BOV’s equity under pressure

The equity of Bank of Valletta plc remained under pressure during this morning’s session with the share price initially touching a low of €2.115 level – just above the 2014 low of €2.10. However, the equity partially recovered to close just 0.9% below yesterday’s close at the €2.13 level on total volumes of 41,775 shares. The Bank will pay out the interim gross dividend of €0.0425 per share on 23 May.

Malta International Airport plc eased for the second consecutive session with a further 0.4% drop back to the €2.25 level on a single deal of 760 shares.

Similarly, Medserv plc shed 2.3% to fall back to the €1.30 level on low volumes of 3,000 shares despite the publication of the Interim Directors’ Statement. The Directors explained that the Group continued to extend its operations and increase its profitability since the start of 2014 largely due to the services being provided to a mud-mixing and supply operation in Romania. Additionally, the Group has a strong business pipeline with a number of contracts awarded to the Malta base as well as the contract by ENI awarded to the Group’s subsidiary in Cyprus. Furthermore, Medserv is expected to commission the PV farm next month and is on the lookout for any business opportunities in Sicily once the ban on offshore drilling in the region is lifted.

On the other hand, the share price of FIMBank plc edged 2% higher to regain the USD0.78 level on volumes of 4,065 shares. Similarly, the equity of Malita Investments plc advanced by 1.9% to recapture its all-time high of €0.55 on low volumes of 9,107 shares.

6pm Holdings plc also ended this morning’s session in positive territory on the last day for investors to gain entitlement to the final net dividend of GBP0.02 and the 1 for 25 bonus issue. The equity edged 0.7% higher to regain the GBP0.755 level on low volumes of 4,622 shares.

Meanwhile, the share price of HSBC Bank Malta plc ended the session unchanged at the €2.11 level across twenty four deals totalling 36,551 shares.

Likewise, RS2 Software plc held on to its all-time high of €2.40 across 11,800 shares and Tigné Mall plc traded unchanged at the €0.525 level on a single trade of 1,000. Earlier this week, RS2 published its Interim Directors Statement in which it announced that during the first quarter of 2014 revenue grew by 38% to €2.9 million and net profit improved to €0.47 compared to €0.15 in the first three months of 2013. RS2 also confirmed that it continued to progress in negotiations to conclude agreements with new clients and furthermore, the Group’s fully owned subsidiary, RS2 Smart Processing Limited, signed two letters of intent with two prospective clients and also has pending proposals with other prospective clients in Europe and North America.

On the bond market, the Rizzo Farrugia MGS Index gained a further 0.1% to yet another all-time high of 1,039.668 points as Eurozone yields slipped to fresh 1-year lows of 1.359% on the back of increasing pressure on the European Central Bank (ECB) to launch additional stimulus. This follows the revelation of the Q1 2014 GDP figures showing a 0.2% increase compared to the 0.4% consensus forecasts. Additionally, although the inflation rate rose to 0.7% in April (compared to 0.5% in March) this is still within the ‘danger zone’ of below 1%.