Daily Market Highlights (15.05.12)

  • Local equity market in positive territory for the third consecutive session with a further 0.3% rise in the MSE Share Index to 2,993.429 points on the back of increases in the share prices of BOV and GO. On the other hand, Lombard Bank’s equity ended this morning’s session lower whilst Island Group shares closed unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index was marginally unchanged at 991.063 points with minor changes in the indicative bid prices quoted by the Central Bank of Malta. Eurozone yields partially recovered later on this morning from yesterday’s all-time lows following the news that the German economy avoided a recession and grew by 0.5% in the first three months of 2012.
  • After GO’s equity touched a fresh all-time low of €0.70 yesterday, no further offers were placed on the market today and the share price edged 2.7% higher to €0.76 on a single trade of only 1,000 shares. Other offers unsatisfied at the closing price whilst best bids now placed at the €0.74 level.
  • BOV recovered by 1% to regain the €2.12 level also on low volumes of 5,554 shares. Support for BOV’s equity is increasing at the €2.10 level with offers at €2.12. The Bank is expected to pay the recently declared gross interim dividend of €0.06 per share on 24 May.
  • Meanwhile HSBC shares inactive for the second consecutive session with few bids in the market at the last closing price of €2.55 and lowest offers at the €2.56 level. 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.
  • Lombard Bank’s share price eased by 0.8% to a new 2012 low of €2.35 across a single deal of just over 1,000 shares. Other bids outstanding at the last closing price whilst lowest offers pitched at the €2.36 level.
  • A miniscule trade of 500 shares in Island Hotels Group Holdings took place at the €0.85 level, unchanged from the previous close. Island Hotels will be holding its Annual General Meeting on Thursday 17 May.
  • This morning, Grand Harbour Marina published its Interim Directors’ Statement covering the performances of its two marinas during the first quarter of 2012 – the Grand Harbour Marina in Malta and the IC Cesme Marina in Turkey (in which it holds a 45% beneficial interest). GHM reported a 16% increase in berthing revenue at the marina in Malta to €0.35 million on the back of continued high occupancy levels and a moderate rise in berthing tariffs. However, no super-yacht berth sales were concluded during the first quarter of 2012 but GHM stated that there is an interesting pipeline of opportunities and the Board of Directors continues to believe that the securing of long-term berths remains a matter of timing. In Turkey, berthing revenues doubled during the first three months of the year to €0.3 million while retail activity revenues grew by 36% to €0.18 million. Equity inactive with no bids in the market whilst lowest offers pitched below the last closing price at the €1.85 level.
  • Shortly after the close of today’s session, GlobalCapital also issued its Interim Directors’ Statement revealing an overall improvement in its operating results during the first quarter of 2012.