Daily Market Highlights (03.03.10)

  • Local equity market closes lower for the second consecutive session. MSE Share Index drops 0.5% to 3,633.927 points as the share price of the two big banks and Middlesea decline offsetting the 3.9% increase in MaltaPost. Meanwhile the other two active equities, GO and IHI, closed unchanged. Download a copy of today’s Equity Market Summary.
  • The three new Malta Government Stock issued recently to commence trading tomorrow.
  • On Monday the intermediaries offer of the 6.25% Corinthia Finance plc 2016-2019 Bonds was closed immediately after opening due to oversubscription. Allocation policy is expected to be announced in the next few days.
  • IHI yesterday announced the issue of €25 million 6.25% Bonds which mature in 2020 but may be redeemed early between 2017 and 2020. The proceeds are partly earmarked to fund the redemption of the €11.6 million 5% convertible bonds which mature on 29 May 2010. The balance will be mainly used to fully repay an outstanding loan with an international bank. IHI will be giving preferential allocation to the holders of the 5% convertible bonds. IHI will also be giving preferential allotment to its shareholders and bondholders, together with bondholders of Corinthia Finance plc and Mediterranean Investments Holding plc on the respective registers as at Friday 26 February 2010. Further details available here. IHI’s equity closed unchanged at the €0.80 level after easing from an intra-day high of €0.819. Low volumes of just under 6,300 shares exchanged today with best bids now placed at €0.765 and lowest offers pitched at the €0.82 level.
  • Premier Capital plc also announces new bond issue. 10-year bonds at a coupon of 6.8% per annum. The development licensee of McDonald’s in Malta, Latvia, Lithuania and Estonia is offering €20 million worth of bonds (with a €5 million over-allotment option) in order to continue expanding in the Baltic States and Malta. Further details available here.
  • BOV sheds a further 1.8% to close at the €3.30 level on volumes of over 14,200 shares. Further bids remain unsatisfied at the closing price whilst lowest offers now placed at the €3.32 level. The BOV Group recently announced a €50 million 4.8% Subordinated Bond issue with an over-allotment option of another €20 million due in 2020. Existing bondholders of the maturing 6.15% BOV 2010 Bonds have until tomorrow to submit their application to be eligible to switch the redeeming bond into the new 4.8% bonds. Further details available here.
  • HSBC also eases 0.3% lower to €3.38 on low volumes of 9,500 shares. Best bids still placed at €3.34 whilst further offers outstanding at the last trading price. Last week HSBC published its 2009 accounts revealing a 25.9% drop in pre-tax profits to €71.2 million as net operating income declined by 15.2%. Meanwhile HSBC Malta reported that loans and advances increased by 3.7% to €3.2 billion while deposits edged 1.7% higher to €4.1 billion. The Directors recommended a final gross dividend of €0.08 per share for approval at the forthcoming Annual General Meeting on 8 April 2010. Further details available here.
  • Middlesea Insurance edges 1.3% lower to €0.74 on volumes pf 6,700 shares. The Insurance Group is scheduled to hold an Extraordinary General meeting on Tuesday 16 March to amend the Memorandum and Articles of the Company and elect Directors following the completion of the Rights Issue process.
  • MaltaPost‘s equity continues to attract high volumes. Almost 160,000 shares exchanged today with the share price rising 3.9% to regain the 2010 high of €0.80.
  • A further 2,000 GO shares trade unchanged at the €2.299 level. Best bids in the market still placed at €2.25 whilst further shares remain on offer at the closing price.

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