Higher volumes lift Lombard from multi-year low

Fresh demand entered the market today helping the equity of Lombard Bank Malta plc advance from its multi-year low of €1.80 to regain the €1.87 level (+3.9 per cent) on higher volumes totalling 33,828 shares.

Nonetheless, Lombard's equity still ranks amongst the worst performers of 2012 with a year-to-date drop of just over 30 per cent.

Lower volumes were evident today across the other active equities in the financial sector.

Bank of Valletta plc recouped from an intra-day low of €2.25 to close unchanged at the €2.27 level on volumes of 2,875 shares.

BOV ended the week 1.8 per cent higher. Meanwhile HSBC Bank Malta plc dropped by an equivalent percentage this week after easing by a further 0.2 per cent today to the €2.75 level across 9,548 shares.

Middlesea Insurance plc shares also edged €0.005 lower today to end the week 3.9 per cent lower at the 75c level.

Elsewhere in the local equity market, Malita Investments plc shares eased two per cent lower back to its July IPO price of 50c as it traded for the first time this week on a single deal of 1,000 shares.

MaltaPost plc was also active for the first time this week easing marginally lower to 70c9 on a single trade of 2,600 shares.

GO plc ended this morning's session unchanged at the 99c level across four trades totalling 6,000 shares to end this week 1.1 per cent higher – the fourth consecutive weekly gain.

The shares of Malta International Airport plc also preserved this week's earlier gains as a further 3,400 shares changed hands today at the €1.75 level representing a 0.9 per cent weekly increase.

Similarly, a single trade of 2,000 Simonds Farsons Cisk plc was executed at the €2.40 level representing a 2.1 per cent weekly rise.

On the bond market, the Rizzo Farrugia MGS Index edged minimally higher to close the week at 994.953 points, representing a weekly drop of 0.2 per cent.#

The benchmark MGS Index trended lower this week in line with the surge in eurozone yields to above the 1.6 per cent level as investors' risk appetite improved on the back of positive economic data from various corners across the world, a good start to the US third quarter earnings season as well as higher expectations of a bailout request by Spain and the granting of the next tranche of aid to Greece.

This morning the Treasury announced the issue of three new Malta Government Stocks for a total aggregate amount of €100 million subject to an over-allotment option of up to a further €40 million.

The three new stocks are: (i) 3.75 per cent MGS 2017 (IV) (Fungibility Issue); (ii) 4.3 per cent MGS 2022 (II) (Fungibility Issue) and (iii) 4.8 per cent MGS 2028 (I).

Offer prices will be determined on Thursday, ahead of the opening of subscriptions on October 29.

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