Banking equities and MaltaPost recover

Friday’s trading session on the Malta Stock Exchange was characterised by a recovery in the shares prices of the two large retail banks and MaltaPost plc which helped the MSE Share Index recover from yesterday’s 8-month low. The local equity benchmark advanced by 0.4% today to 3,392.761 points but still closed the week 0.4% lower as a result of the losses sustained in a number of equities in the early part of the week.

Bank of Valletta plc edged 0.5% higher to €2.13 on continued low trading activity of 7,252 shares. BOV ended the week with a decline of 0.5%. Meanwhile, HSBC Bank Malta plc increased by 1% today to regain the €2.11 level and end the week marginally above last Friday’s close.In the banking sector, Lombard Bank Malta plc closed 0.8% above its adjust post bonus price as 1,500 shares traded at €1.45.

The equity of MaltaPost plc managed to recover completely from yesterday’s 8.9% drop back to its 2014 low of €1.02. Fresh demand entered the market this morning helping the equity regain the €1.12 level on total volumes of 13,767 shares. Earlier this month, MaltaPost published its interim results showing a 21.3% increase in pre-tax profits to €1.2 million (the highest level in the last three years). MaltaPost had stated that the company remains on the lookout for new opportunities that add further value to its product offering.

Three other equities closed the day unchanged. GO plc held on to the €1.94 level on volumes of 4,200 shares and Malta International Airport plc failed to recover from the losses in mid-week as it closed at €2.20 representing a 3.5% decline this week. High trading activity took place in Tigne Mall plc with 383,000 shares changing hands at the €0.52 level. Tigne Mall will be convening its Annual General Meeting next month and the company will subsequently pay its maiden dividend to all shareholders.

Another two equities ended the day lower, namely International Hotel Investments plc (-0.25% to €0.798) and Medserv plc (-2.3% to €1.27).

On the bond market, the Rizzo Farrugia MGS Index edged minimally lower to 1,039.836 points as a number of the long-term MGS prices declined in response to the slight recovery in Eurozone yields to the 1.37% level.

Yesterday the Treasury established the price of the 4.3% MGS 2033 (I) at 100.75% (YTM: 4.242%). The total aggregate amount on offer is of €100 million subject to an over-allotment option of up to a further €80 million. The General Public has the possibility of applying in this issue in multiples of €100 and up to a maximum amount of €100,000 (nominal) per application. For applications in excess of €100,100 (nominal), a tendering process applies. Subscriptions for the General Public open on Monday 2 June and close on Wednesday 4 June while tenders in the form of sealed bids will be accepted until noon on Monday 9 June.