Daily Market Highlights (27.05.10)

  • Local equity market moves lower for third consecutive session. MSE Share Index declines by 0.4% to close at 3,517.645 points as share prices of HSBC and BOV decline possibly in reaction to yesterday’s publication of the Financial Stability Report 2009 by the Central Bank of Malta which stated that local banks might need to increase their capital. GO also in negative territory whilst Medserv and IHI edge higher. Download a copy of today’s Equity Market Summary.
  • Preferred applicants with respect to the bond issue of Simonds Farsons Cisk plc have until tomorrow to submit their application form. The General Public offering will then open on 1 June. Farsons is issuing a €15 million 6% bond maturing between 2017 and 2020. This bond will primarily be used to finance the early redemption of the outstanding €9.3 million 6.6% bonds. The balance of the proceeds will be used for the general funding purposes of the Group including a €14 million investment in a new brewhouse and water treatment plant. Further details and prospectus available here.
  • Eden Finance plc’s preferred applicants’ period with respect to the new €15 million 6.6% bond issue is now closed. The General Public Offering will open next Monday 31 May. The proceeds will be mainly used to finance the redemption of the outstanding 6.7% Bonds. Further details available here.
  • Negative reaction to yesterday’s publication by the Central Bank of Malta forces BOV’s share price lower for the third time this week. Equity loses a further 1.5% to close at the €3.30 level on volumes of 7,965 shares. Further bids remain unsatisfied at the €3.30 level with lowest offers pitched at €3.35. Tomorrow, BOV is scheduled to pay its gross interim dividend of €0.075 (net: €0.049).
  • HSBC also negatively affected following the comments made by the Governor of the Central Bank of Malta that local banks might need to further strengthen their capital. Share price eases 0.3% lower to the €3.04 level on volumes of just over 12,800 shares. Further offers remain unsatisfied at the closing price with few bids in the market at €3.03.
  • GO also drops a further 1.4% to the €2.08 level on a single trade of 3,000 shares. Following today’s decline, the share price of the telecoms company has lost 9.6% since touching a 2010 high of €2.30 last February. Forthnet, GO’s Greek investment, yesterday published its financial results for the first three months of 2010. The results show that by the end of March 2010, Forthnet managed to increase its customer connections across all the services it offers. Revenues grew by 10.1% to €99.4 million. However this increase was offset by a larger rise in marketing, promotional and content costs resulting in a lower earnings before interest, tax, depreciation and amortisation (EBITDA) of €16.6 million compared to €18.4 million in the corresponding period last year.
  • Meanwhile IHI marginally recovers to close at the €0.83 level on volumes of 10,000 shares. Best bids still placed at €0.825 whilst lowest offers now pitched at the €0.895 level. Recently the IHI Group published their Interim Directors’ Statement explaining that international economic conditions have continued to affect the recovery of the hospitality sector with mixed results in the markets in which IHI operates. Overall, there are indications of a gradual recovery in the second half of 2010 especially in the last quarter of 2010. Further details available here.
  • Medserv also in positive territory as its share price rises by 0.5% to regain its all-time high of €4.30. 10,000 shares change hands today. The recent Interim Directors’ Statement revealed delays in contracted works which will now commence in the third and fourth quarter of 2010. Further details of the announcement available here.
  • A single trade of 2,350 RS2 Software shares executed at the €0.53 level, unchanged from the previous close. In its Interim Directors’ Statement published last week the IT Group revealed that it concluded a licence contract during Q1 2010. However, requests for services from existing clients since the start of this year have remained in line with the levels of 2009. Further details available here.
  • Santumas Shareholdings plc active for the second time this week. Following last Wednesday’s 3.9% drop, the share price fell by a further 0.8% this morning to close at a fresh 44-month low of €2.48 on a single trade of 1,250 shares. Few other bids remaining unsatisfied at the closing price whilst lowest offers still pitched at the €2.60 level.
  • Last Friday, the Treasury announced that it received a total of 2,677 applications for the three new Malta Government Stocks for a value exceeding €232 million. The Treasury announced that it allotted a total of €150.1 million (nominal) as follows: €18.1 million in the 3.75% MGS 2015 (VI) FI, €38.3 million in the 4.6% MGS 2020 (II) FI and €93.7 million in the 5.25% MGS 2030 (I). Further details available here. The new stocks are expected to be listed shortly with trading expected to commence soon after.

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