BOV trades higher as it turns ex-bonus

Bank of Valletta plc’s equity traded higher in the first session following the adjustment to the 1 for 9 bonus share issue. The share price rose by 1.9% from yesterday’s adjusted closing price of €2.16 (equivalent to the €2.40 pre-bonus price) to €2.20 across twelve trades totalling just over 48,500 shares. The new shares will be issued on Thursday 17 January 2013 with trading expected to commence shortly afterwards.

Various other equities also traded higher today with the share price of FIMBank plc rising by 12.5% to the US$0.90 level as the equity was active for the first time this year. 14,000 shares traded today with further demand remaining outstanding at US$0.885. Also in the financial sector, Middlesea Insurance plc rose by 6.7% to the €0.80 level on low volumes of 500 shares.

Similarly, GO plc edged a further 1.6% higher to an almost 17-month high of €1.25 on a small deal of 500 shares with further offers remaining unsatisfied at the closing price. The share price of MaltaPost plc edged higher for the second consecutive session with a further 2.1% increase to a new 8-month high of €0.96 across 10,000 shares. Further bids for the shares of the postal operator remain unsatisfied at the closing price with lowest offers at the €0.97 level.

On the other hand, HSBC Bank Malta plc’s share price retreated for the third time in the last four sessions with another 1.4% drop back to the €2.702 level on volumes of 15,980 shares. The negative trend in Island Hotels Group Holdings plc persisted with a further 0.7% decline to a new all-time low of €0.685, representing a 13.3% drop since the start of the year and a 31.5% plunge from its October 2009 IPO price.

Meanwhile on the IT front, all three IT equities ended this morning’s session unchanged. RS2 Software plc held on to its all-time high of €0.85 across five trades totalling 31,773 shares and Crimsonwing plc closed unchanged at the €0.55 level on volumes of just over 46,000 shares. Significantly lower volumes were transacted in 6pm Holdings plc with a single trade of 3,880 shares executed at the GBP0.31 level.

The upward trend in the local MGS market entered its eight consecutive session with the Rizzo Farrugia MGS Index hitting a new 27-month high of 1,009.525 points as benchmark 10-year German Bund yields again slid lower to just below the 1.52%. Economic data published this morning showed that the German economy contracted by 0.5% in the fourth quarter of 2012 as eurozone’s powerhouse was impacted by the prevailing crisis in the region. This reignited appetite for safe haven assets.