Daily Market Highlights (09.05.11)

  • The local equity market kicked off this week on a positive note following the 1.3% decline registered last week. MSE Share Index recovers by 0.4% to 3,313.735 points. Today’s upturn was mainly due to increases in the share prices of BOV and Middlesea which offset the marginal decline in Lombard. Meanwhile the other five active equities closed unchanged. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index moved a further 0.1% higher to regain the 974.616 points as the Eurozone benchmark yields slid back to the 3.14% level.
  • Today marks the opening of subscriptions for the recently announced Malta Government Stock issues. Both the 4.25% MGS 2017 (III) FI and the 5.25% MGS 2030 (I) FI were priced at 100.75%. The total aggregate amount on offer is of €100 million subject to an over-allotment option of up to a further €50 million. Subscriptions open on Monday 9 May and close on Wednesday 11 May for the General Public. Further details available here.
  • BOV recovered some of last week’s 2.8% drop on fresh demand for the shares on the last day for the entitlement to the recently declared net interim dividend of €0.0406 per shares. Share price up 1.4% to the €2.84 level across twenty trades totalling 11,500 shares. Recently the Bank published its financial statements for the six months ended 31 March 2011 revealing a net profit figure of €30.3 million, 3.8% higher than the €29.2 million recorded in the comparative period in 2010. Further details on results are available here. Equity turns ex-dividend as from tomorrow.
  • Middlesea also in positive territory as investors take positions in anticipation of the mandatory bid shortly expected to be launched by Mapfre Internacional. The latter is currently seeking regulatory approval to acquire Munich Re’s 19.9% shareholding which would place Mapfre as the single largest shareholder of Middlesea with a 50.98% stake. Further details available here. Following last week’s 15.3% jump, the share price of Middlesea moved another 1% higher to €0.99 during this morning’s session on volumes of 5,000 shares. Further offers unsatisfied at the last closing price.
  • Meanwhile HSBC closed the day unchanged at the €2.95 level on volumes of just over 17,000 shares. Further bids unsatisfied at the closing price with lowest offers at the €3.00 level. The Bank is shortly expected to publish its Interim Statement to update the investing public on its performance since the end of 2010.
  • Also in the financial sector, Lombard Bank eased minimally lower to close at the €2.929 level on a small trade of 954 shares. Other offers outstanding at the closing price whilst best bids in the market at the €2.75 level.
  • GO again unchanged at the €1.29 level on low volumes of 2,800 shares with further offers unsatisfied at the closing price. GO’s equity has been under considerable selling pressure with as its share price declining for fifteen consecutive weeks resulting in a 33.3% slump since the start of the year mainly brought about by a negative reaction towards the 50% cut in net dividend to €0.05 per share. Late last week, the Group published its Interim Directors statement revealing that its local operations have continued to grow helping the Group operating profit for the first quarter of 2011 to be marginally ahead of that registered during the same period in 2010. GO also confirmed that it maintained a healthy cash position. Nonetheless, the Group failed to indicate the financial performance and position of the Greek telecom Group Forthnet in which it has a significant investment. Further details available here.
  • High volumes amounting to 73,000 IHI shares trade at the €0.70 level with other offers outstanding at the last traded price. The IHI Group is scheduled to hold its Annual General Meeting on 26 May.
  • MIA also maintained the €1.65 level during this morning’s trading session across four trades totalling just over 8,200 shares. Last week, the airport operator held its Annual General Meeting during which shareholders approved all the resolutions including the final net dividend of €0.035 per share which will now be distributed on 17 May. Copy of the presentation given by the CEO of the Company may be viewed from the download section of MIA’s profile on our website at https://rizzofarrugia.com/security-quotes/equities/c1460e/.
  • No change also in the share price of RS2 Software as 9,600 shares were traded at the €0.50 level. Tomorrow will be the last day for investors to gain entitlement to the net dividend of €0.032 per share declared with respect to the 2010 financial year. Offers still placed at €0.52 whilst best bids pitched at the €0.50 level.