Stock exchange: BOV and HSBC move in opposite directions

Today's trading session on the Malta Stock Exchange was characterised by weak volumes and the movement in opposite directions of the share prices of the two large banks. While the share price of Bank of Valletta plc advanced by 1.2% to regain the €3.30 level, HSBC Bank Malta plc closed in negative territory for the second successive session and lost 1.7% to €2.92.

HSBC's equity closed at a 1-month low and the recent publication of the 2010 half-year results showing a 21% increase in pre-tax profits to €42.2 million failed to provide adequate support to the equity. The decline in HSBC's share price forced the MSE Share Index to decrease by 0.2% and close below the 3,500-point level.

International Hotel Investments plc continued to trade at the €0.90 level as a further 16,341 shares traded. IHI will be convening an Extraordinary General Meeting on 27 August for shareholders to approve a 4% bonus share issue and a buy-back option by the company at the €1 level.

Meanwhile the market failed to respond to last week's interim results publication by Middlesea Insurance plc and RS2 Software plc. The Middlesea Group returned to a profitable position as it reported a half-year profit of €3.22 million. Bids remain unsatisfied at the last traded price of €1.03 with lowest offers stand at €1.149. RS2 also announced a higher level of profits with shares on offer in the market at the €0.48 level compared to a last traded price of €0.56.

On the local bond market, prices continued to rise as international yields dropped to fresh record lows. The indicative bid price of the 20-year Malta Government Stock added 20bp to 102.49% compared to a recent offer price at 100%. The new MGS issues are expected to commence trading in the coming days.

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