Stock market: BOV up 4%

Bank of Valletta plc jumped 4% to €3.50 today on strong volumes as investors reacted positively to the company's strong interim results published last Friday.

At one point during trading the shares touched a high of €3.588. The Bank announced a substantial increase in pre-tax profits to €47.5 million during the first six months of this financial year compared to €6.3 million registered in the same period last year.

BOV improved its profitability despite the share of loss from its 31.08% shareholding in Middlesea Insurance plc which amounted to €3.6 million. This figure includes the impact on Middlesea's results of the write-off of its entire investment in Progress Assicurazioni SpA. Over 31,000 shares changed hands today. The interim gross dividend of €0.075 (net: €0.049) per share will be paid to shareholders as at close of trading on Friday 7 May 2010.

Simonds Farsons Cisk plc also rallies. The share price gained 4.1% to close at a new 11-month high of €1.80 on volumes of just under 6,000 shares.

The Farsons Group recently announced its January 2010 full-year results showing a substantial improvement in pre-tax profits to €3.1 million compared to the €0.9 million registered in the year ended 31 January 2009 despite a 2% decline in turnover. The company has also recently announced a new €15 million bond issue maturing between 2017 and 2020. Subject to regulatory approval, the bond proceeds will be used to finance the redemption of the existing €9.3 million 6.6% Bonds and partly finance the €14 million investment in a new brewhouse and water treatment facility.

The positive sentiment towards BOV and Farsons affected other equities. HSBC Bank Malta plc gained 0.4% to €3.062 and International Hotel Investments plc advanced 3.5% to €0.83. These positive performances offset the declines in GO (-2.7%) and Crimsonwing (-2.2%). The MSE Share Index ended the day up 1.5% at 3,556 points.

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