Daily Market Highlights (26.05.11)

  • Very shallow trading registered during this morning’s session due to the prevailing subdued investors’ sentiment. MSE Share Index eased minimally lower as the 0.3% drop in the share price of BOV outweighed the 0.7% rise in GO. No other equity was active today. On the local bond market, the Rizzo Farrugia MGS Index also slid 0.1% lower to regain the 974.941 points as the benchmark Eurozone yields marginally recovered to the 3.05% level. Download a copy of today’s Equity Market Summary.
  • BOV’s share price declined by 0.3% back to the €2.80 level across eight trades totalling 10,753 shares. Further offers unsatisfied at the closing price whilst best bids now placed at the €2.791 level. Today the Bank paid out the net interim dividend of €0.0406 per share. Earlier this week, 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. Meanwhile in a surprise announcement this afternoon BOV announced a conditional offer to acquire the eligible shares held by them in the La Valette Multi Manager Property Fund for a consideration of €0.75 per qualifying share. Further details available here.
  • Meanwhile the equity of HSBC Bank Malta plc was inactive during this morning’s session with offers outstanding at the last closing price of €2.985 and best bids pitched at the €2.97 level.
  • On the other hand, GO edged 0.7% higher to regain the €1.37 level on volumes of 7,500 shares. 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.
  • Plaza Centres this afternoon issued their Interim  Statement explaining that since the start of 2011 the Company maintained a satisfactory level of performance in line with the Directors’ expectations. Moreover Plaza noted that the new wing, which was opened in March 2011, is already 85% occupied with negotiations for the remaining spaces underway. The overall occupancy rate is 92% which is expected to increase by the third quarter of this year.
  • Yesterday, GAP Developments plc published their 2010 financial results. The accounts revealed a €6.9 million loss due to a €6.6 million reduction in the book value of the property held for development and resale. The Directors explained that sales enquires continued to be encouraging. However sales prospects to foreign nationals were adversely impacted by the Government’s decision to stop issuing residency permits for non-EU nationals. The annual report also reveals that in March 2011 shareholders injected additional funds amounting to €5 million and are expected to inject a further €2 million in the near future to ensure the financial sustainability of the Company.
  • Bonds of Premier Capital plc remained inactive despite last Monday’s announcement that the company has been appointed as 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.