Daily Market Highlights (14.04.11)

  • MSE Share Index tumbles 2.5% to 3,353.942 points, representing a new 6-month low, as IHI slumped 15.8% on low volumes. BOV also in negative territory today whilst RS2 edged a further 6% higher during this morning’s session. The other active equities (HSBC, GO and Lombard) closed unchanged. Download a copy of today’s Equity Market Summary.
  • On the other hand, the Rizzo Farrugia MGS Index closed in positive territory for the third consecutive session as its value increased by another 0.2% to a new 2-week high of 974.787 points. This reflects the recent downturn in the benchmark Eurozone yields to the 3.42% level.
  • Further renewed demand for RS2 shares evident today following the improved financial results announced on Tuesday 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. 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. This morning, RS2’s share price climbed a further 6% to a new 5-month high of €0.53 on volumes of 39,135 shares. Other bids unsatisfied at the last traded price with lowest offers at the €0.64 level.
  • A small deal of 700 IHI shares transacted at a fresh 66-month low of €0.699 representing a 15.8% slump from the previous close as selling pressure mounts following the political unrest in Libya. Other offers in the market at the last traded price whilst best bids now placed at the €0.60 level.
  • BOV’s share price down 0.3% below the €2.90 level for the first time since 21 March. Over 7,000 shares change hands today with best bids in the market at €2.88 whilst lowest offers placed at the €2.90 level. The Bank is expected to publish its half-year results to 31 March by the end of April.
  • Meanwhile HSBC held on to the €2.96 level across three trades totalling 9,220 shares. 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.
  • Lombard Bank also unchanged at the €2.95 level on volumes of 26,500 shares after the initial deal of 25,000 shares was transacted at the €2.98 level. The Bank is scheduled to hold its Annual general Meeting on 28 April.
  • GO also maintains the €1.45 level across four trades totalling 4,000 shares. Further offers outstanding at the closing price whilst best bids now placed at the €1.42 level. The equity turns ex-dividend as from 5 May.