Daily Market Highlights (05.03.10)

  • MSE Share Index closes a dismal week with a further 0.3% decline to close just above the 3,600 points level. Today’s downturn was mainly due to drops in the share prices of HSBC, GO and MaltaPost which offset increases in BOV and MIA. After four sessions of negative performances the Index ends the week 0.5% lower as HSBC, BOV, GO, Middlesea and RS2 Software traded lower. Download a copy of today’s Equity Market Summary.
  • Earlier this week 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. Further details available here.
  • Premier Capital plc also announced a new bond issue this week. 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 recoups some of its recent losses as the share price edges 0.6% higher during this morning’s session to regain the €3.31 level. Very low volumes of almost 3,300 shares trade today with best bids now placed at €3.275 whilst offers already placed marginally below the last closing price at the €3.305 level. Despite today’s upturn BOV still ends the week 1.6% lower. The preferred applicants period for the 4.8% BOV’s bond issue is now closed and 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.
  • Meanwhile HSBC slides a further 1.5% lower to drop to the €3.29 level on volumes of 14,850 shares. The Bank published its 2009 results on 22 February revealing 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. The results pushed HSBC’s share price 14.5% lower last week and a further 0.3% this week.
  • MaltaPost share price edges 2.4% lower to close at the €0.78 level on volumes of 43,498 shares. Despite today’s downturn the postal operator still ends the week as the best performing equity with a 2.8% weekly rise on substantial trading activity of 410,624 shares.
  • MIA’s equity gains 1.7% to end the week at the €3.05 level following yesterday’s announcement 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. Best bids now placed at €3.03 whilst lowest offers pitched at the €3.06 level.
  • GO eases 0.4% lower to €2.29 during the last session of the week on just 6,000 shares. Best bids now at the €2.28 level whilst further offers remain unsatisfied at the closing price.

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