Daily Market Highlights (05.03.12)

  • Local equity market kicks off this week on a negative note as the MSE Share Index failed to hold on to last week’s 0.2% rise. In fact, the local equity benchmark slid 0.8% during this morning’s session back to 2,981.426 points (marginally higher than its 2012 low) following declines in the share prices of BOV, HSBC, MIA, Middlesea and Plaza. Meanwhile the two other active equities, namely Lombard and Farsons, closed unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to 988.108 points despite continued pressure on benchmark Eurozone yields. In fact, the 10-year Bund yield this morning touched a low of 1.772% on the back of market concerns that the austerity measures being implemented across the region to counteract Europe’s sovereign debt crisis will also slowdown the much needed economic growth in the eurozone. Moreover, markets are still uncertain over the success of Greece’s large debt restructuring.
  • Subscriptions for the new Corinthia Finance plc bond opened last week. Corinthia Finance plc is offering €7.5 million in 6% bonds maturing between 2019 and 2022. Existing bondholders of the maturing 6.7% 2012 bonds have until the 16 March to submit their application if they wish to exchange their existing holding with the new bonds. Copies of the Prospectus are available here.
  • HSBC Malta shares reversed last week’s 0.4% rise as the equity moved back into negative territory during this morning’s session despite still trading with the entitlement to the final gross dividend of €0.072 per share. Equity down 0.4% to the €2.59 level on volumes of just over 10,000 shares. Further bids unsatisfied at the last traded price with lowest offers at the €2.61 level. The 2011 financial statements showed a 6% increase in pre-tax profits but after excluding a number of one-off items including the sale of the card acquiring business and the one-time charges related to the voluntary retirement scheme, the overall performance was in line with the previous year. The final dividend is payable to those shareholders as at close of trading on 13 March. Further details available here.
  • BOV’s share price declines by 2.3% to a new 2012 low of €2.12 across thirteen trades totalling 24,699 shares.
  • A single trade of 13,000 MIA shares transacted at the equity’s 2012 low of €1.69 representing a 0.6% drop from the previous close. The airport operator is scheduled to publish its 2011 preliminary financial results on 22 March. Meanwhile, this afternoon, MIA announced a 3% decline in passengers during the month of February. Further details available here.
  • Plaza’s share price plunges 2.8% to a new 2012 low of €1.75 ahead of the Company’s 2011 preliminary results publication next Thursday 8 March. One deal of 72,000 shares executed today with few other bids outstanding at the last traded price and lowest offers at the €1.80 level.
  • Meanwhile Lombard Bank shares hold on to the €2.53 level across six trades totalling just over 50,000 shares. Last week, the Bank clarified its position with respect to its largest shareholder, Marfin Popular Bank Public Co. Limited (Marfin). Further details available here.
  • Middlesea Insurance edged 1.4% lower to the €0.70 on very low volumes of 100 shares. Last week Middlesea published its 2011 financial results revealing a 51.6% decline in the Group’s profit before tax to €3.1 million (2010: €6.4 million). The Directors also recommended a final gross dividend, after a two-year absence, of €0.01 per share for shareholders as at close of trading on 18 April 2012. Further details on results available here.
  • A small trade of 334 Simonds Farsons Cisk shares was transacted at the €1.72 level, unchanged from the previous close with other bids unsatisfied at the last traded price.