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  • The MSE Share Index moved lower for the third consecutive day as it declined by a further 0.62% to a near six-week low of 4,442.867 points reflecting the declines in the share prices of BOV and RS2. Week-on-week, the local equity Index lost 1.37% – the worst weekly performance since mid-July 2016. Download a copy of today’s Equity Market Summary.
  • On the bond market, the Rizzo Farrugia MGS Index moved lower for the third consecutive day as it declined by a further 0.32% to 1,141.469 points. International financial news agencies reported comments made today by European Central Bank (ECB) rate setter Mr Yannis Stournaras who expressed that the central bank is still far from reaching its inflation target and thus will keep an accommodative policy even after the recent uptick in bond yields and inflation. He reportedly said that it is “far too early” for the ECB to start thinking about reducing the pace of its bond purchases. Despite, the declines of the past three days, the RF MGS Index still managed to register an uptick of 0.12% this week on the back of the gains recorded on Monday and Tuesday.
  • Following the credit rating downgrade to “BBB” by Fitch yesterday evening, the equity of Bank of Valletta plc shed 2.2% to the €2.201 level (the lowest since mid-August 2016) on volumes totalling 101,031 shares. Fitch explained that it lowered its rating on BOV as it believes that its capitalisation is under pressure from increasing regulatory requirements and that BOV’s current capital ratios are not fully reflecting its operational and market risks. Fitch further added that “although the bank is considering strengthening its capital through a new share offer, this would not be sufficient to meet all future requirements”. Commenting on the downgrade, BOV’s CEO Mr Mario Mallia reaffirmed the Bank’s commitment towards strengthening its levels of capital as well as its risk management framework. Mr Mallia also added that BOV is retrenching from some traditional businesses and addressing legacy issues.
  • The other negative performing equity today was RS2 Software plc which fell by 4.0% to the €1.536 level albeit on shallow volumes totalling 3,747 shares. Last Friday, RS2 issued an Interim Directors’ Statement reiterating that it has a strong business pipeline both in its licencing and processing lines of business. RS2 also indicated that during 2016 the Group’s revenue remained stable and comparable to 2015. However, the adverse impact of foreign currency fluctuations and the expense incurred in relation to the Group’s international expansion have affected the Group’s profitability.
  • In contrast, three other companies ended the day unchanged. HSBC Bank Malta plc traded at the €1.80 level on 10,000 shares whilst a single deal of just 2,500 shares left the equity of Malta International Airport plc at the €4.08 level. Recently, MIA issued an Interim Directors’ Statement in which it revealed that its net profit for the first nine months of the year edged 10% higher to €17.07 million when compared to the same period last year.
  • GO plc managed to recover from an intra-day low of €3.17 to close flat at €3.24 on weak volumes.
  • Simonds Farsons Cisk plc retained its three-month low of €6.45 also on light trading activity.
  • In the property segment, Malita Investments plc edged higher for the first time in a month as it rebounded by 2.2% to the €0.869 level across 12,005 shares.
  • Tigne’ Mall plc also performed positively today as a single deal of 9,440 shares lifted the equity 1.9% higher to the €1.10 level.
  • MaltaPost plc regained the €1.88 level (+3.8%) on trivial volumes. On 6 December, he postal operator will be publishing its financial results for the year ended 30 September 2016.

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