Daily Market Highlights (23.07.10)

  • MSE Share Index surpasses the 3,500-point level for the first time in almost two months. Index up 1.4% today to 3,519.694 points as IHI’s share price jumps 8.9% today following the announcement of a 4% bonus share issue during the tenth Annual General Meeting. BOV, MaltaPost and IHG also trade higher whilst HSBC and MIA close unchanged. Following today’s sharp upturn the Index registered a weekly positive performance for the third consecutive week. Download a copy of today’s Equity Market Summary.
  • IHI this morning held its tenth Annual General Meeting. The Chairman, Mr. Alfred Pisani, kicked-off the meeting by revealing that the Company will be issuing a 4% bonus issue. The new shares will only be allotted to the General Public investors as the three institutional shareholders, (namely Corinthia Palace Hotel Company Ltd, LFICO and Istithmar) have waived their rights to the bonus issue. Furthermore the shareholders will have the facility to sell back their bonus shares to IHI at the nominal value of €1.00 per share representing a 14.9% premium to today’s closing price. In his address, the Chairman also re-iterated the Company’s intention to obtain a secondary listing for IHI on the London Stock Exchange. In view of this, shareholders approved a resolution authorizing the Directors of IHI to issue up to 200 million new shares at a price not less than the nominal value of €1.00 per share. In his address, Mr. Pisani also explained that works on the London property are now in their final stages and the hotel is expected to open to the public early next year.  Fresh bids immediately entered the market helping pushing the share price to a new 2010 high of €0.90 before easing to a close of €0.87 on increased volumes of over 76,000 shares. Equity closed the week as the best performer with an 8.8% increase.
  • BOV edges minimally higher to €3.27 ahead of the EU-wide stress tests results expected to be published this evening. 5,500 shares change hands today with best bids now at €3.26 whilst further offers remain unsatisfied at the closing price. Equity ends the week 0.9% higher.
  • Meanwhile a further 1,644 HSBC shares trade at the €2.99 level, unchanged from the previous close. The Bank closed the week 1.3% lower ahead of next week’s interim results publication due on Friday 30 July.
  • High volumes also evident in IHG Holdings. Ten trades amounting to 69,000 shares executed this morning with the share price closing at the August 2009 IPO level of €1.00. However offers already placed minimally below at the €0.999 level.
  • MIA maintained the €1.60 level on volumes of over 7,100 shares. The airport operator closed the week 1.3% higher following last week’s upward revision in the passenger growth forecast to 8%. Further details available here.
  • MaltaPost continued to recover from its recent declines as the share price rose 3.8% to the €0.85 level on a single trade of 2,104 shares. Combined with the recovery of last Wednesday, equity closed the week 5.5% higher.
  • Earlier this week the Treasury announced the issue of 2 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. The 2 new stocks are the 3.75% MGS 2015 (VI) (Fungible Issue) and the 5.25% MGS 2030 (I) (Fungible Issue). Prices for these stocks will be published on Thursday 29 July. The Treasury is also offering €30 million in a new fungible stock linked to the 6-month Euribor. Further details on the new Stocks and copies of the Prospectuses available here.
  • Last Monday Mediterranean Investments Holding plc (MIH) announced the allocation policy with respect to its recent bond offering. Refunds will be made by next Monday 26 July. Further details available here.

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