Daily Market Highlights (21.05.10)

  • Local equity market again in negative territory. MSE Share Index eases 0.2% to close at 3,537.534 points as increases in the share prices of BOV, MIA, Lombard and RS2 Software are outweighed by the declines in HSBC and IHI. Despite the downturn in the last two session of this week, the Index still registered a weekly increase of 0.9% – reversing the equivalent drop of the previous week. Download a copy of today’s Equity Market Summary.
  • BOV’s share price rises 2.1% to regain the €3.37 level as demand intensifies to close the week 3.4% higher. Low volumes of 6,883 shares exchanged today with few other bids remaining unsatisfied at the closing price whilst best bids now placed at the €3.35 level. The Bank is scheduled to pay its gross interim dividend of €0.075 (net: €0.049) per share on Friday 28 May.
  • Meanwhile HSBC eased 0.7% to drop back to the €3.06 level also on low volumes of 8,676 shares. Despite today’s decline, the equity still closed the week 0.8% higher.
  • IHI also shed 3.5% to drop back to the €0.82 level on thin volumes of only 596 shares. Following today’s downturn, the share price of IHI closed the week 3.4% lower. Recently the IHI Group published their interim Directors’ statement explaining that international economic conditions have continued to affect the recovery of the hospitality sector with mixed results in the markets in which IHI operates. Overall, there are indications of a gradual recovery in the second half of 2010 especially in the last quarter of 2010. Further details available here.
  • Middlesea trades marginally lower for the second consecutive session. Equity closed this morning’s session 0.6% down at €0.88 on seven trades amounting to 14,230 shares. Nonetheless, the Insurance company still ranks as the best performing equity with a weekly increase of 17.3% following a positive reaction earlier this week with respect to the Group’s Interim Directors’ Statement publication on Monday. The statement revealed that the Middlesea Group 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.
  • A single trade of 25,850 RS2 Software shares was transacted this morning at the equity’s ‘limit-up’ price of €0.513, representing a 6.9% increase. Further offers in the market at the last trading price whilst best bids still placed at the €0.48 level. Equity active for the first time since the Group’s Interim Directors’ Statement publication last Tuesday. The Directors revealed that during the first quarter of 2010 RS2 concluded a licence contract with a new client whilst one of its major clients will be transferring all its operations onto the BANKWORKS platform. However requests for services from existing clients did not improve from the previous year’s level. Further details available here.
  • Lombard recovers from recent declines as the share price climbs 2.5% to regain the €2.92 level. Just over 1,300 shares changed hands today with further offers outstanding at the closing price. Recently the Bank announced the admission of 479,111 new shares to the Official List as a result of the scrip dividend issue. The take-up represents an acceptance rate of 62.9% resulting in an increased total number of shares in issue to 36,092,692 shares.
  • FIMBank retreats by 0.9% back to the US$1.08 level to close the week unchanged. A single trade of 1,000 shares executed today with further offers remaining unsatisfied at the closing price whilst best bids now pitched at the US$1.01 level.  This morning FIMBank published its interim Directors’ Statement explaining that the general pipeline of business is growing with the performance for the period under review being very satisfactory. However, the statement explains that the environment in emerging countries where FIMBank is most active remains challenging and certainly not helped by protracted concerns in the developed economies especially the Eurozone. The FIMBank Group continues to enjoy strong capital and liquidity ratios backed by a healthy and growing balance sheet. Further details available here.
  • High volumes of over 54,000 shares trade in GO. The telecoms equity closed unchanged at the €2.12 level for the fourth time this week. The telecoms Group held its Annual General meeting earlier this week during which the shareholders approved all the items on the agenda including a net dividend of €0.10 per share. This dividend is expected to be paid tomorrow.
  • MIA edges 0.3% higher to close at the €3.15 level across four trades amounting to 8,226 shares. Earlier this week Ryanair inaugurated its base in Malta. The low cost airline is also basing an aircraft in Malta to run six new routes to Valencia, Seville, Bologna, Krakow, Billund and Marseille.
  • 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. Equity traded unchanged during this morning’s session at the €1.80 level on volumes of just under 6,800 shares.
  • 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.
  • The treasury is shortly expected to announce the result of the three new Malta Government Stock Issues.

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