BOV forces MSE Share Index to below 3,500 points

During this morning’s trading session on the Borza, the MSE Share Index retreated by 0.3% back to 3,499.077 points – its lowest level in the last nine trading sessions. This morning’s decline was mainly due to the 2.1% drop in the share price of Bank of Valletta plc across ten deals totalling almost 22,100 shares. Tomorrow he Bank is scheduled to publish its interim results, covering the six months ended 31 March 2014.

Similarly, the share price of Malita Investments plc eased by 1.8% to the €0.54 level on a single trade of 2,000 shares.

On the other hand, new bids emerged today helping the equity of RS2 Software plc recover most of yesterday’s 3.6% drop with a 3.4% increase to regain the €2.41 level on higher volumes of 21,842 shares. Yesterday, the Company published its 2013 full-year results revealing a 35.1% increase in pre-tax profits to €4.26 million on the back of a number of licence sales which carry a higher margin as well as the added contribution from the newly launched managed services. The Directors recommended a net dividend of €0.0235 per share and a 1 for 17 bonus issue to all shareholders as at the close of trading on Wednesday 7 May.

The share price of International Hotel Investments plc inched minimally higher today to €0.84 on shallow volumes of 544 shares. Yesterday, the IHI Group reported a 26.2% improvement in EBITDA to €34.98 million as all its fully-owned properties (apart from the hotel in Lisbon) reported higher revenues. Nonetheless, the EBITDA figure was mainly wiped out by the depreciation and finance costs leading to a breakeven position. The recently declared dividend of €0.03 net per share is payable to all shareholders as at close of trading on Monday 28 April.

The equity of Middlesea Insurance plc also climbed 4.4% to €0.94 but on insignificant volumes of 20 shares.

Meanwhile, no change was registered in the share price of HSBC Bank Malta plc at the €2.38 level across six trades totalling 15,213 shares. Likewise, the equity of Island Hotels Group Holdings plc and Grand Harbour Marina plc (still has to publish its 2013 full-year results) maintained the €0.85 and €1.82 price levels respectively on very low volumes.

On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to a new high of 1,033.706 points. This contrasted with the recovery in Eurozone yields to 1.538% on a somewhat renewed appetite for risk after a surprise rise in German business confidence. Portugal yesterday successfully sold €750 million of a 10-year bond on its return to the bond market after requesting international financial aid in 2011.