Daily Market Highlights (31.05.11)

  • Local equity market closes in positive territory for the first time in four sessions as the recovery in BOV outweighs the declines registered in the smaller cap equities. MSE Share Index up 0.1% to 3,350.670 points representing a similar marginal rise during the month of May. Download a copy of today’s Equity Market Summary.
  • Meanwhile the Rizzo Farrugia MGS Index eased 0.2% lower to 976.458 points as benchmark Eurozone yields surpassed the 3% level. The local MGS  benchmark ended the month of May marginally higher reflecting the sharp downturn in Eurozone yields particularly in the latter part of the month on the back of reignited concerns on Europe’s sovereign debt crisis and the confirmation that an interest rate hike is not likely to materialise in June.
  • Following the 5.7% drop in BOV’s share price in the previous two session, BOV’s equity recovered by 2.3% today to regain the €2.70 level across fifteen trades totalling almost 23,700 shares. Further bids unsatisfied at the closing price whilst lowest offers now placed at the €2.73 level. Last Thursday the Bank announced 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 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 still no trading effected in HSBC shares with offers already placed minimally below the last closing price of €2.985 whilst best bids in the market at the €2.97 level.
  • FIMBank also in negative territory as its share price slumps by 5.9% to a new multi-year low of US$0.80 across high volumes of over 116,000 shares. Shareholders have until the end of June to submit their acceptance form with respect to the “share-for-share” exchange.
  • A small deal of 300 Middlesea Insurance plc shares was transacted at the €1.02 level representing a 0.9% drop from the previous close. Offers already placed lower at €1.019 whilst best bids placed at the €0.99 level. Market still awaiting details with respect to the mandatory offer to be launched by Mapfre Internacional in the event that the MFSA approves its acquisition of Munich Re’s 19.9% shareholding. BOV have already announced that they will not tender their shares.
  • Share price of Island Hotels Group Holdings plc also declines. Equity retreats by 5% to a fresh 6-month low of €0.85 on very low volumes of 400 shares. Island Hotels recently announced the acquisition of 50% of Buttigieg Holdings Ltd which in turn owns 100% of R.J.C. Caterers. Further details on the acquisition available here.
  • MIDI’s share price also slips 2.4% lower to a new all-time low of €0.41 across three trades totalling 2,100 shares. Tomorrow the Company is scheduled to hold its first Annual General Meeting since the IPO.
  • MaltaPost also drops 5.6% to the €1.02 level on volumes of just over 2,000 shares. Further bids unsatisfied at the last traded price whilst lowest offers now placed at the €1.084 level.