Daily Market Highlights (28.10.11)

  • Local equity market closed off today’s trading session in positive territory as the MSE Share Index edged 0.2% higher to 3,092.076 points. Today’s upturn reflects the increases in the share prices of HSBC, GO, MIA and FIMBank which mainly offset the drops in BOV and IHI. Crimsonwing and Island Hotels Group also in negative territory whilst MIDI and RS2 Software closed unchanged. For the second consecutive week however, the MSE Share Index still ended the week in negative territory with a further 0.4% drop mainly due to the declines in the large banks’ equities (BOV and HSBC) and GO which mainly offset the weekly increases in IHI, MIA and FIMBank. Download a copy of today’s Equity Market Summary.
  • Continued positive reaction to yesterday’s deal struck amongst EU leaders concerning the prevailing sovereign debt crisis. Increased confidence in the market was evidenced by rising Eurozone yields which reached over the 2.2% level resulting in a further drop in the Rizzo Farrugia MGS Index of 0.3% to 981.505 points, down 0.4% on the week.
  • Shortly after the close of today’s trading session, BOV published its preliminary full-year results for the financial year ended 30 September 2011. The financial statements reveal a 34.3% drop in profitability to €42.1 million. The Directors are recommending a final gross dividend of €0.08 per share to shareholders as at close of trading on 11 November 2011. Adding the gross interim dividend of €0.0625 per share paid earlier this year, the total dividend of €0.1425 represents a 27.2% cut from the previous full-year dividend of €0.196 per share. The Directors also recommended a 1 for 8 bonus issue to shareholders as at close of trading on 9 January 2012. This bonus issue will be funded through the capitalisation of €30 million of reserves.
  • Meanwhile HSBC recovered by 0.34% to €2.64 across three trades totalling 10,852 shares. Other bids outstanding at €2.63 whilst lowest offers still pitched at the last traded price. During the second week of November, the Bank generally publishes its Interim Statement covering the third quarter of 2011.
  • After last week’s 2.4% rise, further demand for Malta International Airport plc shares lifted the equity 2.9% higher this morning to a new 4-month high of €1.75 on total volumes of 27,000 shares. The equity now stands 5.4% higher year-to-date mainly due to last week’s announcement which revealed a revised uplift in the passenger growth forecast for the second time this year after the arrival of the 3 millionth passenger. The airport operator now expects passenger movements to rise by at least 4.5% during 2011.
  • Significant volumes of 425,000 FIMBank plc shares traded during this morning’s trading session with the share price rising from its multi-year low of US$0.67 to the US$0.72 level. Remaining offers now stand at the US$0.74 level but no bids are left in sight.
  • 11,500 IHI shares dragged the share price this morning 0.5% lower to €0.815 level. Other offers still in the market at the last traded price whilst best bids placed at the €0.78 level. In the coming weeks, IHI are expected to publish its Interim Statement with an update to the market on the performance of the Group’s various hotels since 30 June 2011. Particular attention will be given to the Corinthia Hotel in Tripoli, Libya following last week’s dramatic but positive developments.
  • GO’s equity recovered some of the recent losses as it rose by 2.8% to €1.029 over a single trade of 500 shares. On Wednesday, Forthnet announced that its Extraordinary General Meeting has been postponed to 15 December. The Forthnet Directors, however, failed to disclose the reason for the postponement of the EGM which was set to ask shareholders to approve a number of changes in the share capital and a €30 million rights issue.
  • On the IT front, Crimsonwing plunged 11.2% to close at a 2-year low of €0.30 over 6,492 shares whilst RS2 Software traded unchanged at €0.58 over 2,000 shares.
  • A single 1,000 share trade pulled IHG’s equity 5% down to €0.85 whilst MIDI closed unchanged at €0.39 – also over one transaction of 3,000 shares.