Daily Market Highlights (25.02.10)

  • Trading activity in the equity market contracts as investors focus on bond market. MSE Share Index in negative territory for the third successive session as it drops another 1% to just above the 3,600 level on further declines in BOV and HSBC. Meanwhile, the only other active equity, IHG Holdings closes unchanged. Download a copy of today’s Equity Market Summary.
  • Existing bondholders of the maturing 6.5% Corinthia Finance bonds wishing to roll-over their investment into the new bonds on offer must submit their application form by this afternoon (5 pm). Meanwhile the Intermediaries Offer for the bonds not taken up by preferred applicants will take place on 1 March. Further details of this bond issue is available here.
  • HSBC continues to slip following last Monday’s 2009 full-year results publication. Share price closes 2.9% lower at €3.30 after recovering from an intra-day low of €3.251. Decreased volumes of just under 11,200 shares exchanged today with best bids now at €3.251 whilst further offers remain unsatisfied at the closing price. Since the 2009 accounts were published on Monday afternoon, HSBC’s equity had declined by 14.5%. The 2009 financial statements revealed a 25.9% drop in pre-tax profit to €71.2 million as net operating income declined by 15.2%. Meanwhile HSBC Malta reported that loans and advances increased by 3.7% to €3.2 billion while deposits edged 1.7% higher to €4.1 billion. The Directors recommended a final gross dividend of €0.08 per share for approval at the forthcoming Annual General Meeting on 8 April 2010. Shareholders as at close of trading next Monday 1 March will be entitled to this dividend. Further details available here.
  • BOV’s equity minimally impacted by the downturn in HSBC. BOV eases only 0.3% to close at the €3.35 level also on low volumes of 6,220 shares. The BOV Group is issuing €50 million 4.8% Subordinated Bonds with an over-allotment option of another €20 million due in 2020. Existing bondholders of the maturing 6.15% BOV 2010 Bonds have until 3 March to submit their application to be eligible to switch the redeeming bond into the new 4.8% bonds. Further details available here.
  • Island Hotels Group Holdings trades for the first since the Group published its maiden results. Equity unchanged at the €1.01 level on thin trades amounting to just 400 shares. On Monday Island Hotels Group Holdings plc issued a preliminary profit statement for the year ended 31 October 2009. For comparative reasons, the Group published proforma results for the full-year to 31 October 2009 since the holding company was only registered at the end of July 2009. During the year, the Island Hotels Group registered a 14% drop in turnover to €32.3 million. The Group’s profit before tax during 2009 declined by 33% to €3.3 million (2008: €4.8 million). Despite the decline in tourism in 2009, the Group stated that it registered a comparatively positive set of results mainly due to the mix of business models used by the Group’s portfolio of hotels. The Directors recommended a final net dividend of €0.012 per share for shareholders as at close of trading on Wednesday 14 April 2010. Further details available here.
  • Simonds Farsons Cisk today announced that its Board of Directors approved an investment of €14 million in a new brewhouse, a quality control laboratory and a water treatment plant. The Directors explained that the new Brewhouse will be fully automated leading to improved product consistency, decreased production costs and sufficient capacity for the foreseeable future. Further details available here. Equity inactive during this morning’s session with best bids placed at €1.68 whilst lowest offers in the market marginally higher than the last closing price of €1.70.
  • Yesterday, Medserv announced that its Board of Directors is scheduled to meet on Thursday 8 April to consider and approve the 2009 Annual Financial Statements. The Directors shall also consider the declaration of a final dividend. Equity also inactive today with no bids in sight whilst lowest offers pitched at the last closing price of €4.25.

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