Daily Market Highlights (21.08.09)

  • Only the two large caps active today. MSE Share Index eases 0.1% to 3,063.503 points to close the week minimally lower. During this morning’s session HSBC shed a further 0.4% whilst BOV continued to trade at €2.90. No other equities active today as investors await the upcoming results publications. Download a copy of the latest Equity Market Summary.
  • Subdued trading activity also on the bond market. MGS indicative bid prices increased with the 10-year paper closing the week over 100 basis points higher. Only three corporate bond issues trade today with prices generally closing unchanged.
  • Volatile session for HSBC shares. Equity opens marginally higher but slides down to the €2.65 level before fresh demand helps the share price to close just 0.4% lower at €2.67. Increased volumes of 27,193 shares today with best bids in the market at €2.651 whilst lowest offers placed at the €2.71 level.
  • Meanwhile BOV closes unchanged at the €2.90 level for the fifth consecutive session. Only 2 trades totalling 1,444 shares executed this morning with only a few other bids remaining unsatisfied at the closing price whilst lowest offers still in the market at the €3.00 level.
  • Last Wednesday, RS2 Software published its interim results showing a 50% reduction in revenue to €2.7 million. This drop in revenue is due to the Company’s strategy of moving away from licence sales and promoting Comprehensive Package Agreements which smoothen the revenue stream over a longer period. In fact, the Company announced that it concluded two comprehensive package agreements during the first six months of 2009 as opposed to the two licence agreements that materialised in the same period last year. This change in revenue mix also resulted in a substantial drop in profits to €0.2 million. RS2 Software also announced that it has acquired a 26% shareholding in Transworks LLC giving itself a strong foothold in North America. In the results publication, the Directors warned that the Company is experiencing a slowdown in requests for services from existing clients. Equity inactive today but ends the week as the worst performing equity with a 7.7% weekly drop. No bids in the market for this equity with offers already minimally below the last closing price.
  • Also on Wednesday Middlesea Insurance confirmed that its Italian subsidiary Progress Assicurazioni S.p.A continued to experience very difficult trading conditions which will have a material adverse impact on the 2009 half year results due to be published on 25 August.
  • Various interim results expected to be published next week including those of: Middlesea Insurance, 6pm, Lombard Bank and Grand Harbour Marina. GO and Medserv will follow on Monday 31 August.

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