Daily Market Highlights (24.05.11)

  • Local equity market still characterised by low volumes due to subdued investor sentiment. MSE Share Index down 0.1% to 3,396.069 points as the decline in BOV’s share price offset the rise in GO. Meanwhile the only other active equity, HSBC, closed unchanged. Download a copy of today’s Equity Market Summary.
  • On the local bond market, the bonds of Corinthia Finance plc and International Hotel Investments plc recovered from recent lows with the 6.25% Corinthia Finance plc 2019 climbing 5.1 percentage points to 91.1%. Similarly, the 6.8% IHI plc 2013 jumped by 600 basis points to regain the par level. This recovery follows the recent comments made by the IHI Group Chairman Mr Alfred Pisani with respect to the potential sale of the 12 luxury apartments situated adjacent to the recently opened hotel in London and plans for the injection of new equity to drive further property acquisitions in other key cities such as Paris and Rome.
  • No trades effected in the bonds of Premier Capital plc following yesterday’s announcement that the company has been appointed the developmental licensee for McDonald’s in the Greek market. The Premier Group will be taking over 19 restaurants mainly located in and around Athens and will be responsible for the operation of the current 19 restaurants as well as the future development of the McDonald’s business and brand in Greece. Following the addition of this new market, Premier Capital is now the Development Licensee in five jurisdictions with an aggregate of 54 restaurants, namely: Malta (8), Estonia (10), Lithuania (9), Latvia (8) and Greece (19). Premier Capital stated that it will be commencing operations in Greece on 1 June 2011.
  • The Rizzo Farrugia MGS Index closed marginally lower at 975.366 points as the benchmark Eurozone yields slightly recovered to regain the 3.04% level. Nonetheless, serious doubts on the sustainability of the sovereign debt of peripheral EU countries and the fear of contagion across the whole Eurozone bloc continue to trigger downgrade warnings for Italy and Belgium by international rating agencies.
  • BOV’s share price eased 0.7% back to the €2.81 level across fourteen trades totalling more than 10,000 shares. Best bids now in the market at €2.80 whilst lowest offers still pitched at the €2.82 level. The Bank is scheduled to pay the net interim dividend of €0.0406 per share on 26 May. This afternoon BOV announced that it has submitted an application to the Listing Authority with respect to a Prospectus relating to a 12-month Debt Issuance Programme. The maximum amount to be issued under this Programme shall not exceed €125 million or the equivalent in any other currency. Further details available here.
  • Meanwhile HSBC closed unchanged at the €2.98 level on volumes of just over 2,000 shares. Further bids unsatisfied at the closing price whilst lowest offers now in the market at the €2.99 level.
  • A single trade of 2,000 GO shares transacted at the €1.36 level representing a 0.7% rise from the previous close. Investors eagerly await the publication of Forthnet’s first quarter results to gauge the overall effect on GO’s financial performance and position. GO is scheduled to hold its Annual General Meeting on 8 June.