Daily Market Highlights (30.05.11)

  • Third consecutive session of declines in the local equity market mainly due to further selling pressure across BOV shares. MSE Share Index down another 1% to 3,346.882 points following declines in the share prices of BOV and MIA. The only other two active equities, namely IHI and GO, closed unchanged. Download a copy of today’s Equity Market Summary.
  • Meanwhile the Rizzo Farrugia MGS Index moved another 0.1% higher to a new six-week high of 0.1% to 978.196 points as the benchmark Eurozone yields this morning opened at the 2.99% level. The price of the 5.25% MGS 2030 rose to 102% compared to the recent price in the primary market of 100.75%. Trading in the two new Malta Government Stocks begins today with gains registered in both the 6-year bonds as well as the 19-year paper. Yields have recently been under pressure due to weaker economic growth prospects and the prevailing EU-wide sovereign debt crisis. Moreover, late last week the President of the European central Bank confirmed that an rise in interest rates is very unlikely in June.
  • Following last Friday’s 1.8% drop, BOV’s share price suffered a further 4% slump back to a new 46-week low of €2.64 across twenty seven trades totalling over 25,600 shares. Highest bids now placed at the €2.60 level. BOV’s share price has come under pressure following last Thursday’s announcement by the Bank that it will be offering to buy-back the shares of the La Valette Multi Manager Property Fund. BOV is offering €0.75 per share to all investors as at 18 August 2008. The price is composed of €0.50 per share for the value of the investors’ Main Pool shares and the Side-Pocket shares and a further €0.25 per share as compensation for the fund’s underperformance in comparison to its peers. Shareholders of the Property Fund have until the 30 June 2011 to accept the offer. The Bank reserves the right to revoke the offer if acceptances received amount to less than 70% of the outstanding shares. If all investors accept the offer, the Bank will incur a charge of €14.5 million in its income statement.
  • Meanwhile HSBC shares inactive for the third consecutive trading session with offers already placed minimally below the last closing price of €2.985 whilst best bids in the market at the €2.97 level.
  • MIA share price down 0.6% to €1.70 after touching an intra-day high of €1.729 across four trades totalling 6,800 shares. Bids already placed higher at €1.71 whilst lowest offers pitched at the €1.728 level.
  • GO recovers from an intra-day low of €1.36 to close unchanged at the €1.37 level. Other offers unsatisfied at the closing price. Last week, the Greek telecoms Group Forthnet published its first quarter results of 2011 yesterday afternoon. Forthnet revealed a 3.3% increase in revenue to €102.6 million with the adjusted EBITDA rising by 8.8% to €18.5 million which was mainly driven by the Group’s Telecom Business. This resulted in an EBITDA margin of 18%. The Forthnet Group explained that during the first quarter of 2011 it continued to increase its subscriber base and to add customers that bundle Telecom and PayTV services. The Forthnet Group confirmed that it is in advanced stages of discussions with its lending syndicates in a bid to refinance its maturing stock of debt for 2011 and 2012 and extend the repayment terms beyond 2013.
  • Plaza’s Interim Statement, published earlier this week, failed to generate any trades as the equity remained inactive with shares on offer at the last closing price of €1.70. The announcement revealed that since the start of 2011 the Company maintained a satisfactory level of performance in line with the Directors’ expectations. Moreover Plaza noted that the new wing, which was opened in March 2011, is already 85% occupied with negotiations for the remaining spaces underway. The overall occupancy rate is 92% which is expected to increase by the third quarter of this year.