Daily Market Highlights (13.03.12)

  • Local equity market in negative territory for the second consecutive session as the MSE Share Index retreats by a further 0.1% to 3,001.989 points. During this morning’s session HSBC’s 0.6% decline offsets BOV’s 0.4% rise whilst MaltaPost ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index closed lower for the eighth consecutive day to a new 3-month low of 985.458 points. Today’s downturn reflects the marginal uptick in the benchmark Eurozone yields as ‘safe-haven’ demand slows down following news of improved sentiment with respect to the German economy and expectations of similar data, expected to be published later on this afternoon, with respect to the United States economy.
  • Subscriptions for the new Corinthia Finance plc bond still open. Corinthia Finance plc is offering €7.5 million in 6% bonds maturing between 2019 and 2022. Existing bondholders of the maturing 6.7% 2012 bonds have until the 16 March to submit their application if they wish to exchange their existing holding with the new bonds. Copies of the Prospectus are available here.
  • Meanwhile, this morning, BOV announced the issue of the second series of Notes under its €125 million Debt Issuance Programme. The first tranche of this second series will encompass €40 million of Notes carrying a coupon of 4.25% and maturing in 2019. Further details will be available in the Final Terms which will be issued on 20 March.
  • This morning, FIMBank published its 2011 full-year results revealing a 35.3% increase in profitability to USD9.1 million. The Directors recommended a net dividend of USD0.02 (2010: USD0.0248) and a 1 for 25 bonus issue to all shareholders as at close of trading on 3 April. Shareholders will have the option to take the dividend either in cash or in new shares. Both the dividend and the bonus shares will be settled on 21 May 2012 subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 10 May 2012. Further details on the results available here. FIMBank shares were inactive today as the results failed to generate any trades on the secondary market.
  • This afternoon, FIMBank issued another announcement with respect to the potential transfer of 38.8% of its share capital from the largest shareholder, Massaleh Investments K.S.C.C. to Burgan Bank. Subsequently, Burgan Bank intends to inject new equity which will increase its potential holding to over 50% thereby initiating a Mandatory bid for the remaining shares. All of this is still subject to the necessary approvals.
  • Increased volumes traded in HSBC Malta shares on the last day for the entitlement to the final gross dividend of €0.072 per share. Despite the entitlement to the dividend, the Bank’s share price eased 0.6% lower to the €2.62 level across six trades totalling just over 67,200 shares. The equity turns ex-dividend as from tomorrow.
  • Meanwhile BOV’s equity maintained its recent upturn with another 0.4% rise during this morning’s session to close at the €2.159 level on volumes of 4,355 shares. Lowest offers in the market at €2.16 and highest bids placed at the €2.15 level.
  • The only other active equity during this morning’s session was MaltaPost which closed the session unchanged at the €0.91 level. 4,155 shares changed hands today with further bids remaining unsatisfied at the closing price and lowest offers at the €0.94 level.
  • The following companies have already scheduled their respective full-year results publication date: Lombard Bank (15 March), GO (16 March), Medserv (21 March) and MIA (22 March). A further six companies with a December year end still haven’t announced when they will publish their full-year results.