MaltaPost shares slump on profit warning
The share price of MaltaPost plc slumped 6.1% during this morning's session to a new 28-month low of 77c following a profit warning issued earlier on today.
In the interim statement, the directors explained that the changes in the tariffs on cross-border mail imposed by the Universal Postal Union (UPU) with effect from January 1, continued to have an adverse impact on the company's financials.
As such, the directors noted that the downward trend in profitability reported for the six months ended March 31 will also be reflected in the second six months of the company's financial year ending September 30.
Furthermore, the board of directors believes this trend will continue and accelerate in future until the regulatory framework within which the company operates is adequately revised.
MaltaPost noted that it continued to work closely with the Malta Communications Authority to ensure the adoption of a fair and regulatory approach to its public tariffs. It remarked that the increases in costs from the change in tariffs on cross-border mail must be balanced by realistic tariffs.
Elsewhere, Bank of Valletta plc also closed in negative territory as the equity slid 1.9% lower to the €2.10 level on low volumes of 1,895 shares. International Hotel Investments plc's equity also traded lower with a minimal decline to 84c8 on a single deal of 1,000 shares.
Meanwhile, Go plc regained the €1.02 level across three trades totalling 8,500 shares to end the week unchanged.
The recently issued shares of Malita Investments plc traded for the first time today with 5,000 shares changing hands at the 52c level representing a four per cent rise over the IPO price.
HSBC Bank Malta plc failed to recover this week's earlier losses as the bank's equity closed this morning's session unchanged at the €2.64,9 level.
On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 995.027 points as eurozone yields eased back to the 1.55% level.
The local MGS benchmark slid 0.2% this week reflecting the rise in benchmark 10-year German bund yields from last Friday's level of 1.375% to 1.55% as markets await details of further measures to support the ailing countries in the eurozone following reassuring comments by ECB President Mario Draghi and German Chancellor Angela Merkel.