The share index extended yesterday’s decline by a further 1.25 per cent to 4,414.326 points as the four largest companies by market capitalisation (BOV, HSBC, IHI and MIA) all suffered losses. Trading volumes eased considerably as just over €212,000 worth of shares changed hands.
The equity of Bank of Valletta retreated to the €2.35 level (-1.2 per cent) across 12,300 shares. Tomorrow is the last day for investors to gain entitlement to the one for 12 bonus share issue.
Also in the banking sector, HSBC and FIMBank also closed the day in negative territory. In fact, HSBC lost 1.1 per cent to the €1.73,1 level across 43,659 shares whilst a single deal of 17,000 shares dragged the equity of FIMBank down 4.5 per cent to the 63cUS level.
Last week, HSBC confirmed that, as part of its planned programme aimed at improving its productivity and cost effectiveness, it intends to accept 130 applications for early retirement from its staff members. The estimated cost of this one-off expenditure (to be provided for in the financial year ended December 31) is approximately €14.7 million. This will enable the bank to reduce annual operating costs by approximately €4.4 million as from 2016.
Malta International Airport and International Hotel Investments also closed lower. The share price of the airport operator failed to maintain its all-time high of €4.30 and retreated by 2.1 per cent to the €4.21 level on weak volumes of 2,140 shares. The equity of IHI shed four per cent to the 72c level on activity of 29,000 shares.
The other negative performer of the day was MaltaPost as the equity shed 3.6 per cent to the €1.87 level across 12,000 shares. The company will be holding its annual general meeting this Friday.
The board of directors will be recommending the payment of a final net dividend of 4c per share. Shareholders had the option to receive the dividend either in cash or by the issue of new shares at an attribution price of €1.80 per share.
The postal operator’s parent company, Lombard Bank, regained its multi-year high of €2.48,5 (+1.4 per cent) across 1,499 shares.
Grand Harbour Marina and GO also traded positively on shallow volumes. The equity of the marina operator gained three per cent to the €1.03 level on just 2,000 shares whilst GO advanced 0.3 per cent to the €3.08 level across 5,320 shares.
The other positive performer of the day was Malta Properties Company (29,003 shares) as the equity closed at the 56c level, representing a 1.8 per cent increase over the previous closing price.
Meanwhile, three other active equities closed unchanged. Loqus Holdings, Midi and 6PM Holdings closed at 12c (1,000 shares), 35c (10,300 shares) and 70p (4,154 shares) respectively.
On the bond market, the RF MGS Index slipped by 0.26 per cent to 1,134.018 points as the yield of the benchmark 10-year German Bund advanced from 0.54 per cent to 0.57 per cent.
In the absence of any major macro-economic data, euro sovereign yields reflected the recovery across equity markets, following one of the worst ever start to a new year.
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