The share index extended yesterday’s gains by a further 0.19 per cent to close at 4,471.452 points as the positive performances of five equities marginally outweighed the declines of two of the largest companies by market capitalisation – HSBC and GO.
Trading volumes surged with almost €678,000 worth of shares changing hands.
The top performer of the day was FIMBank plcas the equity advanced by a further seven per cent to close at the 68c5US level – the highest since early July 2014 – across 51,692 shares.
Also in the banking sector, both Bank of Valletta and Lombard Bank registered gains. The equity of BOV advanced by 0.9 per cent to the €2.32 level across heightened trading volumes totalling 77,048 shares.
The bank will be holding its next annual general meeting on 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.
Relatively high trading volumes were also registered in Lombard Bank as the equity closed at a new multi-year high of €2.38 (+1.3 per cent) across 54,338 shares.
Following yesterday’s gain of 10 per cente, the recently listed equity of Malta Properties Company advanced by a further 3.6 per cent to close at the 57c level across reduced trading volumes totalling 41,435 shares.
The other positive performer of the day was Medserv as the equity closed 0.5 per cent higher at the €2.12 level across 5,000 shares. This morning Medserv held its extraordinary general meeting during which all resolutions will be approved, namely the acquisition of the METS Group, an increase in the company’s authorised share capital and the authority given to the board of directors to issue and allot equity securities and to withdraw/restrict shareholders’ preemption rights.
The payment of the net interim dividend of 8c per share and the allotment of four new shares for every five shares held is now expected to take place by next December 9.
On the other hand, both HSBC and GO closed the day in negative territory. HSBC retreated back to the €1.75 level (-2.2 per cent) across 10,220 shares. Recently the bank announced that it will be launching a voluntary early retirement scheme.
The equity of GO continued to lose momentum with a further drop of 0.5 per cent to close at the €2.95 level across relatively high volumes totalling 48,500 shares.
Meanwhile, the equities of Malta International Airport and RS2 Software maintained their previous levels close to their respective all-time highs of €4 (34,818 shares) and €3.09,9 (1,250 shares).
In anticipation of the much-awaited European Central Bank’s monetary policy meeting held this afternoon, the RF MGS Index edged marginally higher to 1,150.586 points as the yield of the benchmark 10-year German Bund was relatively unchanged at the 0.48 per cent level.
This afternoon, the European Central Bank announced a cut in the deposit rate to -0.3 per cent in an attempt to bolster the weak economic recovery across the eurozone.
Meanwhile, the main refinancing rate remained at 0.05 per cent while the quantitative easing programme was extended until March 2017 or beyond, if necessary. Despite the decrease in the deposit rate, the euro initially strengthened against the USD and yields advanced.
The subscription period for the €75 million 3.5 per cent Bank of Valletta subordinated notes 2030 from the general public and preferred applicants (namely BOV shareholders) will close tomorrow.
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