Daily Market Highlights (24.08.09)

  • Very thin volumes traded during this morning’s session on the Malta Stock Exchange. MSE Share Index rises 0.7% to 3,083.560 points as BOV jumps 3.5% whilst FIMBank and GO trade unchanged. No other equities active today as investors await the upcoming results publications. Download a copy of the latest Equity Market Summary.
  • Increased volumes in the corporate bond market as 10 bonds are active today with mixed performances. The 6% Gasan Finance 2014 -2016 declines by 100 basis points to the par level whilst the 4.6% HSBC 2017 gained 10 basis points to 101.20%.
  • Fresh demand emerges for BOV shares in the last moments of the session to help the share price jump 3.5% to the €3.00 level – just marginally below its 2009 high. Only 3,924 shares exchanged today with lowest offers now in the market at the €3.05 level and best bids at €2.90.
  • Meanwhile HSBC remains inactive today with bids at €2.65 and offers at €2.80.
  • FIMBank trades unchanged at the US$1.289 level on a miniscule trade of just 169 shares. Few trades effected in FIMBank’s equity since the publication of its interim results on 13 August During the first half of the year, the FIMBank Group generated a pre-tax profit of US$2.4 million. In the first six months of 2008 the trade finance bank had recorded a profit of US$34 million but this was boosted by the US$29.2 million gain on sale of its shareholding in the factoring company in India Global Trade Finance Limited (GTF) as well as the share of profits from this associate company which have not been repeated in 2009. Further details of results available here.
  • GO also trades unchanged at the €1.28 level on a single trade of 1,000 shares. Further offers at the closing price with best bids pitched closely at the €1.79 level. The telecoms Group is expected to announce its 2009 half year results on 31 August.
  • Last week, 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 still inactive with no demand present in the market and offers already placed minimally below the last closing price of €0.599.
  • Various interim results expected to be published this week including those of Middlesea Insurance, 6pm Holdings, Lombard Bank, GlobalCapital and Grand Harbour Marina. GO and Medserv will follow on Monday 31 August.

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