Daily Market Highlights (11.04.12)

  • MSE Share Index back into negative territory with a 0.7% drop to a new 35-month low of 2,931.474 points following declines in the share prices of both HSBC and BOV. Meanwhile GO was the only positive performer today whilst IHI, RS2 Software, MaltaPost and Middlesea closed unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged minimally lower to 983.501 points following a slight drop in the bid prices of the Central Bank of Malta. Further volatility was evident in Eurozone yields with the benchmark 10-year yield regaining the 1.72% level as investors reduced demand for Germany’s safe haven assets ahead of a 10-year bond auction by Europe’s powerhouse.
  • This afternoon, BOV announced the allocation policy with respect to the recent €40 million issue of Notes which carry a coupon of 4.25% and mature in 2019. The Bank revealed that applications for the first €25,000 will be accepted in full with a balance of only 36.19% for applications above this level. Interest on these Notes will accrue as from today. Meanwhile, allotment letters and refunds of unallocated monies will take place by not later than next Wednesday 18 April.
  • HSBC slid 2% back to the equity’s 2012 low of €2.50 across six trades totalling 15,580 shares. Other bids unsatisfied at the closing price with lowest offers at €2.537. The Bank is scheduled to hold its Annual General Meeting on 18 April.
  • Similarly, BOV eased 0.7% lower back to the €2.125 level across nine trades totalling 18,188 shares. BOV generally publishes its half-year results (covering the six months ended 31 March) by the end of April.
  • On the other hand, GO recovers from its all-time low of €0.75 as its share price edged 2.7% higher during this morning’s session but on low volumes of 2,000 shares. Nonetheless, GO’s equity is still 21.4% below the 2011 year-end figure reflecting the significant negative impact of the Group’s substantial investment in Forthnet which culminated in a €62.3 million impairment in respect of the 2011 financial year. The quad play telecom operator is scheduled to hold its Annual General Meeting on 9 May.
  • IHI shares were active for the first time since last week’s 2011 full-year results publication. The financial statements revealed a 2.3% increase in revenue as the decline in business at the Tripoli Hotel was offset by growth in all the other Group hotel properties. This improvement helped IHI reduce the loss for the year to €10.4 million compared to the 2009 loss of €12.5 million. Three trades totalling just over 2,900 shares were transacted today at the €0.74 level representing no change from the previous close.
  • A single trade of 40,900 RS2 Software shares was transacted at the €0.55 level, unchanged from the previous close. Yesterday evening the IT Company announced that it will be publishing its 2011 full-year results this coming Friday 13 April.