Daily Market Highlights (14.03.12)

  • Local equity market in positive territory for the first time this week on the back of a 20% jump in the share price of FIMBank. This resulted in a 0.1% rise in the MSE Share Index to 3,006.063 points. Meanwhile, the two other active equities, HSBC and Lombard, traded lower. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased by 0.1% to yet another 3-month low of 984.550 points as Eurozone yields sprung above the 1.91% level for the first time in almost a month. This morning’s upturn in yields follows yesterday’s positive economic data from Germany as well as the likewise positive announcements from the US indicating that the North American economy is generally improving.
  • 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.
  • Yesterday, 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.
  • Sharp increase in volumes across FIMBank shares during this morning’s session fuelled by takeover talks following yesterday’s announcement regarding the possible transfer of 38.8% of the Group’s share capital from the largest shareholder, Massaleh Investments K.S.C.C. to Burgan Bank. Furthermore, Burgan Bank subsequently 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. Following this announcement, FIMBank’s share price surged by 20% to a close of USD0.90 on high activity totalling 1,094,500 shares, representing 0.8% of the issued share capital.
  • Yesterday, FIMBank also 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.
  • HSBC Malta shares slip 1.5% lower to the €2.58 level as equity turned ex-dividend. 25,200 shares exchanged today with best bids placed at €2.55 and lowest offers at the €2.615 level. The Bank is scheduled to hold its Annual General Meeting on 18 April.
  • Similarly, Lombard’s share price eased 0.4% lower to the €2.52 level on a small deal of 400 shares. The bank is scheduled to publish its 2011 full-year results tomorrow.
  • 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.