The equity of RS2 Software plc continued to advance to new record levels. The share price closed two per cent higher at the €2.55 level after failing to hold on to its fresh all-time high of €2.60 at the start of today’s session.
A total of 17,350 shares traded today with further buyers in the market at €2.55 and lowest offers at €2.59.
Yesterday, RS2 announced that it entered into a license agreement for its proprietary software BankWORKS with a global payment processing company for a total value of €12 million.
The agreement stipulates that the license granted is for a five-year term with an option to convert to a perpetual license in accordance with the terms.
Furthermore, RS2 entered into a services agreement with the licensee with an annual minimum spend by the licensee of €1.5 million for the first three years of the agreement (total value of €4.5 million).
RS2 explained that the amount of revenue recognised is dependent upon the terms of the agreement between RS2 and the licensee. RS2 also noted that this is one of the agreements with an existing client referred to in the company announcement dated November 14.
Despite RS2’s continued upturn, the MSE Share Index closed marginally lower at 3,387.176 points following the decline in the share price of Bank of Valletta plc.
BOV’s equity eased a further 0.5 per cent lower to €2.12 on continued low volumes of 12,060 shares.
Meanwhile all other active equities closed unchanged namely, HSBC Bank Malta plc (4,500 at €2.11), MIDI plc (1,000 shares at 24c) and Medserv plc (3,800 shares at €1.27).
Malta International Airport plc also held on to the €2.26 level as a further 6,170 shares changes hands at this level.
Yesterday afternoon, the company published its May traffic results revealing a 6.4 per cent increase in passenger movements when compared to the same month last year to a record of 402,289 passengers – the first time that passenger movements exceeded 400,000 during the month of May.
During the first five months of the year, MIA registered a 9.2 per cent increase in passenger movements to 1,435,312 (2013: 1,314,635).
On the bond market, the Rizzo Farrugia MGS Index declined marginally to 1,039.481 points as most of the medium-term Malta Government Stock prices declined while the longer-term bonds edged higher.
Eurozone yields were relatively unchanged this morning ahead of the European Central Bank monetary policy meeting scheduled for this afternoon.
As was widely expected, the ECB announced a reduction in the base interest rate from 0.25 per cent to 0.15 per cent and the deposit facility to -0.1 per cent in a bid to spur an economic recovery and head off deflation.
Effectively, the action taken today implies that banks will now have to pay to leave money at the ECB.
This is the first time that a major central bank adopted a negative rate.
Two new corporate bond issues were announced earlier this week.
Mediterranean Investments Holding plc (MIH) published a prospectus in connection with a new issue of €12 million six per cent bonds 2021.
MIH is offering a preferential allocation to holders of the 7.5 per cent MIH Bonds maturing on December 4.
Mariner Finance plc issued a formal notice in connection with the issue of €30 million 5.3 per cent bonds 2024 with an over-allotment option of a further €5 million.
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