Daily Market Highlights (17.05.10)

  • MSE Share Index reverses last week’s declines as it edges 0.9% higher to regain the 3,537.425-point level. Index moved higher following recoveries in BOV, HSBC and Middlesea. MaltaPost and MIA also in positive territory whilst IHG Holdings drops back to its IPO level. Positive performance also in the bond markets with Malta Government Stocks rising higher reflecting the declining benchmark European yields. Download a copy of today’s Equity Market Summary.
  • Subscriptions for the 3 new Malta Government Stocks opened today. The three new stocks are a new 20-year bond with a coupon of 5.25% priced at 99.50%; a fungible issue of the 3.75% MGS 2015 (VI) priced at 102.80%; and a fungible issue of the 4.6% MGS 2020 (II) priced at 102.50%. The General Public has until next Wednesday 19 May to submit their application. Copy of Prospectus & Application Forms available here.
  • Simonds Farsons Cisk plc recently announced a new €15 million 6% bond issue maturing between 2017 and 2020. This bond will primarily be used to finance the early redemption of the outstanding €9.3 million 6.6% bonds. The balance of the proceeds will be used for the general funding purposes of the Group including a €14 million investment in a new brewhouse and water treatment plant. Following the completion of this project the Mriehel façade will be released for re-development. The Farsons Group will be giving preferential allocation to existing bondholders who exchange their bonds for the new bonds. Further details and prospectus available here.
  • Eden Finance plc is also issuing a new 10-year bond. Eden will be issuing a €15 million 6.6% Bond maturing between 2017 and 2020. The proceeds will be mainly used to finance the redemption of the outstanding 6.7% Bonds. Existing bondholders will be given preferential allocation if they surrender their existing holding in favour of an equivalent amount of the new Bonds. Further details available here.
  • Renewed demand for BOV shares help the equity rise 1.8% to regain the €3.32 level. Almost 13,500 shares changed hands today with best bids now placed at €3.27 whilst lowest offers pitched significantly higher at the €3.40 level.
  • HSBC also edges 0.8% higher to regain the €3.06 level on lower volumes of 5,400 shares. Best bids now in the market at €3.05 whilst lowest offers placed at €3.08. Last week the HSBC explained that since the start of the year the Bank performed strongly and made further progress in improving revenues and controlling costs, while loan impairments weakened modestly as expected. Further details on the interim Directors’ statement available here.
  • A new 26-month high for MaltaPost. Equity jumps 2.3% during this morning’s session to close at €0.90 on volumes of over 10,000 shares. Other bids in the market at the closing price whilst lowest offers now pitched at the €0.91 level. The half-year results published last Thursday show a marginal increase in revenue which was outweighed by higher costs and lower finance income. As a result pre-tax profit dropped by 3.1% to €1.86 million. However profit for the period improved to €1.18 million (March 2009: €1.14 million) on a lower tax charge. Further details on results available here.
  • A miniscule trade of 110 Middlesea shares transacted at the €0.80 level – the highest price level in over four months. Best bids still at €0.75 whilst further offers remain unsatisfied at the closing price. This morning the Insurance Group announced that it registered a profit before tax of €2.8 million during the first three months of 2010 (Q1 2009: loss of €5.3 million). This substantial improvement over last year’s loss is due to the satisfactory performance by its local operations and the closure of its loss-making Italian subsidiary, Progress Assicurazioni.
  • IHI’s share price minimally edges higher to close at the €0.85 level on 2,600 shares. Last Friday IHI published its Interim Directors’ Statement explaining that the international economic conditions have continued to affect the recovery of the hospitality sector with mixed results in the markets in which IHI operates. On the development side, work on the Corinthia Hotel and Residences in London is on track and is expected to be completed on schedule by the end of 2010. Further details available here.
  • GO maintains the €2.12 level as 6,000 shares are transacted over 2 trades. Best bids now placed at €2.06 whilst offer remain unsatisfied at the closing price. The telecoms Group is scheduled to hold its Annual General Meeting this afternoon.
  • Today’s only negative performer, Island Hotel Group Holdings shed 1% to drop back to the €1.00 level – its IPO offer price. No bids in sight with further offers outstanding at the closing price. IHG will hold its first Annual General Meeting as a listed company next Wednesday 19 May.
  • Two trades also executed in MIA pushing its share price up by 0.3% to the €3.15 level. Just over 5,000 shares exchanged with best bids in the market at €3.14 whilst further offers remain unsatisfied at the last traded price. The April 2010 traffic results published last week show a 6.6% decline in passenger departures during the month to 116,625 passengers. The airport operator explained that despite the decline in passenger movements during April, the first four months of 2010 still registered an increase of 3.6% over 2009. Further details available here.
  • RS2 Software trades unchanged at the €0.48 level on a single trade of 1,350 shares. Further bids amounting to 34,500 shares unsatisfied at the closing price with lowest offers now pitched at the €0.56 level.
  • Thin trades executed in Simonds Farsons Cisk and Lombard. Farsons’ equity closed unchanged at the €1.80 level on volumes of 655 shares. Lombard also traded unchanged at the €2.90 level on just 85 shares.

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