BOV drags MSE Share Index to 2-week low

The MSE Share Index closed in negative territory for the fifth time in the last six sessions with a decline of a further 0.4% to a fresh 2-week low of 3,325.957 points. This morning’s retreat was largely due to the 1.8% drop in the share price of Bank of Valletta plc back to the €2.19 level for the first time in six weeks. A mere 19,032 shares changed hands across eight deals ahead of the Group’s full-year results publication which this year will also coincide with the publication of the Asset Quality Review (AQR) conducted by the European Central Bank (ECB). Last Friday, the ECB announced that the AQR results will be published on 26 October.

Similarly, the share price of Middlesea Insurance plc shed 7.4% to €0.87 on shallow volumes of 1,652 shares.

The only other negative performer was Crimsonwing plc as the IT equity eased 1.4% lower to the €0.789 level on a small deal of 418 shares. Investors are still awaiting news regarding the intention of the potential bidders following the approval during the August Annual General Meeting to furnish such bidders with price sensitive information.

On the other hand, the share price of HSBC Bank Malta plc edged 1.4% higher to €1.988 on an insignificant trade of 200 shares.

Meanwhile, Malta International Airport plc (€2.34) and GO plc (€2.68) held on to their previous price levels on shallow volumes of 2,100 shares and 1,851 shares respectively.

Malita Investments plc also held on to he €0.56 level on a single deal of 2,000 shares. Likewise, 6pm Holdings plc shares maintained the GBP0.72 level albeit on higher volumes of 41,691 shares.

On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to yet another all-time high of 1,091.571 points as benchmark yields remained near all-time lows amid global growth concerns especially in the eurozone. The latter was highlighted today by the credit rating downgrade of Finland to ‘AA+’ (one of the last few European nations which had a ‘AAA’ rating) by Standard’s & Poor’s which also cut France’s outlook to negative.

Two new bond issues were launched last week. Hal Mann Vella Group plc published a formal notice in connection with the issue of €30 million 5.0% Secured Bonds 2024 and United Finance plc announced the issue of €8.5 million 5.3% Unsecured Bonds 2023. Further information available from www.rizzofarrugia.com