Daily Market Highlights (28.05.10)

  • Local equity market in negative territory for the fourth consecutive session as the MSE Share Index drops below the 3,500-point mark for the first time in almost a month. Negative reaction to the comments made by the Governor of the Central Bank of Malta persists, resulting in further declines in the two big banks’ equities and Middlesea Insurance during this morning’s session. Following today’s 0.5% drop, the Index closed the week 1.1% lower with three out of the four largest equities registering weekly declines. Download a copy of today’s Equity Market Summary.
  • Preferred applicants period with respect to the Simonds Farsons Cisk plc bond issue now closed. The General Public offering will open next Tuesday 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.
  • On Monday 31 May 2010, the General Public Offer of Eden Finance plc’s new €15 million 6.6% bond issue opens. The proceeds will be mainly used to finance the redemption of the outstanding 6.7% Bonds. Further details available here.
  • BOV’s share price continues to be adversely affected by the subdued investor sentiment following the call by the Governor of the Central Bank Malta for local banks to further strengthen their capital structure. Equity shed a further 1.5% this morning to close at the €3.25 level on increased volumes of over 24,200 shares. Further bids remaining unsatisfied at the close whilst lowest offers now pitched at the €3.299 level. Following today’s downturn BOV ranks as the worst performing equity this week with a 3.6% weekly drop. BOV today paid its gross interim dividend of €0.075 (net: €0.049) per share.
  • Selling pressure also in HSBC as its share price edges a further 0.3% lower to close at the €3.03 level. 14,500 shares exchanged today wit offers already placed minimally below the last closing price.
  • Middlesea Insurance’s shares affected by the downturn in HSBC and BOV. Equity sheds 2.8% to drop back to the €0.855 level also on increased volumes of 17,360 shares. Further bids outstanding at the close price whilst lowest offers now pitched at the €0.87 level.
  • Santumas Shareholdings plc reverses the declines registered earlier this week as it recovers from its 44-month low. Share price jumps 4.8% today to regain the €2.60 level on a miniscule trade of 200 shares. Best bids still in the market at the €2.48 level whilst other offers remaining unsatisfied at the closing price.
  • Last week, 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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