GO and BOV test new lows

GO plc’s share price tested a new all-time low of €0.865 before recovering in the last moments of this morning’s trading session to close unchanged at the €0.95 level. Trading activity increased significantly to 218,200 shares during this morning’s session across sixteen trades with the majority taking place at the low of €0.865. Last week, the shareholders of Forthnet S.A. (in which GO has an indirect investment) rejected all the resolutions presented to them during the Extraordinary General Meeting including a €30 million rights issue in line with the conditions of the restructured debt. Prior to the meeting, GO also announced that it was opposing these resolutions. The market now awaits further news on the future of Forthnet since according to the agreement with their bankers, the fresh capital injection of €30 million had to take place by end of January 2012.

Similarly, Bank of Valletta plc’s equity stumbled to a new 2-month low of €2.20 before partially recovering to end today’s session 1.3% lower at the €2.22 level on volumes of over 35,500 shares. Today’s downturn follows yesterday’s media articles which revealed a reprimand by the Malta Financial Services Authority to a director of the La Valette Funds SICAV plc for disposing of his holdings in the La Valette Multi Manager Property Fund whilst in possession of sensitive information. Over the last five sessions, the Bank’s equity retreated by a total of 3.1%.

Elsewhere in the local equity market, HSBC Bank Malta plc closed unchanged at the €2.55 level representing a 0.8% weekly drop. Likewise Malta International Airport plc held on to the €1.75 level but ended the third consecutive week in positive territory with a 1.7% weekly increase. MIA today announced that its 2011 full-year financial statements will be published on 22 March 2012.

Overall, the MSE Share Index ended this week 0.8% lower at a new 2012 low of 3,080.609 points.

Similarly, the Rizzo Farrugia MGS Index closed the third week of 2012 in negative territory with a 0.1% drop reflecting the increase in Eurozone yields. This afternoon, benchmark yields shot up past the 1.90% level as the private holders of Greek debt edge closer to reach a deal in order to avoid a disorderly default. High trading activity took place in the longer-term MGS issues today.