Daily Market Highlights (26.10.12)

  • The MSE Share Index edged 0.3% higher today to close at yet another new 14-month high of 3,204.028 points following increases in the share prices of BOV and GO. Meanwhile, the only other active equity, MIA ended the session unchanged. Download a copy of the Equity Market Summary. Over the week, the local equity benchmark rose 0.8% mainly reflecting the weekly increases in the share price prices of BOV and HSBC.
  • On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 995.442 points as Eurozone yields slipped back closer to the 1.5% level as investors seek safe haven assets due to the disappointing corporate profits which are confirming the weak economic outlook.
  • Yesterday, the Treasury published the prices of the 3 new Malta Government Stocks as follows: 3.75% MGS 2017 (IV) FI at 105.00% (YTM: 2.633%); 4.3% MGS 2022 (II) FI at 102.50% (YTM: 3.982%); 4.8% MGS 2028 (I) at 100.75% (YTM: 4.732%). The total aggregate amount is of €100 million subject to an over-allotment option of up to a further €40 million. Subscriptions will open on Monday 29 October.
  • Shortly after the close of today’s trading session, Bank of Valletta plc published its full-year results for the financial year ended 30 September 2012. The Bank registered a record pre-tax profit of €110 million representing a material improvement (+72%) over the previous year’s comparable figure. The results under review were mainly boosted by growth in both net interest income and non-interest income with the later increase mainly relating to the €8.3 million in positive fair value movements on the Bank’s bond portfolio. Non-Interest expenses also increased but at a slower rate. The Bank also incurred €4.6 million in compensation to the Property Fund investors and other clients compared to the €15 million incurred in the previous financial year. Impairment allowances increased for the fifth consecutive year to €22.8 million reflecting the difficult economic environment. On the other hand, the share of profits from associate insurance companies continued to improve to €6.3 million. After accounting for a tax charge of €36.5 million, BOV’s net profit amounted to just under €75 million which translates into an earnings per share of €0.2778. The Directors recommended a final gross dividend of €0.13 per share to all shareholders as at the close of trading on Wednesday 14 November. The Board also recommended a 1 for 9 bonus share issue to all shareholders as at close of trading on Monday 14 January 2013 and will be funded through the capitalisation of €30 million of reserves.
  • On the secondary market, the shares of BOV edged 1% higher to €2.325 prior to the results publication across nine trades totalling just over 18,700 shares.
  • Similarly, GO’s share price moved 1% higher to regain the €1.00 level for the first time since 23 August on volumes of 19,800 shares. This morning, Forthnet issued an announcement to notify the market that it was still holding discussions with WIND Hellas Telecommunications SA on a potential consolidation of business activities and strategic alliance.
  • The only other active equity today was MIA which traded unchanged at the €1.75 level on a single deal of 5,000 shares.