The MSE Equity Total Return Index extended the previous week’s decline of 0.126 per cent having slipped by 0.446 per cent.

Turnover was 4.1 per cent lower than the previous week having amounted to €2.7 million. Activity was spread across 18 equities of which 12 advanced and three fell.

Strong gains were registered in Malita plc, MIDI plc, Plaza plc, Lombard Bank plc, Mapfre Middlesea plc, PG plc and Malta International Airport plc, but the price adjustment of Bank of Valletta plc, whose shares turned X-rights, pulled the index lower.

Last Friday, Bank of Valletta plc (BOV) published the Group interim results for the 12-month period ended September 30, reporting a pre-tax profit of €143.9 million for the period. This compares to a pre-tax profit of €145.9 million for the corresponding period last year.

The latter result included a one-time windfall gain of €27.5 million, resulting in an adjusted comparable profit last year of €118.4 million. Earnings per share increased to €0.233 from €0.226 in 2016.

Core profit (profit stated before fair value movements and the contribution of associated companies) amounts to €124.0 million, an increase of almost 23 per cent over the €101.2 million registered for the corresponding period in 2016.

Two significant items which have also strongly contributed to the group’s overall profitability were the reversal of impairment charges against non-performing loans (2017: +€7.5 million, 2016: – €23.1 million), and a strong recovery from its associated companies in the life and non-life insurnace businesses (2017: +€14.5 million, 2016: +€3.7 million).

Group total income rose marginally over last year, to reach €256.4 million. Net interest margin, which yielded €147 million (2016: €149 million) accounted for 57 per cent of this total income, compared to 59% last year.

The bank reported that during the period under review, deposits rose by €897 million, and have now exceeded €10 billion.

Concurrently, the demand for loans, although showing a noticeable increase over recent years, fell far short of the growth in deposits.

Lending increased by €190 million, with growth being registered in both business finance and personal finance sectors.

The surplus of incoming deposits was channelled into short term funds, which, in the current environment, are yielding low-to-negative returns. This combination of solid deposit inflow and a more subdued growth in credit has resulted in a historically low loans-to-deposits ratio of 43 per cent.

BOV shares witnessed a turnover of €1.25 million spread over 136 trades, closing €0.10 or 4.8 per cent lower at €2.00, having traded at a low of €1.83 but recovering by 8.1 per cent during last Friday’s sessions.

Last Wednesday, the equity traded ex-rights and thus investors who opted to purchase shares of the bank will now not be entitled to participate in the imminent rights issue which is awaiting approved from the competent authority.

The price movement followed last Monday’s announcement that the board of directors had authorised the submission of an application for authorisation for admissibility to listing, to the Listing Authority requesting the approval of a prospectus in relation to the Rights Issue.

The Rights Issue will be offered to existing shareholders appearing on the Issuers’ register of members as at close of business last Thursday. Shareholders will be entitled to one ordinary share for every four ordinary shares held.

The offer price was set at €1.43 per new ordinary share, consists of a discount of 27.47 per cent to the theoretical ex-rights price (TERP).

The Rights Issue, if fully taken up, will result in the issued share capital of the Issuer increasing by 25 per cent. Existing shareholders who accept their proportionate entitlement of rights in full, will suffer no dilution to their interests in the Issuer. However, those shareholders who do not take up any of their rights to subscribe for the new shares will, if the Rights Issue is fully taken up, suffer an immediate dilution of 20 per cent in their interests in the Bank

HSBC Bank Malta plc shares increased by a marginal 0.2 per cent across 10 deals of 16,796 shares, closing at €1.859. Lombard Bank Malta plc shares rose by 4.6 per cent as 10,574 shares changed ownership across six transactions, closing €0.10 higher at a seven week high of €2.30.

MaltaPost plc shares registered an increase for the third week having climbed by 1 per cent. The local postal operator’s shares were active on four deals of 5,775 shares, to close at €2.05, a 20-week high.

Malta International Airport plc shares oscillated between an all-time high of €4.80 and a weekly low of €4.68, to ultimately close 2.4  per cent higher at €4.79. The local airport operator’s shares have registered an increase for nine weeks and were active on 34 trades of 91,960 shares last week.

Malita Investments plc shares were the best performers having appreciated by 6.7 per cent across three deals of 20,000 shares, closing €0.05 higher at an eight-month high of €0.80. MIDI plc shares followed suit having advanced by 5.6 per cent as 49,800 shares changed hands over four transactions, to close at €0.319.

Plaza Centres plc shares rose by €0.059 or 5.6 per cent across five trades of 71,345 shares, closing at €1.109. Tigne Mall plc shares fully recovered the previous week’s loss of 0.5 per cent as three deals of 20,000 shares were executed to close at €0.96.

Malta Properties Company plc shares partially erased the previous decline of 4.9 per cent having increased by 0.6 per cent.

Mapfre Middlesea plc registered a 3.6 per cent increase in its share price as Simonds Farsons Cisk plc shares climbed by €0.18 or 1.9 per cent, closing at €9.65.

In the I.T. sector, RS2 Software plc shares stumbled by €0.079 or 4.7 per cent per cent across 20 transactions of 57,097 shares, to close at €1.60 – a four-month low.

International Hotel Investments plc shares slipped by 0.7 per cent as 13 deals of 731,782 shares were struck, closing at €0.61.

PG plc recorded a 2.7 per cent recovery in its share price having closed €0.04 higher at €1.50. The equity was active on seven deals of 44,175 shares.

GO plc shares closed unchanged at €3.59. The telecommunications provider’s shares were active on 10 trades of 16,193 shares.

Medserv plc registered no change in its share price of €1.26 as 27 transactions of 87,843 shares were struck.

Santumas Shareholdings plc shares traded flat at €2.25 on one deal of 1,830 shares.

In the corporate bond market, turnover totalled €3.6 million. In the sovereign debt market, turnover amounted to €9.4 million spread across 23 issues.

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