Daily Market Highlights (17.03.10)

  • MSE Share Index slips 0.2% lower to drop back below the 3,600-point level as BOV, GO and FIMBank close in negative territory. Meanwhile the other three active equities closed unchanged. Download a copy of today’s Equity Market Summary.
  • Preplacement for Premier Capital plc bond issue to take place tomorrow. The development licensee of McDonald’s in Malta, Latvia, Lithuania and Estonia is offering €20 million worth of 10-year bonds (with a €5 million over-allotment option) at a coupon of 6.8% per annum in order to continue expanding in the Baltic States and Malta. Further details available here.
  • IHI recently announced a new bond issue of €25 million 10-year bonds at a coupon of 6.25% per annum. The proceeds are partly earmarked to fund the redemption of the €11.6 million 5% convertible bonds which mature on 29 May 2010 while the balance will be mainly used to fully repay an outstanding loan with an international bank. IHI will be giving preferential allocation to the holders of the 5% convertible bonds. IHI will also be giving preferential allotment to its shareholders and bondholders, together with bondholders of Corinthia Finance plc and Mediterranean Investments Holding plc. Applications open on 23 March. Further details available here. Equity this morning traded unchanged at the €0.80 level on low volumes of just under 6,200 shares.
  • After the 1.4% increase in the previous two sessions, BOV’s share price eases 0.2% lower to close at the €3.29 level. Volumes decline to only 6,000 shares during this morning’s session with best bids still placed at the €3.28 level whilst further offers remain unsatisfied at the closing price.
  • Meanwhile HSBC closes unchanged at the €3.30 level on continued low volumes of just 1,430 shares. Further bids outstanding in the market at the closing price whilst lowest offers still pitched at the €3.35 level. The Bank is scheduled to hold its annual General Meeting on 8 April 2010.
  • GO edges a further 0.5% lower to close at the €2.239 level on just three trades amounting to 2,600 shares. Offers accumulate at the €2.20 level. GO yesterday published its 2009 financial statements showing a 4.5% decline in turnover to €123.7 million as the Group was negatively effected by the international economic climate, the increased competitive environment and by the impact of regulation on certain tariffs. However, revenue from core activities remained strong and the Group continues to offset the decline of traditional fixed-line voice services by maximizing the growth opportunities of broadband and TV services. Also GO stated that it was positively impacted by the results of the BM Group, the data centre operation in which GO acquired a 60% shareholding in April 2009. However the Group explained that the last two financial years were impacted by various one-off transactions. GO’s results were also negatively impacted by the investment in Forthnet. However Forthnet managed to reduce its loss during 2009 and this morning announced a pre-tax loss of €40.5 million (2008: loss of €54.6 million). The GO Group incurred a pre-tax loss of €3.2 million (2008: Profit of €0.3 million) resulting in loss per share of €0.066 (2008: +€0.02). GO recommended the payment of a final net dividend of €0.10 per share to those shareholders as at close of trading on Tuesday 13 April 2010. Further details available here.
  • FIMBank sheds 0.4% to close at the US$1.14 level on just two trades totalling 2,870 shares. Yesterday evening the trade finance specialist published its 2009 full-year results showing a profit after tax of US$1.6 million. While this represents a substantial decline from the US$24.8 million registered in 2008, the sale of shareholding in the Indian joint-venture factoring company Global Trade Finance Ltd in 2008 contributed to a total profit of US$23.8 million. The Group also stated that the outlook for 2010 is more positive and write-backs may be expected. Liquidity and capital adequacy ratios have been maintained at healthy levels and together with continued improvement in efficiencies, more available and diversified access to funding and a more optimistic economic outlook for 2010, the business performance of FIMBank should gradually return to its normal levels. The Directors recommended the payment of a scrip dividend of US$0.01156 per share. Shareholders have the option of receiving the dividend in either cash or by the issue of new shares at a price which still has to be announced. Those shareholders as at close of trading on Thursday 25 March will be entitled to this dividend. Further details available here.
  • IHG Holdings also closes unchanged at the €1.01 level as the equity trades for the first time in almost two weeks. Low volumes of 7,500 shares traded today with further shares on offer at the closing price. Investors have until 14 April 2010 to gain eligibility to the net final dividend of €0.012 per share.

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