the back of a 12.7% rise in passenger movements during the same period. Further details on the results and a copy of the Interim Report may be obtained here.
  • GO’s share price eased minimally lower back to the €1.299 level on a single trade of 1,000 shares. Offers already placed lower at €1.29 whilst best bids now placed at the €1.22 level. GO still has to announce the date of its 2011 half-year results publication.
  • 6pm share price up 14.3% today to regain the GBP0.32 level on low volumes of 2,000 shares. Further offers unsatisfied at the last traded price but best bids still pitched at the GBP0.20 level.
  • Spanish insurance company Mapfre soon to launch takeover bid for remaining shares of Middlesea Insurance following last Friday’s acquisition of 18.3 million shares from Munich Re at a price of €0.63 per share via a special trade affected on the Malta Stock Exchange last Friday. Following this transaction, Mapfre Internacional S.A. became the majority shareholder in Middlesea with a shareholding of 50.98%.