The MSE Share Index reversed some of yesterday’s decline as it edged 0.11 per cent higher to 4,546.058 points. Trading activity remained healthy again today as nearly €0.4 million worth of shares changes hands.
Bank of Valletta plc closed at its highest level since mid-January 2008 of €2.32 (+0.6 per cent) on reduced volumes totalling 24,049 shares. Last Friday, BOV published its results for the financial year ended 30 September 2016. The Group reported a 23.7 per cent jump in pre-tax profits to €145.9 million.
The main driver behind this growth was the one-off gain of €27.5 million registered from the disposal of the shareholding in VISA Europe. Excluding this one-off gain, the Group’s pre-tax profit was relatively unchanged at €118.4 million. The Directors recommended a final gross dividend of €0.0852 per share (net: €0.0554) to be paid to all shareholders as at the close of trading on Monday 14 November subject to shareholder approval during the upcoming Annual General Meeting on Friday 16 December. During the meeting, shareholders will also be asked to approve a 1 for 13 bonus issue.
RS2 Software plc extended yesterday’s gains by a further 1.3 per cent to the €1.529 level on volumes totalling 48,212 shares.
GO plc advanced by 0.1 per cent to the €3.219 level across 8,000 shares.
A single deal of just 432 shares pushed the equity of Mapfre Middlesea plc 1.4 per cent higher to the €2.04 level. Recently, the insurance specialist warned that it is expecting lower profits to be registered during the current financial year ending 31 December 2016.
Also in the retail banking sector, HSBC Bank Malta plc retreated by a minimal 0.3 per cent to the €1.905 level across 47,555 shares.
The most actively traded equity was Medserv plc as 75,400 shares (having a market value of €0.11 million) pulled the equity 0.1 per cent lower to the €1.498 level.
In the property segment, Malta Properties Company plc and Plaza Centres plc eased by 1.6 per cent and 0.9 per cent to €0.60 and €1.11 respectively on shallow volumes.
Malta International Airport plc moved back to the €4.10 level (-1.0 per cent) on volumes totalling 6,465 shares.
Meanwhile, GlobalCapital plc and Grand Harbour Marina plc maintained the €0.45 and €0.869 levels respectively on light volumes.
On the bond market, yesterday’s uptick in the RF MGS Index was short-lived as it went down by 0.15 per cent today to a two-week low of 1,172.523 points. The opening indicative bid prices of the Central Bank of Malta for all fixed-coupon Malta Government Stocks were adjusted downwards today, reflecting the continuing recovery in euro zone sovereign yields (bond prices went down).
In fact, the 10-year benchmark German bund advanced to 0.188 per cent from 0.169 per cent yesterday. Bond markets are now awaiting the outcome of the US Federal Reserve’s monetary policy meeting due to be held between today and tomorrow. Many financial analysts are expecting the Fed to tighten its interest rates in December – a move that could have a ripple effect on financial markets across the world.
Meanwhile, local investors await news from the Treasury regarding the refunds due from the recent Malta Government Stock issues and the commencement of trading.
This article was provided by Rizzo Farrugia Investment Consultants.