Daily Market Highlights (16.12.11)

  • MSE Share Index edged 0.1% higher during the last session of the week to 3,060.233 points on the back of marginal increases in the share prices of the only two active equities, BOV and MaltaPost. The local equity benchmark ended the week 1.1% lower mainly due to the weekly drops in HSBC and IHI. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index ended the week 0.3% higher at 987.170 points after Eurozone yields fell below the 2% level as European leaders once again failed to reach a solution for the prevailing sovereign debt crisis. On the local stock exchange, €5 million (nominal) of the newly listed 4.3% MGS 2016 (IV) were exchanged in a single deal at 104.71%,  an increase of 78 basis points compared to the weighted average price of the successful bids at the recent auction but 25 basis points below today’s bid price quoted by the Central Bank.
  • Six trades totalling 5,200 BOV shares transacted today at the €2.50 level representing a 0.4% rise from the previous close. Equity closed the week minimally lower. The Bank will be holding its Annual General Meeting this afternoon. Amongst the resolutions, shareholders will be asked to approve the final gross dividend of €0.08 per share and the 1 for 8 bonus share issue.
  • Meanwhile HSBC shares were inactive today thereby ending this week 3.3% lower also at the €2.50 level. Earlier this week, the Bank announced that it will be closing down a total of six branches by mid-March 2012 as part of the Bank’s cost savings plans. Moreover, as announced in its recent Interim Directors Statement, employees will be offered voluntary retirement schemes which will be the main item in the expected one-off restructuring charge of €10 million. Further details on the Interim Directors’ Statement available here.
  • MaltaPost was active for the first time this week moving marginally higher today to close at the €0.955 level representing a 0.5% rise from the previous closing price. A single trade of 2,262 shares was effected this morning. The postal operator is scheduled to hold its Annual General Meeting on 17 January 2012 during which shareholders will be asked to approve the final net dividend of €0.04 per shares as well as the resolution to give shareholders the option to take the dividend either in cash or in new shares at the attribution price of €0.98.
  • Earlier this week, GO’s share price moved 5.3% higher to the €1.00 level. The quad play telecom operator, through Forgendo, requested Forthnet to postpone its Extraordinary General Meeting to 13 January 2012. GO stated that given the current macroeconomic environment in Greece and the adverse impact on Forthnet’s performance, it requires further evaluation of the request made by Forthnet to increase shareholders’ equity through a rights issue. GO added that in their view it is premature for the company, through Forgendo Ltd, to commit any funds to the proposed capital increase. No further trades in GO were transacted this week.