Daily Market Highlights (31.10.11)

  • BOV’s sharp recovery leads MSE Share Index 2% higher to 3,154.605 points – the highest level since 15 September. HSBC, GO and RS2 Software also in positive territory whilst MIA, FIMBank and Plaza closed this morning’s session unchanged. Download a copy of today’s Equity Market Summary.
  • Eurozone bond yields decline on increased scepticism over the weekend in relation to last week’s deal struck amongst EU leaders and in reaction to the high rates that were paid by Italy for a fresh issue of 10-year bonds. As a result the Rizzo Farrugia MGS Index edged 0.2% higher to 983.252 points.
  • Despite reporting a 34.3% drop in profitability to €41.7 million, BOV’s share price jumped 6.2% this morning to regain the €2.55 (also the highest level since 15 September) across thirty four trades totalling almost 42,000 shares. Further offers unsatisfied at the closing price with highest outstanding bids pitched at the €2.52 level. The downturn in the Bank’s profits during the financial year ended 30 September 2011 was mainly due to a €24.9 million fair value markdown in its investment portfolio and a €15 million one-off loss arising from the buy back of shares from investors in the La Valette Multi-Manager Property Fund.  The Directors are recommending a final gross dividend of €0.08 per share to shareholders as at close of trading on 11 November 2011. 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. Further details available here.
  • HSBC share price also benefits from improved investor sentiment as the equity edged 1.9% higher to regain the €2.69 level across six trades totalling 6,500 shares. However, offers have already been placed minimally below the last closing price. During the second week of November, the Bank generally publishes its Interim Statement covering the third quarter of 2011.
  • GO recovered last week’s 2% drop as the equity regained the €1.05 level during this morning’s trading session on volumes of just over 5,000 shares. Last week, 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.
  • A single trade of 7,000 RS2 Software shares was transacted at the €0.59 level representing a 1.7% rise over the previous closing price. Best bids in the market at €0.58 with lowest offers at the €0.60 level.
  • Meanwhile MIA failed to hold to an intra-day high of €1.76 as its share price eased back to the €1.75 level, unchanged from last Friday. Almost 30,000 shares changed hands today with lowest offers pitched at €1.798.