Daily Market Highlights (07.04.11)

  • Few trades affected in the local equity market. HSBC only mover of the day with a drop of 0.7% to €2.93. MSE Share Index down a further 0.2% to a fresh 5-month low of 3,448.180 points. On the Alternative Companies List, Loqus Holdings maintained its previous price level of €0.161 on a solitary trade. Download a copy of today’s Equity Market Summary.
  • The Rizzo Farrugia MGS Index eased 0.1% lower this morning to a new 22-month low of 972.561 points as the benchmark 10-year Eurozone yield reached the 3.44% in anticipation of the interest rate hike by the European Central Bank.
  • This afternoon, market expectations were met as the ECB announced its first interest rate increase since 2008 on the back of accelerating inflation in Europe. The Bank raised its reference rate by 25 basis points hike to 1.25% and some analysts expect the ECB to announce further increases during the course of 2011. On the other hand, some analysts are criticising the ECB for this move as it could adversely affect countries, such as Portugal, Spain and Ireland, which are finding it difficult to cope with their respective sovereign debt.
  • After holding on to the €2.95 level for the two previous sessions, HSBC retreated by 0.7% today to close at the €2.93 level across four trades totalling 15,000 shares. Further bids unsatisfied at the closing price whilst lowest offers still pitched at the €2.96 level. This evening the Bank will hold its Annual General Meeting while the net final dividend of €0.05 per share will be paid on 21 April.
  • Meanwhile BOV shares were inactive during this morning’s trading session with lowest offers pitched at the last closing price of €2.92 and best bids in the market at the level of €2.905. Half-year results to 31 March expected to be issued by the end of April.
  • GO unchanged at the €1.49 level after recovering from a new 2-year low of €1.461 across eight deals amounting to 18,000 shares. Further offers unsatisfied at the closing price whilst best bids now placed at the €1.46 level. The equity will turn ex-dividend as from 5 May.
  • Today FIMBank plc announced that FIM Holdings plc, the new parent of the FIMBank Group, published a Prospectus in connection with an Exchange offer to all shareholders of FIMBank plc. FIMBank plc shareholders on the share register as at 30th March 2011 will be offered an equal amount of shares in the new holding company, thus effectively replacing the FIMBank plc shares which are currently listed on the Official List of the Malta Stock Exchange. The change in the Group’s structure is primarily aimed at optimizing the tax burden of the FIMBank Group. Further details available here. Separately FIMBank plc also announced an attribution price of USD0.85 per share for those shareholders opting to receive new shares rather than a cash dividend.
  • Last week 6pm Holdings plc announced that it published a Prospectus with respect to a rights issue of 10,788,000 new ordinary shares at the price of £0.25 per share. Shareholders are entitled to subscribe to 1.4384 new shares for every share held. The rights issue opens on Monday 11 April and closes on Friday 29 April at 14.00 hours. Further details available here.
  • On the Alternative Companies List, Loqus Holdings traded unchanged at the €0.161 level on a single trade of 500 shares. Further bids outstanding at the closing price whilst lowest offers still in the market at the €0.18 level.