BOV share price up 6.3% following results publication

The share price of Bank of Valletta plc jumped 6.3% today to regain the €2.55 level on strong volumes of over 41,000 shares following the publication of the financial results last Friday. Although BOV announced a 34.3% drop in profitability to €41.7 million and a 40% decline in the full-year dividend to shareholders, the reaction in the market was positive with a strong recovery in the share price.

BOV’s financial performance was negatively impacted by fair value mark-downs on the Bank’s investment portfolio totalling €24.9 million and a €15 million one-off cost related to the buy-back offer to investors in the La Valette Multi-Manager Property Fund.

The final gross dividend of €0.08 per share is payable to those shareholders as at close of trading on Friday 11 November 2011. BOV also recommended a 1 for 8 bonus issue to shareholders as at close of trading on 9 January 2012.

The upturn in BOV’s equity helped improve investor sentiment across the market with gains registered in 3 other equities. The MSE Share Index climbed by 2% to 3,154.605 points – the highest level since 15 September 2011.

HSBC Bank Malta plc’s equity advanced by 1.9% to €2.69 across six trades totalling 6,500 shares with GO plc also in positive territory as new bids helped the equity rise by 2% to regain the €1.05 level with over 5,000 shares changing hands today. Likewise, RS2 Software plc edged 1.7% higher to the €0.59 level on a single trade of 7,000 shares.

Meanwhile Malta International Airport plc failed to hold on to an intra-day high of €1.76 as the equity eased back to the €1.75 level. Almost 30,000 shares traded today ahead of the October passenger numbers which are expected to be announced shortly. Recently, the airport operator announced that it revised passenger growth forecast upwards to at least 4.5%.

On the bond market, the Rizzo Farrugia MGS Index climbed 0.2% higher to 983.252 points as Eurozone yields lower on increased scepticism over last week’s deal reached amongst EU leaders and the high rates that were paid by Italy for a fresh issue of 10-year bonds.