Daily Market Highlights (05.04.12)

  • Local equity market back into positive territory as the MSE Share Index climbed 0.6% higher to 2,952.060 points mainly due to the increases in the share prices of HSBC and BOV. GO also in positive territory whilst the only other active equity, Middlesea, closed unchanged. Download a copy of the Equity Market Summary. Following this morning’s turnaround, the local equity benchmark ended this shortened week 0.4% higher reflecting the weekly increases in the two big banks’ equities, FIMBank and Farsons which offset the weekly declines in GO, MaltaPost and Crimsonwing.
  • On the bond market, the Rizzo Farrugia MGS Index was practically unchanged today at 982.329 points to end the week marginally lower. Eurozone yields were stable around the 1.80% level this morning. As fears over the Eurozone debt levels rise, investors again sought the “safe-haven” assets of Germany pushing the yields back to a new 5-month low of 1.724%.
  • Last Tuesday, BOV closed subscriptions in relation to the issue of €40 million of Notes carrying a coupon of 4.25% and maturing in 2019 since the issue was fully subscribed. The Bank is expected to publish the allocation policy in the coming days.
  • HSBC recovered most of yesterday’s 1.6% drop with a 1.2% rise during this morning’s session to regain the €2.54 level across three trades totalling 6,200 shares and end the week 1% higher. The Bank is scheduled to hold its Annual General Meeting on 18 April.
  • Similarly, BOV’s share price edged 0.9% higher to regain the €2.14 level across ten trades totalling 21,927 shares. Few bids in the market at €2.122 whilst lowest offers pitched at the €2.20 level. Equity ended the week 0.9% higher.
  • Minimal recovery in GO as its share price moved 0.7% higher to close at the €0.77 level but still ended the week 8.2% lower. The quad-play operator’s equity currently lies 21.4% below its value at the start of the year (apart from the drops of 7.9% and 49.4% registered in 2010 and 2011 respectively) reflecting the significant negative impact of the Group’s substantial investment in Forthnet.
  • A small deal of 127 Middlesea Insurance shares was executed at the €0.70 level, unchanged from the previous close. Other bids unsatisfied at the closing price whilst lowest offers pitched at the €0.715 level. The Insurance equity is still trading with the entitlement to the final gross dividend of €0.01 per share. The equity will turn ex-dividend as from 19 April.
  • IHI shares still inactive today despite this morning’s 2011 full-year results publication. During 2011, the Group reported a 2.3% increase in revenue to €101.8 million as the drop in turnover from the Tripoli hotel was offset by growth in business at all of the other Group’s hotel properties. Overall, the Group reported a loss attributable to shareholders of €10.4 million compared to the €12.5 million loss recorded in 2010. Looking ahead, the Directors remain confident the Group will continue to improve its profitability given its ability to withstand adverse business and economic conditions (as evidenced in 2011) coupled with brand enhancement as well as sustained improvement in the operating performance of its properties. Further details on results available here.
  • Trading on the Malta Stock Exchange will resume on Tuesday 10 April 2011.