Daily Market Highlights (09.07.10)

  • The MSE Share Index climbed 1.1% higher to just below the 3,400-point mark as HSBC and BOV gain following yesterday’s reassuring comments by BOV’s Chairman and CEO. The only other active equity today, Medserv, closed unchanged at the €4.25 level. Following today’s upturn in the banking sector, the Index ended this week in positive territory for the first time in seven weeks. Middlesea was this week’s best performer with a 9.3% jump whilst MaltaPost ranked as the worst performer with a 5.6% drop.  Download a copy of today’s Equity Market Summary.
  • General Public offering of the bond issue by Mediterranean Investments Holding plc opens next Monday 12 July. The 7-year bond carries a coupon of 7.15% and is being issued in three currencies – euro, US Dollar and Sterling. Further details available here.
  • BOV’s share price rises 2.3% to regain the €3.069 level as investors reacted positively to yesterday’s press conference by the Bank. The Chairman and CEO reassured investors that BOV will comfortably pass the stress tests imposed by the European Union as the Bank itself performs these exercisess on a regular basis. The Chairman also assured shareholders that BOV will not be required to cut dividends to meet the new regulations which will require banks to hold further capital. Five trades amounting to 5,000 shares transacted today with bids already placed higher at €3.10 whilst lowest offers now pitched at the €3.20 level.
  • HSBC’s share price also positively affected by the reassuring comments from BOV. Equity advances by 2.1% to regain the €2.91 level on volumes of over 14,000 shares. Best bids in the market now placed at €2.90 whilst lowest offers placed at the €2.95 level. Today, the Bank announced that its Board of Directors will meet on 30 July to consider and approve the financial statements for the six months ended 30 June. The Directors will also consider the declaration of an interim dividend.
  • Medserv unchanged at the €4.25 level on a single trade of 1,400 shares. No bids in sight with further offers remaining unsatisfied at the closing price.
  • MaltaPost today published its Interim Directors’ Statement explaining that the performance since 1 April to date has been in line with that recorded in the comparable period last year. Moreover the Directors do not forsee any circumstances which will impede the postal operator to achieve profitability levels in line with those reported last year. Equity failed to trade today with best bids at €0.80 whilst further offers remained unsatisfied at the last closing price of €0.85.
  • The 8% BOV USD 2010 Bonds remain fairly active as a further USD88,000 (nominal) change hands during this morning’s session. The bond price slipped 20 basis points to the 100.80% ahead of redemption on 2 October 2010. This morning the Stock Exchange announced that a further USD231,000 of these bonds were cancelled after being bought back by BOV. As a result the total amount of outstanding BOV Dollar bonds is now USD36,209,000.
  • Earlier this week, Tumas Investments plc announced the allocation policy with respect to the recent bond issue. The Company received 4,436 applications for a total value of just under €43 million. The 1,109 applications received from preferred applicants will be accepted in full. With respect to the other 3,327 applications submitted in the general public offering the first €4,000 will be met in full whilst only 5.312% of the balance (rounded to the nearest hundred) will be accepted. Refunds will be paid by not later than next Friday 9 July. Further details available here.

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