Daily Market Highlights (09.02.10)

  • Local equity market in positive territory for the second consecutive session on renewed demand across a number of equities. MSE Share Index rises by 1.5% to just under the 3,800 mark as Index heavyweights BOV, HSBC and IHI all trade higher. FIMBank and Middlesea also rise whilst GO and MaltaPost edge lower. 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.
  • Yesterday evening, Grand Harbour Marina announced that it has received applications substantially in excess of the amounts reserved for preferred applicants’ (shareholders and berth owners) and for financial intermediaries during the pre-placement stage. Since the total demand substantially exceeded the €6 million available, Grand Harbour Marina stated that save for any unexpected circumstances, the issue of €10 million bonds together with the over-allotment option of a further €2 million is likely to be subscribed immediately upon the opening of the issue period on the 11 February 2010. Equity inactive today with best bids already placed placed higher than the last closing price of €1.74.
  • Fresh bids for BOV shares helps the equity recoup yesterday’s decline. Share price rises by 3.1% to €3.299 on volumes of just over 11,000 shares. 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.
  • HSBC also recovers some of last week’s drop as the share price rises by a further 0.8% to regain the €3.819 level despite low volumes of 1,400 shares. Last week 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.
  • IHI up 2.6% to €0.80 as it trades for the first time in almost two weeks. Increased volumes of over 17,000 shares change hands today with best bids still in the market at €0.78 whilst lowest offers now pitched at the €0.82 level.
  • Meanwhile GO edges minimally lower to the €2.297 level on volumes of 5,700 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 interest for Middlesea shares helps the equity close in positive territory for the second consecutive session. Share price jumps 6.6% to €0.81 on two trades amounting to 3,452 shares. Yesterday 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.
  • FIMBank rises 3.5% to regain the US$1.18 level on low volumes of 5,700 shares. The Bank is due to publish its 2009 full-year results on 16 March.
  • MaltaPost reverses yesterday’s rise as the share price slips 2.6% to drop back to the €0.75 level. Only 4,000 shares trade this morning with lowest offers placed at the €0.77 level. The postal operator is scheduled to hold its Annual General Meeting on 24 February.

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