Daily Market Highlights (14.12.11)

  • MSE Share Index in negative territory for the second consecutive session with another 0.1% drop to 3,086,810 points due to declines in BOV, Farsons and Crimsonwing.  Meanwhile MIA, GO and FIMBank all edged higher whilst HSBC ended today’s session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index rose 0.2% higher to 985.59 points as Eurozone yields slipped back to just above the 2% level. The drop in yields was due to comments by the German Chancellor Angela Merkel in which she reiterated her country’s opposition to an increase in the size of the European Stability Mechanism. The euro slipped below the US$1.30 level against the dollar for the first time since January 2011 on the possibility of further credit rating downgrades of Eurozone countries amid uncertainties over a solution for the prevailing European sovereign debt crisis. The price of the 5.2% MGS 2031 traded up to a close of 102.60% on high volumes of €378,400 (nominal).
  • BOV closed this morning’s session 1.2% lower at a new 1-month low of €2.49 after failing to hold on to an intra-day high of €2.52. Nine trades totalling just over 20,000 shares executed today with bids already placed higher at €2.491 and lowest offers at the €2.50 level. The Bank is scheduled to hold its Annual General Meeting next Friday. Amongst the resolutions, shareholders will be asked to approve the recommended final gross dividend of €0.08 per share and the 1 for 8 bonus share issue.
  • Meanwhile HSBC traded unchanged at the €2.55 level on lower volumes of 1,333 shares. This afternoon the Bank announced that it will be closing down a total of six branches by mid-March 2012 as part of the Bank’s cost savings plans. Moreover, as announced in its recent Interim Directors Statement, employees will be offered voluntary retirement schemes which will be the main item in the expected one-off restructuring charge of €10 million. Further details on the Interim Directors’ Statement available here.
  • A small deal of 500 GO shares was transacted at the €1.00 level representing a 3.1% increase over the previous close. Forthnet is scheduled to hold an Extraordinary General Meeting tomorrow. During the EGM, Forthnet will ask its shareholders to approve a €30 million rights issue in line with the conditions of the new €90 million bond loan. In the meantime, Forthnet’s share price has slumped to a new all-time low of €0.111 per share.
  • MIA also in positive territory as the equity advanced 2.2% to regain the €1.60 level across two trades totalling 2,234 shares. Other bids outstanding at the closing price whilst lowest offers pitched at the €1.68 level.
  • FIMBank’s share price gains 3.9% to the US$0.769 level on volumes of almost 9,700 shares. However offers already placed lower at €0.74 with no bids in sight.
  • Share price of Simonds Farsons Cisk slumped 5% back to the €1.71 level on low volumes of 1,246 shares. Further bids at the closing price remain unsatisfied with lowest offers at the €2.00 level.
  • A single trade of 2,500 Crimsonwing shares was executed at the €0.25 level – a new 29-month low. No further bids in sight with lowest offers at the €0.30 level.