Daily Market Highlights (09.03.11)

  • Second successive positive performance in BOV lifts MSE Share Index higher. Share Index up a further 0.6% today to 3,588.819 points as BOV’s 2.4% rise outweighed the minimal decline in GO. Meanwhile the only other active equity, HSBC, closed unchanged. Trading activity shrinks to only €75,885 worth of shares traded across only three equities. Download a copy of today’s Equity Market Summary.
  • The Rizzo Farrugia MGS Index again closed marginally lower as it retreated by 0.1% to 976.340 points. Following last week’s comments by the President of the European Central Bank that an interest rate hike is possible in April due to increasing inflationary concerns, yesterday the German ECB Governing Council member Axel Weber indicated that there could be as many as three hikes of 0.25% each raising ECB’s rate to 1.75% by year-end.
  • Fresh demand for BOV shares helped the equity to close higher for the second consecutive session. Share price up another 2.4% to €2.969 across seven trades totalling over 11,300 shares. Further offers unsatisfied at the closing price whilst best bids now placed at the €2.92 level. Last week, Fitch downgraded BOV’s long-term credit rating to ‘BBB+’ citing the concentration risk embedded in the Bank’s loan portfolio as the main reason for the downgrade. Further details available here.
  • Meanwhile HSBC closed unchanged at the €2.94 level on volumes of only 1,250 shares. Other offers outstanding at the last traded price whilst best bids still placed at the €2.92 level. The final gross dividend of €0.077 per share will be paid on 21 April following approval by the shareholders at the upcoming Annual General Meeting to be held on 7 April.
  • GO again manages to recoup from a new 16-month low of €1.72 to close minimally below the previous closing price at the €1.749 level. Twelve trades totalling 22,500 shares traded today with few other offers remaining unsatisfied at the last traded price whilst best bids still in the market at the €1.70 level. Similar negative trend in the share price of Forthnet – GO’s Greek investment. Forthnet share price hit a high of €0.71 on 15 February before sliding back to around the €0.50 level. Both GO and Forthnet have not yet published their 2010 financial results.
  • Last week FIMBank and Plaza issued their respective results but few trades transacted in each of the equities. Lombard Bank is next in line to publish its results tomorrow followed by the results of Middlesea Insurance (14 March), Grand Harbour Marina (15 March), Malta International Airport (17 March) and Medserv (21 March).

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