Daily Market Highlights (03.08.12)

  • Following four sessions of declines, the MSE Share Index edged 0.1% higher today to 3,086.704 points. Today’s upturn follows the increases in the share prices of BOV and GO which offset the decline in Crimsonwing shares. Meanwhile, the two other active equities, namely IHI and RS2 ended the session unchanged. Download a copy of the Equity Market Summary. Despite this morning’s recovery, the local equity benchmark still ended the week 1.3% lower as most of the active equities traded lower during the past five sessions.
  • On the bond market, the Rizzo Farrugia MGS Index rose 0.2% this morning to close the week at 955.716 points (+0.3% over the week) reflecting this morning’s drop in Eurozone yields to well below the 1.3% level after the European Central Bank (ECB) adopted a wait and hold strategy on further concrete measures to stem the crisis. The markets were also disappointed by similar decisions taken by the US Federal Reserve and the Bank of England.
  • Yesterday, Malita Investments plc published its allocation policy with respect to the recent share issue. The Company revealed that it received 1,239 applications for a total of 30.97 million shares compared to the maximum 30 million shares in issue. Malita explained that all applications up to 1 million shares will be satisfied in full. Listing of the shares on the Official List of the Malta Stock Exchange will take place on Tuesday 7 August with trading expected to commence on Monday 13 August.
  • BOV’s share price advanced by a further 0.5% to close above the €2.10 level for the first time since 16 May and end the week in positive territory. Just over 10,000 shares changed hands today with further bids unsatisfied at the last closing price.
  • Meanwhile HSBC failed to recover this week’s earlier declines as it failed to trade during this morning’s session to end the week 0.5% lower despite trading with the entitlement to the interim gross dividend of €0.10 per share. The equity turns ex-dividend as from Monday.
  • GO’s equity edged 2% higher during this morning’s session to regain the €1.04 level on a single deal of 1,000 shares. Nonetheless, the quad-play telecom operator registered 1% weekly drop. The Greek company Forthnet yesterday announced that it is in discussions with other companies in the sector to investigate “potential consolidation of business activities” and possible strategic alliances.
  • Crimsonwing slid 19.2% lower to the €0.21 level on weak volumes of 3,800 shares. The drop could be due to the recent publication of the March 2012 financial statements showing a loss for the fourth consecutive year. Nonetheless, in the Annual Report, the Directors explained that the Group should return to an overall profitable position in the current financial year ending 31 March 2013 given the encouraging business pipeline (including the start of some large contracts) and the completion of the restructuring at the Dutch subsidiary, VDA, which is now benefitting from significant annual savings. Further details of results available here.