Daily Market Highlights (06.12.11)

  • MSE Share Index back into positive territory with a 0.5% rise to 3,100.004 points on the back of a rebound in the share prices of HSBC and GO. On the other hand, MaltaPost edged slightly lower whilst BOV and RS2 ended today’s session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased 0.1% lower in line with the recovery in yields to the 2.24% level following yesterday’s warning by the S&P of a possible credit rating downgrade of 15 of the 17 eurozone countries including Germany, France, Netherlands, Italy, Spain, Portugal and Malta. The S&P’s warning also impacted the euro which dropped close to the USD1.33 level against the US Dollar but recovered to above the USD1.34 following positive economic data from Germany and increased confidence that EU leaders will manage to reach a solution with respect to the Eurozone sovereign debt crisis.
  • This afternoon the Treasury is expected to publish the results with respect to the tenders lodged for the first ever MGS Switch Auction. Under this Switch Auction, holders of the 5.7% MGS 2012 (III) had the opportunity to switch into the new 4.3% MGS 2016 (IV) by way of tender application. The Treasury will exchange up to €200 million (nominal).
  • HSBC’s share price immediately recovered from yesterday’s 1.2% drop as it registered an equivalent rise today to regain the €2.58 level but on low volumes of 2,000 shares. Best bids in the market at €2.55 whilst lowest offers at the €2.59 level. In the Interim Statement published on 15 November, the Bank announced that it will be incurring a one-off charge of up to €10 million relating to restructuring measures, particularly voluntary retirement schemes.
  • GO also rebounded today as new bids helped the equity rise by 5.3% to regain the €1.00 level on volumes of just over 9,300 shares. Further offers unsatisfied at the closing price whilst best bids still placed at the €0.95 level. Investors now awaiting the outcome of Forthnet’s Extraordinary General Meeting scheduled to be held on 15 December. During this EGM, Forthnet’s shareholders will be asked to approve a number of changes to the company’s capital structure and a €30 million rights issue in line with the conditions of the latest €90 million bond loan.
  • Meanwhile BOV closed unchanged at the €2.50 level across twelve trades totalling over 29,200 shares after it failed to hold on to an intra-day high of €2.519. Other bids outstanding at the last traded price whilst lowest offers now at the €2.52 level.  The Bank’s Annual General Meeting is scheduled for Friday 16 December. During the meeting, shareholders will be asked to approve a number of resolutions including the recommended final gross dividend of €0.08 per share and a 1 for 8 bonus share issue.
  • RS2 Software also unchanged today as 18,000 shares changed hands at the €0.59 level. Lowest offers now in the market at €0.60.
  • The only other active equity, MaltaPost, closed in negative territory with its share price slipping 0.5% lower to €0.975 despite still trading with the entitlement to the final net dividend of €0.04 per share. A total of 8,860 shares traded today. This was the first time that the equity was active since the publication of the postal operator’s full-year results which revealed an 8.7% drop in after-tax profits to €1.9 million. Further details available here. MaltaPost’s equity will turn ex-dividend as from next Wednesday 14 December.