Stock exchange: High trading activity in the 20-year MGS

Following yesterday’s listing of the three new Malta Government Stocks, trading in the 20-year bond commenced today. A total of €1.27 million (nom) traded this morning in the 5.25% MGS 2030 FI across 23 trades. This stock was offered to the public at...

Following yesterday’s listing of the three new Malta Government Stocks, trading in the 20-year bond commenced today. A total of €1.27 million (nom) traded this morning in the 5.25% MGS 2030 FI across 23 trades. This stock was offered to the public at 100% (par) between 2 and 4 August. The price of this MGS closed 330 basis points higher at 103.30% after it touched an intra-trade high of 103.51%.

Meanwhile no trading took place in the short-term 3.75% MGS 2015 (VI) FIB but this morning’s indicative bid price by the Central Bank of Malta of 103.91% represented an increase of 41 basis points from the recent offer price.

On the corporate bond market the EUR tranche of the 7.15% Mediterranean Investments Holding plc bond maintained the 103.75% level on 5 trades totalling €75,400 (nom).

On the equity market, the share prices of Bank of Valletta plc and International Hotel Investments plc closed higher while HSBC Bank Malta plc declined to a 1-month low of €2.90. The other two active equities, Lombard Bank Malta plc and Middlesea Insurance plc, closed unchanged at €2.80 and €1.03 respectively.

After two negative sessions, BOV’s share price recovered by 0.9% to close at the €3.25 level on volumes totaling 8,878 shares. BOV is currently facing judicial claims by various investors who had invested in a property fund managed by BOV’s subsidiary Valletta Fund Management Ltd. In a counter protest filed in court today Bank of Valletta and its subsidiaries Valletta Fund Management Ltd and Valletta Fund Services Ltd said that they were not to blame for a deterioration in the value of the property fund. See further details here.

International Hotel Investments plc regained the €0.90 level. A total of 22,565 shares traded with further shares on offer at this level. IHI will be convening an Extraordinary General Meeting next Friday 27 August for shareholders to approve a 4% bonus share issue and a buy-back option by the company at the €1 level.

Middlesea’s share price maintained the €1.03 level after opening today’s session at €1.05. A total of 15,000 shares were exchanged today with unsatisfied bids at €1.03 and lowest offers at €1.10.

www.rizzofarrugia.com

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