Following the drops suffered in the previous two trading sessions, the MSE Equity Price Index rebounded strongly as it added 0.69% to 4,697.552 points. A total of €1.14 million worth of shares traded on broad activity comprising fourteen shares. However, just over half of today’s activity took place in BOV.
Bank of Valletta plc slipped 2% to the €2.05 level on robust volumes totalling 291,578 shares. Yesterday, the bank announced that its Board of Directors has authorised the submission of an application to the Listing Authority requesting the approval of a prospectus in relation to a Rights Issue of approximately €150 million.
The Rights Issue will be offered to existing shareholders as at close of trading today. The proceeds from the Rights Issue will be principally earmarked for the further strengthening of BOV’s common equity tier 1 (“CET1”) capital. On Thursday October 26, BOV is also expected to publish a second set of interim financial statements covering the 12-month period from October 1, 2016 to September 30, 2017.
Also in the retail banking sector, Lombard Bank Malta plc surged by 4.1% to the €2.30 level across 9,624 shares and HSBC Bank Malta plc recaptured the €1.90 level (+2.6%) across 10,443 shares.
Among the large companies, MIA, IHI and GO all trended higher. Malta International Airport plc regained its 2017 high of €4.75 (+1.5%) on 10 deals totalling 13,730 shares.
International Hotel Investments plc advanced 0.2% to the €0.615 level on encouraging volumes totalling 310,124 shares and GO plc edged 0.1% higher to the €3.595 level across 11,319 shares.
Four property-related companies registered gains today. MIDI plc (43,000 shares) and Plaza Centres plc (15,000 shares) rallied by 5.6% and 5% to €0.319 and €1.103 respectively.
Three deals totalling 10,226 shares pushed the equity of Malta Properties Company plc 4% higher to the €0.524 level and Tigne’ Mall plc gained 0.5% back to the €0.96 level across 20,000 shares.
Positive sentiment was also evident in Mapfre Middlesea plc, MaltaPost plc and PG plc. The insurance specialist gained 3.6% to the €1.927 level across 10,000 shares and the postal operator added 1% to the €2.05 level on four deals totalling 5,775 shares.
PG plc rebounded by 2.7% to the €1.499 level across 15,540 shares whilst Medserv plc finished the day unchanged at the €1.26 level after recovering from its 2017 low of €1.19 on volumes totalling 76,643 shares.
The RF MGS Index trended higher for the first time in four days as it rebounded by a minimal 0.03% to 1,121.228 points.
Eurozone sovereign yields were mostly higher again today, largely reflecting the most recent developments in the US whereby bond markets are now expecting President Donald Trump to move ahead with his pledged tax reforms and also possibly nominate a new chairperson of the Federal Reserve who advocates more aggressive monetary policy tightening.
On the other hand, Spanish government bond yields continued to lose ground as the unstable political situation in the fourth largest economy within the single currency area remained concerning.
On the economic front, preliminary results of surveys gauging the level of confidence among purchasing managers in the manufacturing and services sectors in France were positive while these were disappointing in Germany and in the whole of the eur zone economy.
Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results.