Daily Market Highlights (04.03.10)

  • Further declines in the share prices of BOV and HSBC send MSE Share Index lower for the third consecutive session. Index drops by 0.5% during this morning’s session to 3,615.766 points as most of the active equities trade lower. Volumes in the equity market remain low (with the exception of MaltaPost) as investors continue to focus on the bond market. Download a copy of today’s Equity Market Summary. Meanwhile in the Malta Government Stock market, the 4.6% MGS 2020 (II) FI which commenced trading today increased by 188 basis points from the recent offer price to close at 101.88%.
  • Yesterday, Corinthia Finance announced the allotment policy with respect to its recent €15 million 6.25% 2016-2019 bond issue. The issue was heavily oversubscribed and closed immediately with a total of €23.7 million worth of subscriptions received from preferred applicants as well as from new investors. Just over €12 million worth of subscriptions were received from holders of the maturing 6.5% bonds (representing 84% of the total value of the maturing bond) which were met in full. Meanwhile, Corinthia Finance announced that it received a further €11.65 million worth of new applications which had to be scaled down to a total value of €2.95 million with the allocation policy established at 25.3% of the application value. Further details available here.
  • On Tuesday, IHI announced the issue of €25 million 6.25% Bonds which mature in 2020 but which 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.
  • Premier Capital plc also announces new bond issue. The development licensee of McDonald’s in Malta, Latvia, Lithuania and Estonia is offering €20 million worth of 10-year bonds (with a €5 million over-allotment option) at a coupon of 6.8% per annum in order to continue expanding in the Baltic States and Malta. Further details available here.
  • BOV shares continues to ease lower on lack of support. Share price declines by 0.3% to the €3.29 level on volumes of over 12,800 shares. Best bids now placed at the €3.275 level whilst lowest offers now pitched at the €3.31 level. The preferred applicants period for the 4.8% BOV’s bond issue is now closed. Meanwhile subscriptions from the General Public open next Monday 8 March. BOV is issuing a €50 million 4.8% Subordinated Bond issue with an over-allotment option of another €20 million due in 2020. Further details available here.
  • HSBC also sheds 1.2% to close at the €3.34 level on low volumes of 6,550 shares. Equity dropped 13.7% since the Bank’s 2009 results publication last week. The results revealed 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.
  • High volumes maintained in MaltaPost shares. Share price eases minimally lower to close at the €0.799 level on volumes of over 100,000 shares. Further shares on offer at the closing price whilst best bids still pitched at the €0.72 level.
  • MIA edges 1% lower to close at the €3.00 level on low volumes of 3,300 shares. The local media this morning reported that that the Government of Malta reached an agreement for the low-cost airline, Ryanair, to base an aircraft in Malta which will serve additional destinations, namely Valencia, Bologna, Seville, Billund in Denmark, Krakow in Poland and Marseilles.
  • GO maintains the €2.299 level also on low volumes of 9,100 shares. Best bids now placed at the €2.24 level whilst further offers remain unsatisfied at the closing price.

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