Bank share prices soar on high volumes
The publication of a strong set of financial results by Bank of Valletta plc last Friday sent share prices of the three banks rallying at this morning’s session.
The strong gains in BOV, HSBC Bank Malta plc and Lombard Bank Malta plc lifted the MSE Share Index by 4.6 per cent to 3528.344 points – the largest one day increase for the Index this year.
With the trade range of BOV removed by the Malta Stock Exchange, the equity climbed 19.4 per cent to a fresh 2010 high of €4 at the opening of today’s trading session.
A total of 37,311 shares traded at this level.
However, the equity failed to hold on to this level on lack of further support and profit taking from some investors.
The share price dropped back to €3.70 mid-way during the session and maintained this level by the close of the day.
A total of 55,490 shares traded with the share price still closing the day with a gain of 10.5 per cent.
This sharp upturn materialised following the publication of the September 2010 full-year results last Friday.
BOV reported a 20.9 per cent increase in pre-tax profits to just under €99 million while the directors recommended a final gross dividend of €0.16 per share (giving a gross dividend yield of 6.4 per cent based on today’s closing price) and a one for five bonus issue.
The positive reaction to the BOV results immediately spilled over into the equities of the other two local banks. HSBC jumped 7.1 per cent to regain the €3 level across 21 trades amounting to 51,260 shares with Lombard recouping some of its recent losses as its share price climbed 10 per cent to €2.75 on volumes of just under 49,000 shares.
This morning, Lombard issued its interim directors’ statement explaining that the directors remained confident that the group would maintain its course towards the attainment of another positive set of financial results for the year ending December 31.
GO plc also published its interim directors’ statement noting that following the improved performance during the first half of 2010, the group also registered a positive performance during the third quarter of the year on the back of further growth in revenues as well as cost reductions.
The equity closed unchanged at the €1.87 level across five trades totalling 6,300 shares.
Middlesea Insurance plc and MaltaPost plc also closed the day unchanged at €1 and €0.91 respectively while International Hotel Investments plc edged 2.5 per cent lower to the €0.78 level on volumes of just over 25,000 shares.
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