Daily Market Highlights (25.04.12)

  • Local equity market in positive territory for the third consecutive session. MSE Share Index moved marginally higher today as HSBC’s 0.8% increase offset the 0.9% drop in BOV’s share price. Meanwhile, the only other active equity, IHI, held on to yesterday’s strong gains and ended the session unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index eased marginally lower to 986.162 points as Eurozone yields recovered to the 1.72% level following low demand for this morning’s 30-year and 10-year German bond auctions. On the secondary market, high volumes registered in some government paper with over €3 million (nominal) exchanged in the 6.35% MGS 2013 (II) and over €2 million (nominal) traded in the 4.8% MGS 2016 (II).
  • The share price of BOV initially traded up to €2.14 where a total of 100,000 shares traded. However, lack of support for the equity at this level forced the price to drop to €2.10 representing a decline of 0.9% from yesterday’s close. A total of 133,813 BOV shares changed hands today across seventeen trades. BOV is scheduled to announce its interim results next Friday 27 April.
  • Meanwhile HSBC reversed yesterday’s 0.8% drop with an equivalent increase during today’s session to regain the €2.52 level across two trades amounting to 28,900 shares. The Bank is scheduled to pay the final gross dividend of €0.072 per share on Friday.
  • The only other active equity was IHI which held on to yesterday’s strong gains as a further 8,000 shares changed hands at the €0.82 level. Earlier this week, IHI announced that it will be inviting a number of potential investors consisting primarily of sovereign funds and other institutions, to participate in the subscription of new shares through a private placement.
  • Shortly after the close of today’s trading session, the Farsons Group published its preliminary statement of results covering the twelve months ended 31 January 2012. The accounts show a 6% rise in revenue to a record €70.85 million mainly due to an increase in the export segment. However, operating profit only increased by 1.5% to just below €6.4 million as margins declined due to increased competition as well as rising costs of raw materials. On the other hand, profit for the year jumped by 25% to €4.7 million due to the non-recurrence of a write-off in relation to a terminated property lease incurred during the financial year ended 31 January 2011. Given the improved profitability, the Directors proposed a final net dividend of €0.0567 (up 6.3% from the previous year’s final dividend) to all shareholders as at close of trading on 17 May. Combined with the net interim dividend of €0.1333 per share paid on 21 October 2011, the total net dividend in respect of the financial year ended 31 January 2012 amounts to €0.07 per share representing a 4% net dividend yield at the current price of €1.77 per share.
  • MIDI is scheduled to close off the full-year results reporting season with the publication of its 2011 financial statements on Monday 30 April.