Daily Market Highlights (26.07.10)

  • Following last week’s 1.1% rise, the MSE Share Index closes minimally higher this morning to reach 3,523.026 points as IHI’s 2.3% increase offsets the declines in HSBC, BOV, GO and FIMBank. Four other equities close unchanged. Download a copy of today’s Equity Market Summary.
  • Last Friday’s Annual General Meeting triggered high trading volumes in IHI. Over 350,000 shares change hands today with the share price closing 2.3% higher at €0.89 after again easing from its 2010 high of €0.90. In his address to the AGM, Chairman Mr Alfred Pisani, confirmed that works on the London project are in their final stages and the hotel is expected to open to the public early next year. Moreover the Chairman stated that the secondary listing of the Group’s shares in London is also well underway. Moreover, as later confirmed by a company announcement, Mr Pisani revealed that the free float shareholders on the Company’s register as at 31 December 2009 will be eligible for a 4% bonus issue. Furthermore the shareholders will have the facility to sell their bonus shares to IHI at the nominal value of €1.00 per share.
  • Successful completion of stress tests fails to lift BOV’s share price. BOV’s equity eases 0.3% lower back to €3.261 despite the stress tests results confirmed that BOV is a well-capitalised bank with capital ratios above regulatory requirements.  BOV currently has a Tier 1 capital ratio of 10.5% which under the stressed scenario applied by the EU dropped to 9.3% – still 330 basis points above the 6% level “pass mark” of this test and more than double the regulatory requirement of 4%. Further details on the stress test results available here. Only 2,655 shares trade today with best bids at €3.26 whilst lowest offers now pitched a the €3.268 level.
  • HSBC also closes 0.3% lower at the €2.98 level ahead of next Friday’s interim results publication. Low volumes of 3,000 shares trade today with further offers outstanding at the close price.
  • FIMBank sheds 0.5% to close at US$1.00 across two trades totalling 1,838 shares. Best bids now pitched at US$0.95 whilst lowest offers placed at the US$1.04 level.
  • MIA also unchanged at the €1.60 level ahead of next Thursday’s interim results publication. Increased volumes of over 20,600 shares exchanged today with best bids still in the market at €1.50 whilst lowest offers now pitched at the €1.61 level.
  • MaltaPost unchanged at the €0.85 level on volumes of almost 5,600 shares. Best bids still in the market at €0.82 whilst lowest offers now pitched at the equity’s 2010 high of €0.90.
  • Last week the Treasury announced the issue of 2 new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €50 million. The 2 new stocks are the 3.75% MGS 2015 (VI) (Fungible Issue) and the 5.25% MGS 2030 (I) (Fungible Issue). Prices for these stocks will be published on Thursday 29 July. The Treasury is also offering €30 million in a new fungible stock linked to the 6-month Euribor. Further details on the new Stocks and copies of the Prospectuses available here.

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