Daily Market Highlights (11.02.10)

  • MSE Share Index edges higher for the third successive session. Volumes across the equity market however shrink as investors focusing on the upcoming bond issues. Index rises by a further 0.5% to move above the 3,800 points mark as the continued recovery in the share price of the two large banks offsets the 6.2% drop in Middlesea. Download a copy of today’s Equity Market Summary.
  • Prices of the new fixed rate Malta Government Stocks expected to be published later on this afternoon. The two new fixed rate stocks are the 3.75% MGS 2015 (VI) and the 4.6% MGS 2020 (II) (Fungible Issue). 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. The 3 new issues are for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. 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.
  • In line with Grand Harbour Marina’s announcement last Monday, the General Public Offer for the €10 million bonds together with the over-allotment option of a further €2 million was closed immediately after opening this morning due to oversubscription. Details of total demand and allocation will be published in the next few days. Equity remains inactive today with best bids already placed higher than the last closing price of €1.74.
  • BOV share price rises another 1.6% to regain the €3.35 level but volumes remain low with only 598 shares changing hands today. Bids of over 7,000 shares remain unsatisfied at the closing price with lowest offers now placed at the €3.45 level. Last week, 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 continues to recover from its recent decline with the share price edging 0.8% higher to regain the €3.85 level. Over 22,600 shares exchanged today with best bids already placed higher at the €3.86 level. 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.
  • GO reverses last Tuesday’s decline to regain its multi-year high of €2.299 on two trades amounting to 2,000 shares. Also 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.
  • Middlesea share price slides 6.2% to a close of €0.76 in reaction to this morning’s announcement. The Insurance Group stated that its Italian subsidiary, Progress Assicurazioni, requires a further material injection of capital support in order to continue in business in conformity with Italian regulations. The Directors explained that a new capital injection is not feasible and as a result Middlesea informed the Italian Insurance Regulators (ISVAP) that it wishes to cease the operations of Progress Assicurazioni Spa. Further details of announcement available here. Recently Middlesea also announced that it will be convening an Extraordinary General Meeting on 16 March for shareholders to approve amendments to the Company’s Memorandum and Articles of Association and possibly also to elect new members on the Board of Directors.
  • Single trades of 1,000 shares transacted in each of FIMBank and GlobalCapital. Both equities close unchanged at US$1.18 and €1.90 respectively.

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