The share index registered another negative performance (the sixth in succession) with a minimal decline of 0.04 per cent to a fresh two-week low of 4,417.276 points.
The three retail banking equities (BOV, HSBC and Lombard) finished today’s session lower extending yesterday’s losses while MIA and RS2 closed at new all-time highs.
The share price of Bank of Valletta dropped for the seventh successive session (including the adjustment after the equity turned ex-dividend on Monday) as the bank’s equity eased by a further 0.7 per cent during today’s trading session to close at the €2.29,9 level across 51,054 shares. BOV’s share price hit an intra-day low of €2.26.
The equity of HSBC also featured among today’s negative performers with another 1.1 per cent drop to the €1.81 level albeit on a single deal of just 4,500 shares.
Shortly after the close of trading, HSBC issued its interim directors’ statement covering the period since June 30.
The directors reported that during the period under review, despite generating higher revenues on the back of higher net interest and fee income, HSBC registered a modest decline in profit before tax compared to the same period in 2014.
This decline was primarily attributable to higher costs (namely increases in compliance and regulatory costs and the impact of currency changes on the cost of HSBC group services) and a lower contribution from the life insurance business. Overall, HSBC confirmed that the group liquidity and capital positions remain strong.
Yet, the worst performer of the day was Lombard Bank as the equity retreated by 1.8 per cent to the €2.21 level across 10,861 shares.
This afternoon, the bank issued its interim directors’ statement covering the period since June 30. The directors explained that the bank continued to experience pressure on its after-tax profits during the first three quarters of 2015 as, despite maintaining a healthy core business, impairment allowances and costs increased.
Lombard remained on track to meet its full year performance objectives, supported by a prudent risk profile and a solid financial position. Meanwhile, the bank’s subsidiary, MaltaPost, reported an improved performance in line with expectations. The equity of the postal operator today traded unchanged at its all-time high of €1.99 across shallow volumes.
Medserv edged marginally lower (0.4 per cent) to the €2.14 level across 19,030 shares. Yesterday, the company revised upwards the earlier projections for the second-half of the year made in its interim report dated August 27 as the results for the third quarter of this year exceeded budgets on the back of the high levels of activity at the Malta base.
Moreover, Medserv’s Libyan branch continued to provide essential administration and support services to the offshore Libyan activities whilst the Cypriot’s base outlook improved following the recent discovery of a mega gas field offshore Egypt by the Italian international oil and gas company Eni Spa.
The group is seeking to develop further its engineering services arm through the acquisition of the Mets Group. In this respect, Medserv will be holding an extraordinary general meeting on December 3 to seek the required shareholders’ approval for the company to pursue this acquisition. Medserv is also pursuing other business opportunities, namely in Egypt and Trinidad.
The equity of FIMBank jumped 6.5 per cent to the 49c5US level across 49,382 shares.
Malta International Airport and RS2 Software closed at new all-time highs of €4.03 (up 0.8 per cent on just 1,750 shares) and €2.94 (1.2 per cent above yesterday’s closing price on 13,227 shares).
Meanwhile, five equities traded unchanged. In the property sector, MIDI and Malita Investments closed at the 32c (18,500 shares) and 93c (5,000 shares) levels respectively.
6PM Holdings and International Hotel Investments also closed unchanged at the 65p and 84c9 levels respectively across insignificant volumes.
Yesterday, 6PM issued its interim directors’ statement in which it revealed that the group continued to experience growth in revenues and profits, in line with expectations. This positive trend was also made possible through the recently acquired Blithe Computer Systems Limited.
On the bond market, the RF MGS Index advanced to a three-week high of 1,144.673 points (+0.31 per cent) as the 10-year German bund yield continued to edge lower from yesterday’s 0.51 per cent level to 0.49 per cent today.
The prospect of an imminent US rate hike failed to stir investor confidence that the European Central Bank is just weeks away from announcing further stimulus to its quantitative easing programme to fend off threats to Europe's slagging growth and inflation outlook.
Last week, Bank of Valletta published a prospectus dated October 16 and a supplement dated November 9 in connection with the recently announced €150 million subordinated debt issuance programme.
BOV also published the final terms confirming the issuance of the first tranche of €75 million 3.5 per cent subordinated notes maturing in 2030.
Tranche 1 is split into Series 1 (minimum €25,000 per application) and Series 2 (minimum €5,000 per application). €40 million has been reserved for preferred applicants (shareholders, directors and employees) who must submit all information by November 30. Other investors must apply by December 2.
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