Daily Market Highlights (04.05.11)

  • MSE Share Index shaves another 0.2% dropping back to 3,350.675 points as BOV, GO, FIMBank, Farsons and MaltaPost all trade lower. Meanwhile the other three active equities, namely HSBC, Middlesea and RS2 closed unchanged. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index retreated by another 0.2% to close at 973.235 points as Eurozone yields regained the 3.31% level today ahead of tomorrow’s European Central Bank monetary policy meeting. The markets are speculating on further interest rate increases by the ECB to counteract the prevailing inflationary pressures.
  • BOV’s share price eased 0.4% lower back to the €2.88 level across elven trades totalling over 21,150 shares. Best bids now placed at €2.852 whilst lowest offers still pitched at the €2.89 level. Last Friday the Bank published the financial statements for the six months ended 31 March 2011 revealing a net profit figure of €30.3 million, 3.8% higher than the €29.2 million recorded in the comparative period in 2010. The Directors declared an unchanged gross interim dividend of €0.0625 per share (net: €0.0406 per share) to those shareholders as at close of trading on Monday 9 May 2011. Further details on results are available here.
  • Meanwhile HSBC closed unchanged at the €3.00 level on volumes of 18,500 shares. The Bank is shortly expected to publish its Interim Directors Statement to update the investing public on its performance since the end of 2010.
  • Middlesea Insurance also maintained the €0.95 level across three trades totalling only 1,396 shares. Last Friday Middlesea announced that Mapfre agreed to acquire Munich Re’s 19.9% shareholding at an undisclosed price. If this is approved by the regulator, Mapfre will own more than 50% of Middlesea thereby triggering a mandatory bid for the remaining shares whereby all other shareholders in Middlesea will become entitled (but not obliged) to sell their shareholding to Mapfre at the Mandatory Bid price which still has to be determined. BOV, which currently holds 31.08% of Middlesea, has agreed with Mapfre that it will not tender its shares under the Mandatory Bid. The announcement also reveals that Mapfre is in discussions with the relevant authorities to allow the shares to remain listed on the Official List of the Malta Stock Exchange.
  • FIMBank slips 0.6% lower to a new 68-month low of US$0.865 on one deal of 1,675 shares. The trade finance specialist is scheduled to hold its Annual General Meeting tomorrow during which shareholders will be asked to approve a number of resolutions including the gross dividend of US$0.038 per share and the de-listing of FIMBank plc shares from the Official List of the Malta Stock Exchange in the light of the ‘share-for-share exchange’ proposed by FIM Holdings plc. In this respect, shareholders of FIMBank should have received a Prospectus by FIM Holdings plc together with an acceptance form which shareholders must return to the Company by 22 June. Further details on the ‘share-for-share exchange’ available here.
  • GO’s share price remains under pressure as it reversed yesterday’s 0.7% increase to drop back to the €1.33 level. 38,650 shares traded today with further offers unsatisfied at the closing price whilst best bids in the market at the €1.321 level. Equity turns ex-dividend as from tomorrow with the telecoms Group scheduled to hold its Annual General Meeting on 8 June.
  • Simonds Farsons Cisk also in negative territory despite still trading with the entitlement to the final net dividend of €0.0533 per share. Equity down 2.2% to €1.80 on a single trade of 7,377 shares with further bids unsatisfied at the last traded price whilst lowest offers pitched at the €1.83 level. Farsons’ shares turn ex-dividend as from 20 May.
  • MaltaPost also drops 0.8% to close at €1.08 ahead of the interim results publication which generally takes place by mid-May. Further offers outstanding at the closing price whilst best bids in the market at today’s intra-day low of €1.02.
  • A single trade of 44,900 RS2 Software shares executed at the €0.50 level, unchanged from the previous close. Equity will continue to trade with the entitlement to the net dividend of €0.032 per share until 10 May.