Daily Market Highlights (14.05.12)

  • Following last Friday’s 0.5% increase, the MSE Share Index advanced by a further 0.2% during this morning’s session to close at 2,985.545 points as IHI’s 2.4% rise offsets BOV’s 0.9% drop. Meanwhile the only other active equity, GO, ended this morning’s session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index edged higher for the third consecutive session with another marginal increase to a new 6-month high of 991.113 points as Eurozone yields tumbled to an all-time low of 1.434%. The downturn in yields follows the increased uncertainty over Greece’s future in the Eurozone. Greece is preparing itself for a fresh round of elections after the main parties failed to form a coalition government. The Greek political parties opposing the country’s austerity measures, which were agreed to as part of the Greek bailout, are expected to obtain the majority of votes in the fresh election to be held next month. Furthermore, market concerns over Spain’s ability to control its budget deficit led to a record spread of 477 basis points between Spanish and German bond yields.
  • GO’s share price spent most of today’s trading session at a new all-time low of €0.70 with over 800,000 shares changing hands at this level. However the share price regained the €0.74 level by the end of the day on lack of further offers and further sizeable bids entering the market at the all-time low. A total of 819,673 shares changed hands today. Last week, GO ended the week 3.9% higher following a positive reaction to the Annual General Meeting and the announcement regarding the transfer of properties which will result in a gain of €11.4 million in the income statement during 2012. During the Annual General Meeting, GO also announced that it set up a new holding company for the various properties it owns and will be seeking advice on the best way to extract value from such properties.
  • BOV eased by 0.9% today to the €2.10 level, just €0.01 above its 2012 low. Seven trades amounting to 5,500 shares were transacted this morning with further bids unsatisfied at the closing price and lowest offers at the €2.12 level. The Bank is expected to pay the recently declared gross interim dividend of €0.06 per share on 24 May.
  • Meanwhile HSBC remained inactive today with few bids in the market at the last closing price of €2.55 and lowest offers at €2.579. Last Friday, HSBC published its Interim Directors’ Statement covering the performance since the start of the year. The statement revealed that the HSBC Malta Group returned a solid performance mainly due to the improved profitability in the life insurance business which in turn was lifted by the recovery in international financial markets. The Directors reiterated that the bank remains highly liquid with a strong loan to deposit ratio and capital ratios well above regulatory requirements.
  • On the other hand, IHI edged 2.4% higher to regain the €0.84 level on volumes of 168,000 shares. IHI also issued its Interim Directors Statement last week to update investors on the Group’s performance during the first three months of the year. The IHI Group reported improvements in performance mainly due to the recovery in the Tripoli Hotel as well as the London Hotel. The Directors explained that the improved results have been registered in the first quarter of 2012 despite the difficult economic conditions in the markets in which the Group operates.
  • Last Friday evening, MIDI published its Interim Directors’ Statement in which it stated that 12 of the 22 apartments in Pjazza Tigne are subject to a promise of sale agreement. MIDI indicated that the company’s focus will now turn onto construction works related to the T14 office block and the two residential apartment blocks known as T17. Construction on this phase is expected to start later on this year and will take two years to complete. Meanwhile, the commercial operations of the Group continued to return encouraging results with increasing footfall at The Point shopping mall and higher utilisation levels of the underground car park. Further details available here. MIDI’s equity was inactive during today’s trading session with no bids in sight and offers placed minimally below the last closing price of €0.34.