Daily Market Highlights (03.02.10)

  • MSE Share Index slips a further 0.5% back to close just above the 3,800 points level mainly on continued declines in BOV and Middlesea. Lombard, FIMBank and Grand Harbour Marina also traded lower today whilst the other three active equities (HSBC, GO and Plaza) closed unchanged. Download a copy of today’s Equity Market Summary.
  • Yesterday the Treasury announced the issue of 3 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. Two of the new stocks are the 3.75% MGS 2015 (VI) and the 4.6% MGS 2020 (II) (Fungible Issue) both at a price to be determined on Thursday 11 February. The Government is also issuing a Floating Rate bond which matures in 2013 but is only available by tender and subject to a minimum of €250,000. Further details on these new stocks available here.
  • Last week Grand Harbour Marina plc announced a €10 million bond issue at a coupon of 7% per annum. The bonds have a final maturity date of 25 February 2020 but may be redeemed anytime between 25 February 2017 and 25 February 2020. The Issuer also reserves the right to increase the amount up to a further €2 million in the event of over-subscription. Further details on the bond issue available here. Equity this morning eased 1.1% lower to the €1.88 level on volumes of 6,134 shares. Further bids in the market outstanding at the closing price whilst lowest offers still placed at the €1.97 level.
  • On Monday, Corinthia Finance plc announced that it has submitted an application to the Listing Authority to offer a new bond of €15 million which matures in 2019 but may be redeemed earlier between 2016 and 2019. The new Bond will be guaranteed by Corinthia Palace Hotel Company Limited and will be fungible with the existing 6.25% Corinthia Finance 2019 Bonds. Further details of this bond issue is available here.
  • BOV in negative territory for the second consecutive session as the share price falls a further 1.5% to €3.299. Increased volumes of just under 24,000 shares exchanged today with best now placed at the €3.285 and further offers remaining unsatisfied at the closing price. Last Friday the Bank published its Interim Directors’ Statement covering the period from the start of their 2009/10 financial year on 1 October 2009. The Directors stated that the operating profit for the three months ended 31 December 2009 has been satisfactory. The Directors warned that on the basis of Middlesea’s Rights Issue Prospectus published on 20 November 2009 and the subsequent announcement revealing a deteriorating situation at the Group’s Italian subsidiary Progress Assicurazioni, BOV expects to report a negative charge with respect to the financial performance of its associate company. On the Balance Sheet side the Bank maintained strong liquidity and capital ratios. In conclusion, the Directors announced that the Bank will soon approach the market with a new bond issue. Further details available here.
  • Meanwhile, HSBC closes unchanged at €3.90 for the third consecutive session on thin volumes of 900 shares. Best bids now placed at the €3.76 level whilst offers already pitched minimally below the last trading price. Yesterday HSBC announced that its Board of Directors is scheduled to meet on 22 February to consider and approve the Group’s 2009 annual financial statements and also consider the declaration of a final dividend to be subsequently approved at the next annual General Meeting.
  • Middlesea slumped by a further 6.4% to the €0.73 level on volumes of 13,601 shares. Further bids remain unsatisfied at the closing price whilst lowest offers now pitched at the €0.79 level. Following today’s downturn, equity is 16.1% below its recent high of €0.87. Middlesea will be holding an Extraordinary General Meeting on 16 March 2010.
  • Single trades executed in Lombard and FIMBank. Lombard eased minimally lower to close at €3.109 on 600 shares whilst the trade specialist declined by 0.9% to US$1.17 level on 4,000 shares. The two financial companies are scheduled to publish their 2009 full-year results on 11 March and 16 March respectively.
  • GO closes unchanged at the €2.28 level after recovering from an intraday low of €2.25. Sixteen trades amounting to 18,600 shares transacted this morning with few bids placed at the €2.25 level and further offers pitched at the closing price. In an interview published last Sunday, Forthnet’s (GO’s greek investment) CEO & Deputy Chairman, Mr Pantelis Tzortzakis, commented that Greece’s economic crisis has not impacted Forthnet with the best ever demand for its broadband products in the last quarter of 2009. Moreover Mr Tzortzakis stated that after breaking the 300,000 subscribers mark in December, in mid-January Forthnet had already increased its subscriber base to over 320,000 subscriptions.
  • Plaza Centres also trades unchanged at the €1.69 level on volumes of 2,500 shares.

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