Bank of Valletta's share price touched an almost three-year high of €2.55 during this morning’s trading session before easing marginally lower to end the session 1.2 per cent higher at €2.53 on increased volumes of 66,940 shares.
Demand emerged during today’s session in anticipation of the full-year results this afternoon.
In fact, shortly after the close of the trading session BOV revealed a 5.4 per cent increase in net profits to just over €79 million mainly due to the positive fair value movements of €17.4 million and the significant increase in share of results from the insurance associates to €12.4 million.
These offset the 11.4 per cent decline in net interest income to €131 million and the 12.2 per cent increase in loan impairments to €25.6 million.
The directors recommended a final gross dividend of 13c per share (up 11.1 per cent over the previous year’s final dividend) and a one for 10 bonus issue.
Shareholders as at the close of trading on November 14 will be eligible for the dividend whilst the cut-off date for the bonus issue is January 14.
HSBC Bank Malta plc also moved higher with a 0.8 per cent increase to €2.65 across 8,250 shares.
Despite the increase in the share prices of the two large banks, the MSE Share Index slipped 1.5 per cent to 3,455.951 points mainly due to the 11.8 per cent plunge in the share price of International Hotel Investments plc back to the 75c level on volumes of 24,714 shares.
The equity of Malta International Airport plc reversed yesterday’s gains with an equivalent 1.5 per cent drop back to the €2.02 across three deals totalling 17,900 shares.
The share price of Lombard Bank Malta plc lost 3.4 per cent to €1.85 on low volumes of 8,100 shares.
Meanwhile, 6,500 GO plc shares traded unchanged at the €1.50 level and FIMBank plc held on to the US94c5 level across 10,100 shares.
On the bond market, the Rizzo Farrugia MGS Index edged up for the fourth consecutive session reaching a six-week high of 1,021.614 points as Eurozone yields slipped back to the 1.66 per cent level.
This morning’s drop in the benchmark Eurozone yields followed the publication of data showing that inflation across the Eurozone dropped to near four-year lows during the month of October and the unemployment rate in the region remained at a high level of 12.2 per cent for the second consecutive month (August and September).
As such, investors now expect the European Central Bank (ECB) to maintain or increase its stimulus to support the eurozone’s recovery.
Subscriptions for the new two Malta Government Stocks closed yesterday afternoon. Submissions in the form of tenders will be accepted until noon on Monday.
The statistics of this issue will be published on Monday afternoon following the deadline of submission of tender offers.
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