BOV’s share price up 5% this week

The share price of Bank of Valletta plc edged a further 0.5% higher today on volumes of 12,450 shares to wrap up a positive week with a 5% gain. BOV’s share price initially touched a 33-month low of €2.00 earlier this week but recovered to the €2.10 level placing it as the best performer of the week.

The equity of HSBC Bank Malta plc also closed in positive territory for the fifth consecutive week. HSBC’s share price advanced by 1.6% this week in anticipation of the publication of the full-year results this afternoon. The financial statements reveal a 5.7% increase in net profit to €34.5 million reflecting the 2.4% increase in net operating income to a record €99.1 million and the significant decline in impairments to €0.8 million which offset the 5.8% increase in the Group’s cost base. The directors declared a gross interim dividend of €0.10 per share which represents a 22% increase over the June 2011 interim dividend. This dividend is payable on 22 August to all shareholders as at close of trading on Friday 3 August.

On the IT front, 6pm Holdings plc shares were active for the first time in two months with the share price sliding by 12.5% to a new 1-year low of GBP0.28 on a single deal of 1,000 shares.

Meanwhile, the only other active equity, GO plc, traded unchanged at the €1.05 level across 7,550 shares. GO’s equity ended the week 2.8% lower.

On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to 992.970 points to end the week practically unchanged. On the other hand, the 10-Year German Bund Yields opened the week at a new all-time low of 1.126% but rebounded in the subsequent days as the escalating Eurozone sovereign debt crisis weakened Germany’s safe-haven status. The rebound gained further momentum in the latter part of the week as the European Central Bank’s President Mario Draghi, German Chancellor Angela Merkel and French President Francoise Hollande reiterated their commitment to safeguard the single currency. Following these comments, Eurozone yields touched a 3-week high of 1.40%.