MSE share Index closes in positive territory for the first time in eight sessions. Index up 0.4% to 3,221.508 points brought about by recoveries in BOV and GO. Download a copy of today’s Equity Market Summary.
Eurozone yields drop back to the 2.65% as doubts over the timely conclusion of a deal to increase the United States debt ceiling mounts. In line with this drop in yields, the Central Bank of Malta raised it Malta Government Stock bid prices with the largest increase of 48 basis points recorded in the 5.25% MGS 2030 (I) which regained the 102.60% level – its highest price level in the past two weeks. Overall, the Rizzo Farrugia MGS Index also climbed 0.1% to 980.829 points thereby recovering most of the declines since 12 July when the MGS benchmark hit a 19-week high of 983.696 points.
BOV share price recovers most of yesterday’s declines caused by the release of the Interim Statement. Equity advances by 1.6% to €2.59 level across twenty one trades totalling 24,989 shares. In the Interim Statement, covering the three months ended 30 June, BOV revealed a slower demand for credit and a continued satisfactory growth in deposits. Moreover the Directors stated that although net interest income grew, commission and trading income dropped due to the prevailing political developments in North Africa and the Eurozone sovereign debt crisis. The latter also resulted in further fair value mark downs while loan impairments continue to reflect the current scenario of certain sectors of the economy. Overall, the profitability for the first nine months of the current financial year is slightly below that of the previous year before accounting for the one-off cost of €14.5 million relating to the buy-back offer of the La Valette Multi-Manager Property Fund shares. Further details available here. Meanwhile, BOV reported that the offering of €40 million in Notes carrying a coupon of 4.8% and maturing in 2018 closed early due to oversubscription.
HSBC remained inactive today with bids already placed higher than the last closing price of €2.80 and lowest offers at the €2.95 level. HSBC is set to publish its half-year results tomorrow.
GO also partially recovered from its recent declines as its share price moved 1.6% higher during this morning’s session to the €1.26 level. Over 4,300 shares changed hands today with best bids in the market at €1.22 whilst lowest offers now place at the €1.30 level. Earlier this week, the Greek telecommunications Group Forthnet revealed that it successfully managed to restructure €90 million of its outstanding debt through the issuance of new long-term debt by a syndicate of banks. Further details available here.
MIA unchanged at the €1.56 despite announcing an 11.4% increase in profitability to €3.96 million during the first six months of 2011. The improvement was mainly due to the 2.2% increase in revenue to €26.67 million on the back of a 12.7% rise in passenger movements during the same period. Further details on the results and a copy of the Interim Report may be obtained here.
Still no trades effected in Crimsonwing shares despite the publication of the Company’s full-year results last Tuesday. The annual accounts show a 16.5% increase in revenue to a record €14.3 million on the back of organic growth particularly in its e-commerce and Enterprise Resource Planning (ERP) businesses. Similarly, gross profit rose by 18.6% to €5.8 million and EBITDA grew by 30.1% to just under €0.75 million despite an 18.9% increase in administrative costs to €5.2 million which include one-time costs related to restructuring that took place in the Netherlands at Crimsonwing BV and VDA and the re-instatement of salaries to the Chairman and the Chief Executive Officer (CEO). However after accounting for depreciation, interest costs, tax and minority interest, the loss attributable to shareholders amounted to €109,135 compared to the loss of €19,217 in the previous financial year. Further details and copy of the Annual Report available here.