Daily Market Highlights (16.05.11)

  • Local equity market starts the week with a negative performance as financial equities decline. MSE Share Index down 0.3% to 3,316.497 points as HSBC, BOV and Middlesea trade lower offsetting the rise in the share price of MIA and GO. The other two active equities, namely IHI and Island Hotels, ended this morning’s session unchanged. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index reversed last Friday’s 0.1% decline as it regained the 975.811 points level. Last Friday afternoon, the Treasury announced that it received a total of 3,850 applications for the two new fixed rate Malta Government Stocks for a value exceeding €198 million. As such the Treasury fully satisfied the €67.8 million applications from the general public at the offer price whilst it only allotted €82 million from the auction bids thus leaving a balance of €48 million unsatisfied. The treasury also received a total of €102.65 million in bids for the floating rate stock out of which it allotted the amount on offer of €52 million. Further details on the results of the May 2011 MGS issue is available here.
  • HSBC share price slips 0.7% lower to the €2.94 level on volumes of 4,400 shares. Last Friday HSBC issued its Interim Statement revealing a continued positive performance since the start of the year. The Directors explained that the Bank generated higher income levels but also incurred more costs due to the on-going business expansion and transformation. The Bank also incurred higher loan impairments but not as much as forecasted. In conclusion the Directors reiterated that HSBC Malta maintained a strong liquidity, a stable loan-to-deposit ratio together with capital ratios which are well above regulatory requirements.
  • Similarly, BOV’s share price drops by 0.6% to €2.802 across thirteen trades totalling almost 12,000 shares. Bids already placed at €2.806 with lowest offers at the €2.82 level. The Bank is scheduled to pay the recently announced net interim dividend of €0.0406 per share on 26 May.
  • Middlesea shares also trade 1% lower today to close at the €1.03 level on a single transaction comprising 1,000 shares. Shareholders await publication of details of Mapfre Internacional’s mandatory bid referred to in the Middlesea announcement of 29 April. Further details on this acquisition and mandatory bid available here. BOV, which owns 31.08% of Middlesea, has already declared that it will not accept the bid of Mapfre.
  • Fourth consecutive positive session for GO’s equity. Share price up a further 0.7% to the €1.36 level. Three trades amounting to 6,200 shares transacted today with best bids still placed at €1.34 whilst lowest offers now pitched at the €1.40 level. Recently the Group published its Interim Statement revealing increased overall revenue and operating profits from local operations. However the Group failed to give any indication with respect to the financial performance and position of Forthnet, in which it has a substantial investment through its subsidiary Forgendo. Further details available here.
  • MIA share price up 1.2% to the €1.70 level on volumes of 2,400 shares. Few other offers unsatisfied at the closing price whilst best bids in the market at the €1.68 level. Tomorrow the airport operator is scheduled to pay its final gross dividend of €0.0538 as approved at the recent Annual General Meeting.
  • A further 24,012 IHI shares exchanged at the €0.70 level with further bids and offers outstanding at today’s closing price.
  • MaltaPost shares remain inactive following last week’s interim results publication.. The postal operator reported a 1.4% increase in revenue to €10.7 million during the six months ended 31 March 2011 on the back of continued growth in parcel volumes. However, the Company’s profits marginally declined from €1.2 million for the six months ended 31 March 2010 to €1.1 million during the period under review. This drop was due to the increases in mail costs, utility bills and information systems support costs. Similar to previous years, the Directors did not recommend an interim dividend. Further details available here.