Daily Market Highlights (15.03.12)

  • MSE Share Index back in negative territory as its slipped 0.6% lower during this morning’s session to 2,987.249 points. Today’s decline follows the drops in the share prices of IHI and FIMBank which offset the minimal increase in BOV’s equity. On the other hand, HSBC, Lombard and GO ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the negative trend of the Rizzo Farrugia MGS Index enters its tenth consecutive session with another 0.14% drop to a new 14-week low of 983.15 points. The downturn in the local MGS benchmark in recent days reflects the sharp recovery in Eurozone yields which touched the 2% level this morning. International market sentiment improved on the back of a better outlook for the world economy as well as a respite in Greece’s sovereign debt crisis after the country managed to successfully complete a debt swap with private investors and subsequently obtain its second bailout amounting to €130 billion.
  • Subscriptions by preferred applicants for the new Corinthia Finance plc bond close tomorrow. Corinthia Finance plc is offering €7.5 million in 6% bonds maturing between 2019 and 2022. Copies of the Prospectus are available here.
  • Earlier this week, BOV announced the issue of the second series of Notes under its €125 million Debt Issuance Programme. The first tranche of this second series will encompass €40 million of Notes carrying a coupon of 4.25% and maturing in 2019. Further details will be available in the Final Terms which will be issued on 20 March.
  • On the equity side, IHI slid 2.6% during this morning’s session to close at the €0.76 level across three trades totalling 6,385 shares. The IHI Group still have to announce the date of their respective 2011 financial results publication.
  • In contrast to yesterday’s immediate strong positive reaction to the news of a possible takeover of FIMBank plc by Burgan Bank, FIMBank’s equity lost some of its momentum during today’s trading session on the Malta Stock Exchange. The share price of FIMBank reversed some of yesterday’s 20% increase as it slid 5.6% lower to the USD0.85 level on volumes of 100,000 shares. Earlier this week, FIMBank informed the market of a possible transfer of shares amounting to 38.8% of the total issued share capital from the largest shareholder Massaleh Investments K.S.C.C. to Burgan Bank. Furthermore, Burgan Bank subsequently intends to inject new equity which will increase its potential holding to over 50% thereby initiating a Mandatory bid for the remaining shares. The above transactions are subject to the necessary approvals.
  • Also this week, FIMBank published its 2011 full-year results revealing a 35.3% increase in profitability to USD9.1 million. The Directors recommended a net dividend of USD0.02 (2010: USD0.0248) and a 1 for 25 bonus issue to all shareholders as at close of trading on 3 April. Shareholders will have the option to take the dividend either in cash or in new shares. Both the dividend and the bonus shares will be settled on 21 May 2012 subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 10 May 2012. Further details on the results available here.
  • Meanwhile BOV’s share price edged minimally higher to close this morning’s session at the €2.16 level on volumes of just over 14,300 shares. Other bids remaining unsatisfied at the last traded price with lowest offers at the €2.17 level.
  • HSBC Malta held on to the €2.58 level on volumes of 26,835 shares with further offers remaining unsatisfied at the closing price. The Bank is scheduled to hold its Annual General Meeting on 18 April.
  • Likewise, Lombard’s share closed unchanged at the €2.52 level on a single deal of 2,000 shares. This afternoon, Lombard published its preliminary 2011 results, revealing a 20.9% drop in profitability to €6.6 million. The drop in profits was mainly due to the significant increase in net impairments to €2.2 million reflecting the Bank’s prudent approach to lending especially in the prevailing challenging economic conditions. The Directors proposed an unchanged final gross dividend of €0.115 per share to all shareholders as at close of trading on 20 March.
  • GO also unchanged at the €0.838 level ahead of tomorrow’s full-year results publication. 11,600 shares changed hands this morning with few other offers in the market at the closing price and highest bids at the €0.78 level.
  • The following companies have already scheduled their respective full-year results publication date: GO (16 March), Medserv (21 March) and MIA (22 March). A further six companies with a December year end still haven’t announced when they will publish their full-year results.