BOV shares retreat on high volumes

Almost 124,000 Bank of Valletta plc shares changed hands today as the equity eased 0.4% lower to €2.051 – minimally above its 2012 low. Meanwhile HSBC Bank Malta plc traded unchanged at the €2.52 level on very low volumes of 600 shares.

On the other hand, GO plc temporarily touched the €1.00 level for the first time this year before easing back to close at the €0.99 level representing a 2.1% increase over last Friday’s close. A total of 46,380 GO shares changed hands today with the equity now joining the list of equities which performed positively so far in 2012 with a year-to-date increase of 1%.

RS2 Software plc partially recovered from last week’s 2% decline as its share price edged 1% higher to regain the €0.505 level across three trades totalling 13,800 shares. The AGM of RS2 is scheduled to be held tomorrow.

On the bond market, the Rizzo Farrugia MGS Index edged marginally higher to 988.599 points despite this morning’s significant recovery in Eurozone yields to above the 1.40% level. This followed this weekend’s approval of a €100 billion EU-funded rescue for Spain’s debt stricken banks. However, the positive reaction was short-lived as doubts over the terms and structure of the bailout deal as well as concerns over whether this is enough for Spain surfaced reversing the earlier increase in eurozone yields which by the afternoon were closer to the 1.30% level.

Later on this afternoon, Mediterranean Investments Holding plc will be convening a meeting for holders of the 7.15% bonds to approve a change to the use of bond proceeds originally set out in the Prospectus. The Company is requesting bondholders to vote on a proposal which will allow the Company to use €8 million of the 2010 bond proceeds to finance the part repayment of the €13.2 million 2011 loan taken out during the Libyan civil war to counteract the lost business from Palm City and be able to meet the payment of capital creditors and other commitments during the political turmoil.