Daily Market Highlights (08.02.10)

  • Following the 4.8% drop in the local equity market in the past two weeks, the MSE Share Index opens this shortened week 0.3% higher at 3,742.154 points. Index pushed higher on gains in HSBC, Middlesea, MIA and MaltaPost offsetting the declines in BOV and Grand Harbour Marina. Meanwhile the other five active equities closed unchanged. Download a copy of today’s Equity Market Summary.
  • Early last week the Treasury announced the issue of 3 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. Two of the new stocks are the 3.75% MGS 2015 (VI) and the 4.6% MGS 2020 (II) (Fungible Issue) both at a price to be determined on Thursday 11 February. The Government is also issuing a Floating Rate bond which matures in 2013 but is only available by tender and subject to a minimum of €250,000. Further details on these new stocks available here.
  • Also last week, Corinthia Finance plc announced that it has submitted an application to the Listing Authority to offer a new bond of €15 million which matures in 2019 but may be redeemed earlier between 2016 and 2019. The new Bond will be guaranteed by Corinthia Palace Hotel Company Limited and will be fungible with the existing 6.25% Corinthia Finance 2019 bond issued last September. Further details of this bond issue is available here.
  • The preplacement for the €10 million Grand Harbour Marina plc bond issue was held this morning while the general public offer opens next Thursday. Meanwhile, GHM’s equity slumps to its ‘limit-down’ price of €1.74 on a miniscule trade of just 534 shares. Best bids already placed higher at €1.80 whilst lowest offers still placed at the €1.87 level.
  • Further selling pressure pushes BOV’s share price lower for the fifth consecutive session. Equity slips a further 1.5% this morning to close at the €3.20 level on low volumes of just under 9,900 shares. Further bids outstanding at the close price whilst lowest offers now placed at the €3.238 level. Last Friday, BOV announced that it has formally submitted an application to the Listing Authority for the admissibility to listing of €50 million 4.8% Subordinated Bonds redeemable in 2020 and subject to an over-allotment option of up to a further €20 million. The proceeds from the Bond Issue will be used to finance the redemption of the existing €46.6 million 6.15% BOV Subordinated Bonds 2010, to further strengthen BOV’s Tier II Capital and for the general financing requirements of the Group. BOV intends to give preferential allocation to the current bondholders of the maturing 6.15% Bonds who surrender their existing holding. Further details available here.
  • Meanwhile HSBC‘s share price rises by 0.8% to regain the €3.79 level. Low volumes also in HSBC as only 4,598 shares trade today with best bids still placed at €3.761 and lowest offers now pitched at the €3.81 level. Last Tuesday HSBC announced that its Board of Directors is scheduled to meet on 22 February to consider and approve the Group’s 2009 annual financial statements and also consider the declaration of a final dividend to be subsequently approved at the next Annual General Meeting.
  • GO maintains its 16-month high of €2.299 on volumes of 18,160 shares. Last week GO announced that its Chairman Mr. Sonny Portelli has tendered his resignation with effect from 10 March 2010 and will be replaced by Mr. Deepak Padmanabhan, a Director of GO since 2006. Further details available here.
  • Renewed demand for MIA shares help the equity jump 6.6% to €3.09 – just below its multi-year high of €3.10. Eight trades amounting to 8,400 shares executed today with best bids now at €2.90 whilst further offers remain unsatisfied at the closing price.
  • A single trade of 3,300 Middlesea shares transacted at the €0.76 level, representing a 4.1% increase from the previous close. Lowest offers already placed below the closing price at the €0.75 level. This morning the Insurance Group announced that it will be convening an Extraordinary General Meeting on 16 March 2010. Shareholders will be asked to approve amendments to the Company’s Memorandum and Articles of Association and will also be possibly asked to elect new members on the Board of Directors should an election be required. Further details available here.
  • MaltaPost edges 2.7% higher to close at the €0.77 level on total activity of 21,000 shares. Offers already placed lower at €0.75 whilst best bids placed at the €0.68 level. On 21 January the postal operator published its September 2009 results showing a 10% increase in pre-tax profits to €3.2 million. Further details of results available here.
  • Simonds Farsons Cisk, Plaza Centres and Medserv all close unchanged on volumes of 3,000 shares each.
  • 6pm Holdings also closes unchanged at the GBP0.50 level on a single trade of 3,650 shares. No demand in sight with other offers in the market at the last traded price.

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