Daily Market Highlights (02.08.10)

  • MSE Share Index advances by 0.7% to 3,558.175 points following a positive reaction to last Friday’s announcements of HSBC and BOV. The share prices of the two large banks move higher offsetting the declines in IHI and MaltaPost. MIA, GO and Lombard close unchanged. Download a copy of today’s Equity Market Summary.
  • Subscription period for the new Malta Government Stock issues now open. Applications at the fixed price have to be submitted by Wednesday whilst tenders will be accepted by noon on Friday. A total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million are on offer. The 3.75% MGS 2015 (VI) (FI) s being offered at 102.50% and the 5.25% MGS 2030 (I) (FI) at par (100%). The Treasury is also offering €30 million in a new fungible stock linked to the 6-month Euribor. Copies of application forms available here.
  • HSBC share price jumps 2% to €3.06 following last Friday’s interim results revealing a 21.4% increase in pre-tax profits to €42.2 million as the bank grew its revenues whilst keeping its costs flat. An interim gross dividend of €0.079 per share was declared to those shareholders as at close of trading next Thursday 5 August. Further details and copy of interim results available here. 26,485 shares trade today with best bids now placed at €3.02 whilst lowest offers pitched at the €3.069 level.
  • BOV also in positive territory following last Friday’s Interim Directors Statement. Equity closes 0.8% higher at €3.28 after easing from an intra-day high of €3.30. A total of 11,215 shares trade today. Further bids outstanding at the last closing price whilst lowest offers in the market at the €3.30 level. In last Friday’s statement, the Directors explained that during the third quarter of the Bank’s financial year (April – July 2010), the Group’s net interest margin improved further whilst the commission and trading activities remained strong and ahead of expectations. The BOV Group also assured investors that operating expenses remained on track whilst overall credit quality remained satisfactory. However the third quarter saw a reversal of the modest fair value gains reported at the half-year period. The Directors stated that the results for the full-year will be influenced by the outcome of the credit markets in the last quarter. Further details available here.
  • MIA continues to trade at the €1.62 level as a further 4,000 shares are exchanged. Last Friday MIA announced that during the first six months of 2010, total revenue increased by 7.9% to €22.2 million over the same period of 2009 mainly as a result of a 10.3% rise in passenger movements due to additional seat capacity. Operating costs rose by 6.6% mainly due to increases in utility rates.  The Group’s profit after tax for the six months ended 30 June 2010 amounted to €3.6 million – 16.5% above the profit level generated in the same period last year. The Directors declared a net interim dividend of €0.03 per share payable to those shareholders on the Company’s register as at close of trading on Wednesday 4 August 2010. Further details and copy of interim results available here.
  • IHI eases minimally lower to €0.899 on a single trade of 1,000 shares. Last week the IHI Group announced that it will be convening an Extraordinary General Meeting on 27 August to approve the 4% bonus issue announced at the last Annual General Meeting. Further details on the bonus issue available here.
  • MaltaPost slumps 5.6% to drop back to the €0.85 level on a single trade of 2,256 shares. Few other bids remaining unsatisfied at the closing price with lowest offers placed at the €0.89 level.
  • GO recovers from an intra-day low of €1.86 to close unchanged at the €1.90 level across two trades totalling 2,280 shares.

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