The share index extended yesterday’s decline by a further 0.97 per cent to close at 4,429.905 points as the losses across four of the large capitalised companies (BOV, HSBC, IHI and GO) outweighed the gains in three other equities.
Moreover, the share price of Malta Properties Company continued to correct heavily after last week’s extraordinary performance. Although volumes across the equity market remained elevated at €462,000, this is the lowest level for the last six trading days.
The equity of the recently listed Malta Properties Company sank 23.1 per cent as it closed at the 50c level across 166,179 shares. Last Tuesday, the equity commenced trading on the Malta Share Exchange. Despite the significant correction over the past three days, the equity is still up by 50.9 per cent when compared to the value of 33c13 per share attributable to the dividend in-kind distributed by GO.
In the banking sector, both Bank of Valletta and HSBC performed negatively. BOV closed 0.8 per cent lower at the €2.29,1 level across 34,983 shares. The bank will be holding its next annual general meeting December 17, during which shareholders will be asked to approve a number of resolutions including a gross final dividend of 8c5 per share (payable on the following day) and a one for every 12 bonus share issue.
On the other hand, HSBC suffered a bigger decline as it edged 2.2 per cent lower to the €1.75 level across 37,976 shares. Last Thursday, the bank revealed that it approved a plan to launch a voluntary early retirement scheme for its employees.
The estimated cost of this one-off expense will depend on the number of applications received. Nonetheless, the directors expect this exercise to lead to reduced profitability in the current financial year but will support an increased level of profitability and efficiency in future years.
The other negative performers of the day were GO and International Hotel Investments as the equities closed the day 0.3 per cent and three per cent lower to the €2.99 and 82c1 levels respectively albeit on relatively shallow volumes.
Meanwhile, the equity of FIMBank continued to perform strongly (up 33.3 per cent in the last two weeks) as it advanced by 7.1 per cent to the 60cUS level – the highest since mid-October 2014 – across 281,300 shares.
Furthermore, both Malta International Airport and RS2 Software plcadvanced by 0.2 per cent to the €4.01 (on just 500 shares) and €3.10 (on 10,065 shares) levels respectively.
On the bond market, the RF MGS Index suffered its third consecutive decline (-0.14 per cent) to close at 1,148.047 points as better-than-expected eurozone unemployment data and an encouraging manufacturing reading pushed the 10-year German Bund yield up from 0.47 per cent yesterday to 0.52 per cent.
In the meantime, German unemployment last month hit another record low. Overall, it seems that eurozone bond markets are already pricing in a deposit rate cut by the European Central Bank and an increase in the size, scope and length of its bond-buying programme at the next monetary policy meeting to be held on Thursday.
Yesterday, Bank of Valletta issued an announcement advising that the closing date for any applications for the €75 million 3.5 per cent subordinated notes 2030 by preferred applicants has been extended from November 30 to December 4 (or earlier at the discretion of BOV). The application process for other investors opens tomorrow and also closes on Friday.
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