Daily Market Highlights (05.02.10)

  • Downturn in local equity market persists as the MSE Share Index drops a further 1.3% to close at €3,731.892 points. During this morning’s session HSBC, BOV, FIMBank and Plaza Centres all traded lower to offset the increases in GO and Global Capital. Following last week’s 1.9% drop, the Index ends this week a further 3% lower mainly due to the sharp declines in the equities of the two large banks. Download a copy of today’s Equity Market Summary.
  • On Tuesday the Treasury announced the issue of 3 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. Two of the new stocks are the 3.75% MGS 2015 (VI) and the 4.6% MGS 2020 (II) (Fungible Issue) both at a price to be determined on Thursday 11 February. The Government is also issuing a Floating Rate bond which matures in 2013 but is only available by tender and subject to a minimum of €250,000. Further details on these new stocks available here.
  • Preplacement for €10 million Grand Harbour Marina plc bond issue to take place next Monday 8 February. The 7% bonds have a final maturity date of 25 February 2020 but may be redeemed anytime between 25 February 2017 and 25 February 2020. The Issuer also reserves the right to increase the amount up to a further €2 million in the event of over-subscription. Further details on the bond issue available here. A further 4,466 Grand Harbour Marina shares trade at the €1.87 level during this morning’s session.
  • On Monday, Corinthia Finance plc announced that it has submitted an application to the Listing Authority to offer a new bond of €15 million which matures in 2019 but may be redeemed earlier between 2016 and 2019. The new Bond will be guaranteed by Corinthia Palace Hotel Company Limited and will be fungible with the existing 6.25% Corinthia Finance 2019 bond issued last September. Further details of this bond issue is available here.
  • BOV eases minimally lower to the €3.249 level after recovering from an intra-day low of €3.20. Over 21,500 shares exchanged today with best bids in the market at €3.20 whilst further offers remain unsatisfied at the closing price. Equity closes the week 4.4% lower. After the close of today’s trading session, BOV announced that it has formally submitted an application to the Listing Authority for the admissibility to listing of €50 million in new 4.8% Subordinated Bonds redeemable in 2020 and subject to an over-allotment option of up to a further €20 million. The proceeds from the Bond Issue will be used to finance the redemption of the existing €46.6 million 6.15% BOV Subordinated Bonds 2010, to further strengthen BOV’s Tier II Capital and for the general financing requirements of the Group. BOV intends to give preferential allocation to the current bondholders of the maturing 6.15% Bonds who surrender their existing holding. Further details available here.
  • Lack of support sends HSBC’s share price 3.3% lower to the €3.761 level representing a 3.6% weekly decline. Volumes still low with only 8,325 shares traded today. On Tuesday HSBC announced that its Board of Directors is scheduled to meet on 22 February to consider and approve the Group’s 2009 annual financial statements and also consider the declaration of a final dividend to be subsequently approved at the next Annual General Meeting.
  • Fresh demand for GO shares helps the equity recoup yesterday’s decline and close at a fresh 16-month high. Share price rises by 1.1% to the €2.299 level on volumes of just under 10,500 shares. Yesterday GO announced that its Chairman Mr. Sonny Portelli has tendered his resignation with effect from 10 March 2010 and will be replaced by Mr. Deepak Padmanabhan, a Director of GO since 2006. Further details available here.
  • FIMBank slides 3.4% back to the US$1.14 level. Only 8,340 shares traded today with few other bids at the closing price whilst lowest offers now placed at the US$1.17 level. The trade finance specialist is scheduled to publish its 2009 accounts on 16 March 2010.
  • A further 24,070 MaltaPost shares change hands at the €0.75 level during this morning’s session. Equity ends the week 6.1% lower after trading for the first time since turning ex-dividend on 26 January. On 21 January the postal operator published its September 2009 results showing a 10% increase in pre-tax profits to €3.2 million. Further details of results available here.
  • Thin trades in Plaza Centres and Global Capital. A single trade of 1,000 Plaza Centres shares transacted at the €1.65 level, representing a 2.4% drop from the previous close. On the other hand GlobalCapital edges 0.7% higher to a fresh 10-month high of €1.90.

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