Daily Market Highlights (15.01.10)

  • MSE Share Index in negative territory for the third successive session. Index drops 1.3% during the final session of the week as a result of further selling pressure in HSBC and Middlesea. FIMBank also closes lower while BOV continues to rise. Despite the 2.9% downturn in the last three sessions, the Index closes the seocnd week of 2010 1.1% higher on gains in most active equities. Download a copy of today’s Equity Market Summary.
  • Following yesterday’s ECB announcement that it kept its benchmark interest rate at a record low of 1%, the 10-year benchmark eurozone yield eases to the 3.29% level. As a result the Central Bank of Malta Stockbroker raised its Malta Government Stock bid prices. Meanwhile all the active corporate bonds active today closed unchanged.
  • HSBC sheds a further 3.7% to drop back to the €3.65 level on continued profit taking. Over 11,200 shares trade today with other bids outstanding at the close whilst lowest offers now placed at the €3.67 level. Equity ends the week marginally lower after touching an intra-day high of €4.05 on Wednesday. The Bank is shortly expected to publish its 2009 full-year results and declare a final dividend for shareholders.
  • Meanwhile, BOV share price rises by a further 1.5% to a fresh 20-month high of €3.35 on sustained demand. Almost 16,000 shares change hands today. BOV’s equity closes the week 5.7% higher with the new bonus shares expected to commence trading on Monday.
  • GO holds on to its recent gains and closes the session unchanged at the €2.26 level. 17,300 shares exchanged today with further offers in the market at the closing price. Following last week’s 1.9% increase, GO’s share price rises by a further 5.6% during the last five sessions as investors reacted positively to this week’s interview with CEO David Kay. In the interview the CEO explained that the Group now services over 480,000 connections with strong growth in the TV sector which is expected to continue in the coming months following the acquisition of exclusive broadcasting rights of the Italian and English top leagues as from next season. The CEO also commented that the Group plans to continue reducing headcount to reach its target of 1,000 employees. In conclusion Mr. Kay reassured investors that the recent turmoil in Dubai had no effect on the Group. Moreover in a separate press statement issued yesterday, GO reiterated that the aforementioned sports content could not be broadcast by any other provider in the territory as part of the contractual obligations set by the international content providers of these sports rights.
  • Middlesea closes ‘limit-down’ for the fourth successive session as the equity plunges by a further 7% to the €0.731 level on volumes of over 20,000 shares this morning. Last Monday’s announcement revealing a marked deterioration in claims at the Group’s Italian subsidiary Progress Assicurazioni during the last quarter of 2009 sent the share price into a tailspin to end the week as the worst performing equity with a 22.2% drop. Further details on the announcement available here.
  • FIMBank reverses most of yesterday’s 3.5% upturn as the share price retreats by 2.5% to the US$1.15 level. 17,200 shares change hands this morning with best bids at US$1.14 and lowest offers at the US$1.175 level. Despite today’s decline, FIMBank still closes the week 2.7% higher. The trade finance specialist is scheduled to publish its 2009 full-year results on 16 March.
  • Medserv active for the first time in 2010. All offers in the market amounting to 4,700 shares snapped up.

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