Daily Market Highlights (28.03.12)

  • Local equity market in negative territory for the third consecutive session with the MSE Share Index shedding a further 0.7% to a new 33-month low of 2,949.403 points. Declines in BOV and IHI offset the increase in Lombard with another four active equities trading unchanged. Download a copy of the Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index stumbled to a new 4-month low of 980.907 points with a further 0.1% decline as eurozone yields moved closer to the 1.91% level this morning. Optimism in international markets is rising as Italy managed to sell €8.5 billion worth of 6-month Treasury Bills at 1.119% – the lowest rate since September 2010. Moreover, the German Chancellor Angela Merkel confirmed in a statement that the sovereign debt crisis is waning and as such she expects that her country’s borrowing costs will rise in the near term as investors no longer seek the safe haven status of Germany.
  • Next Friday marks the deadline for submission of applications at the pre-placement stage (for a minimum of €100,000) in relation to the issue of the second series of Notes of BOV under its €125 million Debt Issuance Programme. The first tranche of this second series will encompass €40 million of Notes carrying a coupon of 4.25% and maturing in 2019. Further details on the new notes together with copies of the Final Terms and other relevant documentation available here.
  • On the equity market, BOV continued to reverse from its recent recovery with another 2.2% decline to the €2.151 level across eight trades totalling 9,677 shares. This month marks the end of the BOV Group’s half-year end with the interim results generally published by the end of April.
  • Likewise, IHI slipped 1.3% lower to the €0.74 level on increased volumes of 64,847 shares with best bids in the market at €0.71 and lowest offers at the €0.75 level. The IHI Group is scheduled to publish its 2011 full-year results next Thursday 29 March.
  • Meanwhile, Lombard Bank’s share price edged 0.8% higher to regain the €2.52 level on low volumes of 1,600 shares. The Bank is scheduled to hold its Annual General Meeting on 24 April.
  • HSBC’s equity held on to the €2.52 level after recovering from an intra-day low of €2.50. Volumes increased to over 63,000 shares with the large majority dealt at the €2.50 level.  The Bank is scheduled to hold its Annual General Meeting on 18 April.
  • GO also unchanged at the €0.80 level across two trades totalling 25,000 shares. The GO Group is scheduled to hold its Annual General Meeting on 9 May.
  • MIA’s equity held on to the €1.70 level on a single deal of 2,000 shares. The financial results published last week revealed an 11% increase in net profits to €11.9 million mainly due to the 2.1% growth in revenue to €52.4 million which in turn was mainly the result of the 6.5% rise in passenger movements in 2011 to a record 3.5 million passengers. The Directors recommended a final gross dividend of €0.0615 per share (representing a 14.3% increase over the previous year’s final dividend) to all shareholders as at close of trading on 3 April. In total, MIA declared a gross dividend of €0.1077 for 2011 compared to €0.10 in 2010. Further details available here.
  • Likewise, a single trade of 300 Medserv shares was transacted at the €3.95 level – unchanged from the previous close. Last week, the Medserv Group published its 2011 full-year results which revealed a significant improvement in profitability to €761,358 compared to €118,850 in 2010. This improvement was due to the alignment of costs to the significantly lower level of business activity which was mainly impacted by the political turmoil in North Africa. Coupled with the interim net dividend of €0.03 per share, the Directors recommended a further final net dividend of €0.03 per share. Further details of results available here.