Daily Market Highlights (15.04.11)

  • Only three equities active today as investors remain passive possibly due to the unresolved political crisis in Libya. MSE Share Index edges 0.1% higher to 3,356.012 points on the back of minimal recoveries in BOV and IHI. Meanwhile HSBC closes today’s session unchanged at €2.96. Despite today’s upturn, the Share Index still ended the week in negative territory for the eleventh consecutive week with a further 2.4% weekly drop which results in an 11.3% slump since the beginning of the year. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased 0.1% lower to 973.804 points. Nonetheless, the local MGS benchmark still ended the week 0.2% higher in contrast to the negative performances in the previous three weeks.
  • BOV’s share price edged 0.2% higher to regain the €2.895 level across eight trades totalling 12,250 shares. Despite today’s upturn, the equity still closed the week lower for the second consecutive week with another 0.2% decline. The Bank is expected to publish its half-year results to 31 March by the end of April.
  • Meanwhile HSBC again closed unchanged at the €2.96 level on volumes of 6,700 shares with further bids unsatisfied at the closing price whilst lowest offers now pitched at the €2.98 level. During the last five sessions the equity gained 1%.  Last week, the Bank held its Annual General Meeting during which shareholders approved all the items on the agenda including a final gross dividend of €0.077 per share which will now be paid on Thursday 21 April.
  • Following yesterday’s 15.7% plunge, IHI’s equity stabilised at the €0.70 level representing a marginal increase over the previous close. Three trades totalling 5,800 shares transacted today with further offers outstanding at the last traded price whilst best bids now placed at the €0.65 level. The equity ranks as the worst performer of the week and also ranks amongst the worst performing equities since the start of the year with 25.9% drop.
  • No deals effected in RS2 shares today in contrast to the strong reaction in the previous two sessions which lifted the IT Group’s share price by 51.4% to a new 5-month high of €0.53, placing the equity as the best performer this week. Equity now also currently ranks as the top performer since the start of the year with a 10.4% jump although the current price is still below its IPO price of €0.80 per share. Last Tuesday RS2 revealed a substantially improved set of financial results including a 27.4% rise in revenue to €7.5 million, an EBITDA of €2.4 million which is more than double the 2009 figure, a tax credit of just under €1 million and a profit for the year of €2.86 million compared to the 2009 profitability of just over €1 million. Given the improved profitability and cash flow generation, the Directors recommend a net dividend of €0.032 per share to all shareholders as at close of trading on Wednesday 27 April. Further details available here.
  • This afternoon MIA announced that it issued a Fuel Ground Handling tender which provides for a significantly reduced fuel handling user fee from €12.50 per 1,000 litres to €2.60 per 1,000 litres which should result in a revenue decline of €1.2 million every year. Moreover, media reports revealed that yesterday the Malta Environment and Planning Authority (MEPA) approved an extension for parking facilities at the SkyParks Business Centre and also considering a new Master Plan for the entire area as submitted by MIA. Further details available here.