Daily Market Highlights (02.09.10)

  • Only four active equities today as the MSE Share Index sinks further below its value at the beginning of the year. Index down 0.4% this morning to 3,428.556 points as BOV’s 2.6% drop outweighed the 0.7% rise in HSBC. Meanwhile Lombard and MIA closed unchanged. Download a copy of today’s Equity Market Summary.
  • Central Bank of Malta Stockbroker sharply lowers bid prices for Malta Government Stock as the benchmark 10-year Eurozone yield recovers to 2.24%. The 5.25% MGS 2030 (I) and the respective fungible issue plunged 85 basis points back to 103.44% with volumes again reaching over €1 million (nominal).
  • The European Central Bank announced this afternoon that it will maintain its benchmark interest rate at the historically low 1% for the sixteenth consecutive month. The decision is a testament to the prevailing uncertainty surrounding the strength of the economic recovery and the vulnerability of banks in the Eurozone, especially in the peripheral countries.
  • BOV slumped 2.6% back to the €3.20 level on volumes of 11,910 shares. Best bids now placed at €3.18 whilst further offers remained unsatisfied at the closing price.
  • Meanwhile, HSBC recovered some of its recent declines as the share price moved 0.7% higher to €2.84 on just 1,500 shares. Few other offers in the market at the closing price whilst best bids now pitched at the €2.82 level.
  • A single trade of 20,000 MIA shares transacted at the €1.58 level, unchanged from the previous close. Further offers outstanding at the last traded price.
  • GO issued its 2010 interim results on Tuesday showing an improved operating profit of €11.24 million on the back of higher revenues as well as lower costs. The Group however incurred a €7.03 million loss from its share of results of its investment in Forthnet SA resulting in a loss after tax of €5.22 million. Further details on results available here.
  • Also on Tuesday, IHI published its 2010 interim results revealing a 3.8% drop in revenues to €49.4 million mainly due to the performance of the Corinthia Tripoli Hotel which was negatively impacted by increased competition and the dispute between Switzerland and Libya. IHI’s performance was further hit by a decline in finance income as the Group continued to invest in its properties and higher finance costs following a new bond issue last September. IHI also incurred €1.1 million in fair value movements on the Group’s interest rate swaps and a €1.4 million share of loss from the London project which mainly comprises pre-opening and marketing costs. Overall, the Group incurred a loss after tax of €9.19 million during the period under review compared to a loss of €2.81 million incurred during the first half of 2009. Further details of results available here.

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