Daily Market Highlights (25.04.11)

  • Local equity market kicks-off this week in positive territory spearheaded by the marginal recovery in the share price of the two large banks and the positive reaction towards Farsons’ strong set of results. MSE Share Index up 0.3% to 3,333.008 points as increases in HSBC, BOV, Farsons and Middlesea outweigh the declines in GO, Medserv and RS2. Download a copy of today’s Equity Market Summary.
  • Farsons’ share price climbs 5.9% to regain the €1.80 level on the back of the strong set of financial results published last week. The financial statements for the year ended 31 January 2011 revealed a 36.1% rise in profitability due to increased revenue as well as lower operational costs. The Directors recommended a final net dividend of €0.0533 to all shareholders as at close of trading on 19 May. Together with the interim net dividend, the total net dividend of €0.0667 per share represents an 11.2% increase over the previous year’s dividend.
  • HSBC’s equity edges 0.3% higher during this morning’s session to regain the €2.92 level on a single trade of 5,938 shares. Further bids unsatisfied at the closing price whilst lowest offers now placed at the €2.96 level.
  • Similarly, BOV inches 0.5% higher to close at the €2.895 level ahead of next Friday’s half-year results publication covering the six months ended 31 March 2011. Nine trades totalling 12,560 shares transacted today with best bids in the market at €2.88 with lowest offers at the €2.90 level.
  • Selling pressure in GO intensifies as volumes reach over 52,000 shares. Equity down another 2% to €1.40 after partially recovering from a fresh all-time low of €1.399. Other offers outstanding at the closing price whilst best bids now placed at the €1.33 level. The equity turns ex-dividend as from 5 May.
  • Medserv share price down 4.8% as it traded for the first time since 3 February. Equity opened at a new 18-month low of €3.98 before partially recovering to a close of €4.00. Further offers unsatisfied at the closing price. Last week, Medserv held its Annual General Meeting during which the Directors explained that the financial performance in 2011 is improving as the company is managing to service its existing and new clients from the Malta base. Although this positive performance is expected to continue during the second quarter of 2011, the second six months of this year are still very uncertain given the prevailing political turmoil in Libya. The Directors also explained that following a review of the second half forecasts at the half-year stage, the Board will consider the payment of an interim dividend.
  • RS2 Software retreated by 2.1% back to the €0.519 level despite still trading with the entitlement to the net dividend of €0.032 per share. A single trade of 15,000 shares transacted today with best bids now placed at €0.41 whilst lowest offers pitched at the €0.52 level. Investors have until 10 May to gain entitlement to the net dividend.
  • A small deal of 100 Middlesea Insurance shares executed at the €0.89 level representing a 6% rise over the previous close. Few other offers unsatisfied at the closing price whilst best bids now placed at the €0.857 level.