Daily Market Highlights (12.05.10)

  • Local equity market relatively unchanged as all equities close at their previous price levels except for 6pm Holdings. Simonds Farsons Cisk today announced a new 10-year 6% bond issue. Malta Government Stock prices move lower as the eurozone benchmark yield recovers towards the 2.95% level. Download a copy of today’s Equity Market Summary.
  • Last Friday the Treasury announced 3 new Malta Government Stock issues for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. The three new stocks, available for subscription between Monday 17 May and Wednesday 19 May 2010, are a new 20-year bond at a rate of 5.25%; a fungible issue of the 3.75% MGS 2015 (VI); and a fungible issue of the 4.6% MGS 2020 (II). Pricing details are expected to be announced tomorrow afternoon. Copy of Prospectus available here.
  • Today, Simonds Farsons Cisk plc announced a new €15 million 6% bond issue maturing between 2017 and 2020. This bond will primarily be used to finance the early redemption of the outstanding €9.3 million 6.6% bonds. The balance of the proceeds will be used for the general funding purposes of the Group including a €14 million investment in a new brewhouse and water treatment plant. Following the completion of this project the Mriehel façade will be released for re-development. The Farsons Group will be giving preferential allocation to existing bondholders who exchange their bonds for the new bonds. Further details and prospectus will shortly be posted on our website.
  • BOV closes unchanged at the €3.26 level after opening marginally higher at €3.275. Over 15,400 shares exchanged today with further bids unsatisfied at the closing price whilst lowest offers now pitched at the €3.32 level. Recently the Bank published its 2010 Half-Year results revealing a pre-tax profit of €47.5 million, substantially higher than the €6.3 million recorded in the comparative 6-month period to 31 March 2009. The Directors declared a gross interim dividend of €0.075 (net: €0.049) which will be paid on 28 May 2010. Further details available here.
  • HSBC also unchanged today at the €3.02 level after easing from an intra-day high of €3.04. Low volumes of 5,800 shares traded today with further bids outstanding at the last trading price with lowest offers at the €3.08 level. Yesterday HSBC published its Interim Directors’ Statement covering the period from the start of their new financial year on 1 January 2010. HSBC explained that during this period, the Bank performed strongly and made further progress in improving revenues and controlling costs, while loan impairments weakened modestly as expected. Further details available here.
  • Middlesea maintains its recent gains as a further 13,200 shares change hands at the €0.75 level. Further offers remain unsatisfied at the closing price. Recently Middlesea published its 2009 annual results revealing a pre-tax loss of €54.4 million following the full impairment of the investment in Progress Assicurazioni SpA of €63.1 million. Further details available here.
  • GO closes unchanged at the €2.12 level for the third successive session. Four trades amounting to 6,000 shares executed this morning. The telecoms Group is scheduled to hold its Annual General Meeting next Monday 17 May. Last week GO published its Interim Directors’ Statement covering the first quarter of 2010. During this period the GO Group registered growth in turnover and profitability over the comparative period last year from its operations in Malta. Further details available here.
  • Medserv also unchanged at the €4.28 level on volumes of 14,400 shares. No bids in the market whilst few other offers unsatisfied at the closing price. Medserv is scheduled to hold its Annual General meeting on 18 May.
  • 6pm’s share price climbs 3.5% to its limit-up price of GBP0.497 – minimally below its 2010 high of GBP0.50. A single trade of 3,000 shares transacted today with no bids in the market whilst lowest offers already placed outside the trade range at the GBP0.599 level. On Monday 6pm announced that it has deployed an Electronic Document Management System (EDMS) at NHS Haringey in the UK which will support around 600 users. During a stockbrokers’ meeting held yesterday, 6pm’s CEO Mr. Alan West Robinson indicated the potential for similar contracts to come on board later on during 2010.
  • A single trade of 3,250 MaltaPost shares transacted at the €0.86 level, unchanged from the previous close. Further bids outstanding at the closing price with lowest offers still pitched at the €0.87 level. The postal operator is expected to publish its interim results tomorrow.

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