Daily Market Highlights (21.11.11)

  • Local equity market reverses part of last week’s 2.5% rise as IHI’s 7.1% drop forced the MSE Share Index to close 1.3% lower at 3,166.685 points. Crimsonwing also in negative territory with a 14.3% plunge whilst HSBC, BOV and GO all closed unchanged. Download a copy of today’s Equity Market Summary.
  • Eurozone yields this morning retreated from last Friday’s level of 1.94% back to the 1.88% level on the back of deteriorating economic date from Asia, the increasing possibility of a downgrade in France’s credit rating and reports that the U.S. super committee has failed to reach an agreement on budget deficit reduction measures. Moreover markets have now turned their focus on how the newly elected Spanish Government will handle the country’s sovereign debt crisis. In line with the decline in yields, the Rizzo Farrugia MGS Index edged marginally higher to 981.198 points.
  • In contrast to last Friday’s 4% jump, IHI’s share price this morning slumped 7.1% from its 8-month high of €0.84 back to close the day at the €0.78 level. Low volumes affected today with only two trades totalling 1,000 shares.
  • Meanwhile BOV held on to last week’s 2.5% increase as the equity closed unchanged at the €2.50 level. More than 18,300 shares changed hands today.
  • HSBC also unchanged today at the €2.69 level. Just over 2,000 shares changed hands today. In the Interim Statement published last week, the Directors revealed that trading conditions remained challenging and a more difficult 2012 is expected. In response to this, the Directors approved a cost-savings plan which will result in a one-off charge of approximately €10 million for the 2011 financial year. Further details available here.
  • Similarly, GO maintained last week’s gains of 3.9%. A small deal of 801 GO shares was transacted at the €1.06 level, unchanged from the previous close.
  • Crimsonwing’s share price fails to hold on to last Friday’s gains as 7,508 shares traded at the €0.30 level, representing a 14.3% drop from last Friday’s close. The IT Company is shortly expected to publish its half-year results covering the six months ended 30 September 2011.
  • MIA issued its Interim Directors Statement today updating the market on the Company’s’ performance since the publication of the half-year financial statements on 30 June 2011. During the period under review, the financial position of the Company remained sound with further growth in passenger traffic. In fact, MIA recently increased its 2011 passenger growth forecast from +3.2% to a rise of at least 4.5%. Overall, the Directors expect the 2011 figures to be ahead of the 2010 pre-tax profit figure of €17 million. Further details available here.
  • Plaza also issued its Interim Directors’ Statement this morning covering the third quarter of 2011. The Directors explained that during the period under review, the Company reported satisfactory results compared to the corresponding period last year due to increased revenue from the new extension which added a further 1,600 square metres of rentable space. On the other hand, the main increase in expenditure was attributed to the finance costs incurred with respect to the funding required for this extension. Occupancy levels remained high and are expected to be maintained during the fourth quarter of 2011. Further details available here.