Daily Market Highlights (17.02.12)

  • MSE Share Index closed in positive territory today with a 0.1% increase to 2,989.290 points as HSBC’s 0.4% rise offset the negative performances in the equities of FIMBank plc and GlobalCapital plc. Meanwhile, the only two other active equities, BOV and MaltaPost, closed unchanged. Download a copy of the Equity Market Summary. Despite today’s marginal rise, the local equity benchmark registered the sixth consecutive weekly decline with another 0.2% drop as half of its constituents traded lower during the past five sessions.
  • On the bond market, the positive run of the Rizzo Farrugia MGS Index was halted today as the local MGS benchmark dipped marginally lower back to 988.758 points. This reflects this morning’s recovery in yields back to the 1.90% level as an agreement of Greece’s next bailout seems to be in reach.
  • Locally, trading activity remained focused on bonds with over €7.8 million worth of corporate bonds and MGS exchanged this week. It is also noteworthy to highlight the fact the all the euro denominated bonds of Mediterranean Investments Holding plc edged higher with the 7.5% bonds maturing in 2014 and 2015 respectively climbing 25 basis points to 100.25% and the 7.15% bond maturing in 2017 climbing 20 basis points to regain the par level.
  • BOV recovered from a 3-month low of €2.14 to close today’s session unchanged at the €2.17 level across fifteen trades totalling just over 30,100 shares. Other offers remain unsatisfied at the closing price with best bids placed at the €2.16 level. The bank’s equity ended this week 2% lower.
  • Meanwhile HSBC edged 0.4% higher this morning to regain the €2.56 level representing a similar weekly increase of 0.4%. 8,000 shares changed hands today with best bids in the market at €2.551 and lowest offers at the €2.59 level. The Bank is scheduled to publish its 2011 full-year results on 24 February.
  • A single trade of 1,330 FIMBank shares was transacted at the US$0.748 level representing a 0.3% drop. The trade finance specialist is scheduled to publish its 2011 full-year results on 12 March.
  • MaltaPost traded again at the €0.95 level today on low volumes of 420 shares. Nonetheless, the equity ended the week 4% lower following the interim statement published earlier this week which revealed the expectation by the Directors of a reduction in profitability for the first half of the year to 31 March 2012. During the first six months of the previous financial year, MaltaPost generated a pre-tax profit of €1.1 million. The lower level of profits reflects the general challenging economic environment, the incidence of higher operating costs and the ‘local letter post’ business which remains loss-making since the postage rates are still not commercially viable. Further details available here.
  • Yesterday, Crimsonwing also published its Interim Directors’ Statement giving an overview of the current financial year ending 31 March 2012. The Directors expect Crimsonwing’s net overall position for the current financial year to be in line with that of the previous year when the Group registered a loss of €109,135 mainly due to the losses incurred at Crimsonwing NL (VDA) business unit following the extensive one-off restructuring costs incurred. Nonetheless, the Directors explained that following the investments undertaken this year to enhance the Group’s capabilities, the Crimsonwing Group is now able to participate in large bids with international clients which, although initially impact operational profitability, have great potential rewards. Crimsonwing also revealed that it was selected as a strategic partner by an international multi-channel retailer for a global eCommerce roll-out across over 50 countries by 2013 and this could result in Crimsonwing implementing over 100 eCommerce sites from mid-2012 onwards and subsequently supporting these businesses. Further details available here. This equity ranks as the worst performer this week with an 11.1% drop across the last five sessions on significant volumes of over 500,000 shares representing almost 2% of the Company’s issued shares.