Daily Market Highlights (03.08.10)

  • MSE Share Index edges 0.2% lower to 3,550.907 points as the declines in HSBC, GO and Middlesea offset the gains in BOV, Medserv and MaltaPost. Meanwhile MIA closes unchanged despite a further 15.8% increase in passenger movements during July. Download a copy of today’s Equity Market Summary.
  • Subscription period for the new Malta Government Stock issues closes tomorrow afternoon while tenders for amounts in excess of €100,000 will be accepted until noon on Friday. A total aggregate amount of €100 million is being issued subject to an over-allotment option of up to a further €50 million. 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 fails to hold on to yesterday’s gains as the share price drops 1.3% to the €3.02 level on low volumes of 4,600 shares. Last Friday the Bank published its interim results revealing a 21.4% increase in pre-tax profits to €42.2 million on the back of growth in 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.
  • Meanwhile further demand for BOV shares lifts the equity to a 2-month high of €3.34, representing a 1.8% increase over the previous close. In last Friday’s Interim Statement, the Directors explained that during the third quarter of the Bank’s financial year (April – June 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.
  • A further 3,000 MIA shares trade at the €1.62 level. The airport operator this morning announced that following the 10.3% increase in passenger movements recorded in the first six months of 2010, the July 2010 statistics show a further 15.8% increase to a record high of 401,952 passenger movements – the first time MIA recorded more than 400,000 passenger movements in a month. As a result the growth in passenger movements during the first seven months of the year now reads 11.5%. The net interim dividend of €0.03 per share announced last Friday is payable to those shareholders on the Company’s register as at close of trading tomorrow. Further details of results available here.
  • GO share price drops 2.1% to the €1.86 level. The equity of the quad-play telecom operator has been underperforming the overall equity market and is now 11.4% below its price at the beginning of the year. The telecoms Group still has to announce the date of its interim results publication.
  • Medserv and MaltaPost in positive territory. Medserv share price up 0.8% to €4.235 with the postal operator seeing a 5.9% increase in its share price to the €0.90 level.
  • Meanwhile Middlesea Insurance retreats by 3.9% to the €1.10 level ahead of the interim results publication on 12 August. A thin trade of 495 shares transacted today with further bids at the closing price and lowest offers in the market at the €1.148 level.
  • On the bond market, following yesterday’s admission of the 3 new bonds by Mediterranean Investments Holding plc, trading in the EUR tranche commenced this morning with the price climbing 250 basis points to 102.50%.

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