MSE Share Index up 4.1% in October

The MSE Share Index rose by 4.1 per cent in October (the highest monthly increase this year) to 3,264.182 points as all of the five largest equities by market capitalisation traded higher during the month under review.

Out of the five largest equities, Bank of Valletta plc is the best performer with a 9.9 per cent jump to €2.48,9 mainly following last Friday's full-year results publication which revealed a record pre-tax profit of €110.7 million.

The bank's shares are trading with the entitlement to the final gross dividend of 13c per share and to the one for nine bonus share issue.

Lower gains were registered in HSBC Bank Malta plc with a 1.1 per cent monthly increase to €2.76 ahead of the bank's interim directors' statement publication by mid-November.

The share price of International Hotel Investments plc also advanced by 5.6 per cent during October.

Demand for the equity was sustained following the recent comments by the group's hairman revealing that the sale of the London apartments should be completed in the next couple of months.

Similarly, GO plc's share price registered a 6.2 per cent jump to €1.00,9 in anticipation of the decision on whether to inject further funds into Forthnet which is seeking to raise fresh capital.

The decision has been postponed until Forthnet publishes the relevant Prospectus.

Earlier this week, certain international media reports revealed that WIND Hellas Telecommunications S.A. has tabled a bid for the telecoms division of Forthnet S.A.

The shares of Malta International Airport plc only edged 0.6 per cent higher to reach a new three-month high of €1.77.

The airport operator is expected to publish the October traffic results next week.

During the first nine months of 2012, MIA registered a 4.1 per cent rise in passenger numbers to just below 2.9 million passenger movements.

The airport operator is expected to achieve its third consecutive record of passenger movements.

Significant positive performances were also reported among the mid and small cap equities.

The outperformer of the month was Crimsonwing plc with a 34.6 per cent jump to 35c following the announcement of three new international contracts and the forecast of €2 million in pre-tax profits by the next financial year ending March 31, 2014.

The share price of Simonds Farsons Cisk plc also climbed by 9.1 per cent on the back of record results for the six months ended July 31. The Farsons Group reported a 45 per cent increase in profitability to €3.78 million on the back of a continued strong performance by its own brands, Cisk and Kinnie.

On the bond market, the Rizzo Farrugia MGS Index slid 0.1 per cent this month to 996.294 points mainly reflecting the downturn in Eurozone yields back below the 1.5 per cent level in the latter part of the month.

Initially, benchmark 10-year German Bund yields touched a four-week high of above 1.66 per cent on the back of the publication of some positive economic data.

However, this trend was short-lived as demand for safe haven assets increased following a generally disappointing earnings season as well as continued concerns over Spain, Italy and Greece.

This afternoon marks the closing of subscriptions for the three new Malta Government Stocks.

The new stocks and the respective prices are as follows: 3.75 per cent MGS 2017 (IV) FI at 105 per cent (YTM: 2.633 per cent); 4.3 per cent MGS 2022 (II) FI at 102.5 per cent (YTM: 3.982 per cent); 4.8 per cent MGS 2028 (I) at 100.75 per cent (YTM: 4.732 per cent).

The total aggregate amount on offer is of €100 million subject to an over-allotment option of up to a further €40 million.

The Treasury is expected to publish the statistics in respect of these new issues on Friday after the tendering process is completed.

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