Daily Market Highlights (13.04.11)

  • Positive reaction to RS2 Software’s results announcement helps the local equity market to close in positive territory. MSE Share Index up 0.1% today to 3,441.204 points as HSBC and RS2 trade higher to offset the declines in BOV, GO, MIA and Lombard. Download a copy of today’s Equity Market Summary.
  • Similarly, the Rizzo Farrugia MGS Index edged 0.1% higher this morning to regain the 972.445 points level as eurozone yields this morning continued to retreat back towards the 3.45% level.
  • Strong positive reaction to RS2’s improved financial results announced yesterday evening. RS2 reported a 27.4% rise in revenue to €7.5 million mainly due to the growth in number of licences for the use of the Bankworks software and an 18% increase in service requests. Increase in the Group’s cost base was much lower than the increase in revenue due to the fixed nature of some of the cost items. RS2 posted an EBITDA of €2.4 million which is more than double the 2009 figure and an operating profit of €1.58 million compared to the  operating profit of €0.35 million in 2009. After accounting for a tax credit of just under €1 million, RS2 Software generated a profit for the year of €2.86 million compared to the 2009 profitability of just over €1 million. Given the improved profitability and cash flow generation, the Directors recommend a net dividend of €0.032 per share to all shareholders as at close of trading on Wednesday 27 April. Further details available here. RS2’s share price jumped 42.9% today to close at a fresh 4-month high of €0.50 across thirteen trades totalling 58,665 shares. Best bids now at €0.45 whilst lowest offers placed at the €0.64 level.
  • BOV’s share price recovered from an intra-day low of €2.89 to close at the €2.90 level. Nineteen trades totalling just over 30,000 shares transacted today with further offers unsatisfied at the closing price. The Bank is expected to publish its half-year results to 31 March by the end of April.
  • Meanwhile HSBC again inched marginally higher to regain the €2.96 level across seven trades totalling 20,100 shares. Further offers unsatisfied at the closing price whilst best bids now placed at the €2.94 level. Last week, the Bank held its Annual General Meeting during which shareholders approved all the items on the agenda including a final gross dividend of €0.077 per share which will now be paid on 21 April.
  • Yesterday, MIA revealed a 16.4% rise in passenger movements to the highest level ever recorded in March of 240,360 passengers mainly due to record seat capacity. The March traffic figure includes an amount of 7,465 movements generated from the Libyan-related evacuation flights. Therefore, excluding these one-off movements, the normalised growth rate for the month of March is 12.8%. During the first quarter of 2011, passenger movements increased by 16.5%. Further details available here. Despite the positive passenger numbers, MIA’s share price eased 0.2% lower to €1.755 on volumes of 6,200 shares. No other bids in sight with offers already placed lower at the €1.75 level.
  • Fresh supply pushes GO’s share price a further 2% lower to a 25-month low of €1.45 on low volumes of 3,000 shares. Other offers outstanding at the last traded price whilst best bids still placed at the €1.41 level. The equity turns ex-dividend as from 5 May.
  • Lombard share price also closes lower. Equity in negative territory for the second consecutive session. Share price down another 1% to €2.95 – the lowest level since 27 January 2011. Over 25,000 shares trade today. The Bank is scheduled to hold its Annual General Meeting on 28 April.
  • A further 2,433 Middlesea Insurance shares change hands at the equity’s 11-month low of €0.80. Other bids outstanding at the last closing price whilst lowest offers now pitched at the €0.84 level. Last week the company announced details of the proposed set-off between the accumulated losses on the Profit & Loss Account and parts of the Share premium Account and the Issued Share Capital. The set-off will result in a reduction of the nominal value of the shares from €0.60 to €0.21 per share. Further details available here.