Daily Market Highlights (06.05.11)

  • Local equity market in negative territory for the fourth consecutive session. MSE Share Index sheds a further 0.7% during this morning’s session to close at a new 17-month low of 3,301.571 points as HSBC, BOV, FIMBank and Island Hotels trade lower, offsetting the 3.2% rise in Middlesea. Three other equities, namely GO, MIA and MaltaPost closed unchanged. Over the week, the MSE Share Index slipped 1.3% as all active equities, including most of the large cap equities, closed in negative territory with the exception of Middlesea. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index recovered by 0.2% today to 974.11 points as the Eurozone benchmark yields tumbled back below the 3.2% level following yesterday’s comments made by the President of the European Central Bank. Mr Trichet failed to meet market expectations as he indicated that the ECB will not raise interest rates in June but will consider lifting its intervention rate for the second time this year in July.
  • Yesterday, the Treasury announced the pricing of the two new Malta Government Stock Issues. Both the 4.25% MGS 2017 (III) FI and the 5.25% MGS 2030 (I) FI were priced at 100.75%. The total aggregate amount on offer is of €100 million subject to an over-allotment option of up to a further €50 million. Subscriptions open on Monday 9 May and close on Wednesday 11 May for the General Public. Further details available here.
  • BOV share price retreats by another 1.4% to a new 6-month low of €2.80 despite still trading with the entitlement to the net interim dividend of €0.0625 per share. Eighteen trades totalling 42,810 shares transacted this morning. Last Friday the Bank published its 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. Equity ends the week 2.8% lower.
  • HSBC also in negative territory as its share price declined by another 1.3% back to the €2.95 level representing a weekly drop of 1.7%. Just under 8,000 shares exchanged today with few other bids unsatisfied at the closing price. The Bank is shortly expected to publish its Interim Statement to update the investing public on its performance since the end of 2010.
  • Also in the financial sector, FIMBank slipped a further 2.9% to a fresh 71-month low of US$0.84 level across sixteen trades totalling 16,000 shares. Yesterday, FIMBank held its Annual General Meeting during which shareholders approved all the item on the agenda including the delisting of its shares on condition that the FIM Holding plc ‘share-for-share exchange’ is successful and the new holding company is floated onto the Official List of the Malta stock Exchange. Further details on this ‘share-for-share exchange’ is available here.
  • On the other hand, Middlesea Insurance edged a further 3.2% higher this morning to regain the €0.98 level and close the week as the best performing equity with a 15.3% jump. Last Friday, Middlesea announced the Mapfre Internacional is seeking regulatory approval to acquire Munich Re’s 19.9% shareholding. If approved, Mapfre will end up with more than 50% of Middlesea’s issued share capital and therefore will be obliged to launch a bid for the rest of the shares. Further details available here.
  • GO unchanged today at the €1.29 level but volumes decline. GO’s equity dropped by 4.4% this week – the fifteenth consecutive week of declines. GO’s equity now ranks as the worst performer since the start of 2011 with a 33.3% slump mainly brought about by the intense selling pressure following the 50% cut in net dividend to €0.05 per share. This morning GO issued its Interim Statement. Further details available here.
  • MIA also maintained the €1.65 level during this morning’s trading session across 4,184 shares. Further offers unsatisfied at the closing price whilst best bids now pitched at the €1.60 level. Yesterday morning, the airport operator held its Annual General Meeting during which shareholders approved all the resolutions including the final net dividend of €0.035 per share which will now be distributed on 17 May. Copy of the presentation given by the CEO of the Company may be viewed from the download section of MIA’s profile on our website at https://rizzofarrugia.com/security-quotes/equities/c1460e/.