Daily Market Highlights (31.08.11)

  • Local equity market remains under pressure as the MSE Share Index closes in negative territory for the third consecutive session with another 0.3% drop to 3,070.104 points. This drop was mainly due to the declines in HSBC, GO, MIDI and Lombard which offset the 0.4% rise in BOV. Download a copy of today’s Equity Market Summary. During the month of August the local equity benchmark shed a further 4.8% to 3,070.104 points mainly due to the losses sustained in the share prices of Middlesea Insurance, IHI and GO.
  • On the bond market, the Rizzo Farrugia MGS Index edged 0.2% higher to close at 990.038 points as the benchmark Eurozone yields eased towards a level of 2.16%. During the month of August the local MGS benchmark index rose by 0.9%. Trading activity in the MGS market surged to a monthly record of €92.5 million (nominal).
  • The worst performer of the day was GO which tumbled 4.4% to €1.21 following the publication of the 2011 interim results of Forthnet which showed a significantly higher loss of almost €60 million following a €38.2 million impairment on the goodwill of the pay-TV business. 13,650 GO shares were exchanged today. This afternoon GO revealed a loss attributable to shareholders of €17.8 million as the €12.4 million operating profit generated from local operations before non-recurring items (+9%) was completely wiped out by a further €22.2 million share of loss from its investment in Forthnet.
  • MIDI’s share price slipped 2.3% lower to the €0.42 level despite reporting an improvement in profitability during the first six months of 2011 to €1.79 million. The improved financial performance was due to the €13.5 million increase in revenue to €22.6 million mainly arising from the delivery of 23 apartments to owners in the block referred to as T10. Further details on results available here.
  • In the banking sector, BOV edged 0.4% higher to €2.51 across fourteen trades totalling almost 41,000 shares with other bids unsatisfied at the closing price. Meanwhile HSBC shed 0.4% to €2.65 on volumes of 3,500 shares. Similarly, Lombard Bank’s equity eased by 0.8% to €2.68 on volumes of just 500 shares.
  • Yesterday evening, GHM published its 2011 half-year results which, for the first time, also included the performance of the Turkish Marina, IC Cesme, in which GHM acquired a 45% shareholding. GHM reported a pre-tax loss of €346,053 compared to the pre-tax loss of €463,157 in the previous comparable six months despite a significant increase in revenue to €2.1 million during the period under review. Further details available here. Results failed to generate any trades as the equity remained inactive with no bids in sight and lowest offers pitched below the last traded price of €1.97.
  • Following yesterday’s initial positive reaction, RS2 shares failed to register any trades during this morning’s session. The IT company revealed a substantial increase in pre-tax profits to €1.6 million during the first six months of 2011. This was mainly due to the 67% rise in revenue to €4.7 million (the highest 6-month revenue figure since the first six months of 2008) on the back of increased licence sales which have already exceeded the Directors’ expectations for the whole of 2011. Further details available here.