Daily Market Highlights (14.05.10)

  • Local equity market back into negative territory as the MSE Share Index closes minimally lower following the 1.9% decline in the share price of Malta International Airport. All other active equities close unchanged. Index ends the week 0.9% lower as the share prices of the two large banks close lower together with the equities of MIA, Lombard and Plaza Centres. Bond market currently in focus with new issues from Simonds Farsons Cisk plc, Eden Finance plc and the Government of Malta. Download a copy of today’s Equity Market Summary.
  • Subscriptions for the 3 new Malta Government Stock issues take place between Monday 17 May and Wednesday 19 May. The three new stocks are a new 20-year bond with a coupon of 5.25% priced at 99.50%; a fungible issue of the 3.75% MGS 2015 (VI) priced at 102.80%; and a fungible issue of the 4.6% MGS 2020 (II) priced at 102.50%. Copy of Prospectus & Application Forms available here.
  • Earlier this week 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 available here.
  • Eden Finance plc yesterday announced the details of a new 10-year bond issue. Eden will be issuing a €15 million 6.6% Bond maturing between 2017 and 2020. The proceeds will be mainly used to finance the redemption of the outstanding 6.7% Bonds. Existing bondholders will be given preferential allocation if they surrender their existing holding in favour of an equivalent amount of the new Bonds. Further details available here.
  • BOV closes unchanged at the €3.26 level for the third successive session. Almost 15,000 shares exchanged today with best bids still placed at the €3.251 level and further offers remaining unsatisfied at the closing price. The Bank’s equity ends the week 2.1% lower resulting in a 3.1% drop since the interim results publication two weeks ago.
  • HSBC also closes unchanged at the €3.035 level on volumes of 13,000 shares. Equity marginally recovers following last Tuesday’s Interim Directors’ Statement but still closes the week 0.8% lower. In their statement HSBC Directors explained that since the start of the year 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.
  • MIA‘s share price sheds a further 1.9% today to close at the €3.14 level on just 1,400 shares. Further bids outstanding at the close price with lowest offers at the €3.20 level. The airport operator closed the week 3.4% lower possibly due to the publication of the April 2010 traffic results earlier this week. The statistics show a 6.6% decline in passenger departures during the month of April to 116,625 passengers. The airport operator explained that despite the decline in passenger movements during April, the first four months of 2010 still registered an increase of 3.6% over 2009. Further details available here.
  • MaltaPost‘s equity remains supported at its 25-month high of €0.88 as a further 18,957 shares are exchanged at this level during this morning’s session. Further bids remain unsatisfied at the closing price with lowest offers pitched at the €0.89 level. Thursday’s positive reaction to the Company’s half year results helped the equity close 2.3% higher this week. The financial statements show a marginal increase in revenue which was outweighed by higher costs and lower finance income. As a result pre-tax profit dropped by 3.1% to €1.86 million. However profit for the period improved to €1.18 million (March 2009: €1.14 million) on a lower tax charge. Further details on results available here.
  • Lombard also unchanged during this morning’s session as 4,737 shares are exchanged at the €2.90 level. Equity closes the week 1.69% lower.
  • Single trades effected in the equities of Middlesea Insurance and Grand Harbour Marina. The share price of the insurance company closes unchanged at the €0.75 level, representing a 2.7% weekly rise. Meanwhile Grand Harbour Marina shares trade for the first time this week at the €1.98 level.

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