GO hits new 2014 high

The share price of GO plc continued to trend higher during this morning’s trading session on the Borza with a further 3.2% increase to a fresh 2014 high of €2.115 across nine deals totalling 20,800 shares. Yesterday GO issued an announcement which replicated the statement made by Forthnet S.A. The Greek company revealed that OTE S.A. (the incumbent telecoms operator in Greece) has submitted a non-binding offer to acquire the NOVA pay-tv platform of Forthnet for a consideration ranging between €250 million to €300 million, on a debt free/cash free basis (i.e. excluding net debt). The announcement further explains that the offer is based on certain assumptions and is subject to terms and conditions, customary to such transactions. The Board of Directors of Forthnet S.A. noted that it will evaluate the offer and inform the investing public accordingly. Meanwhile the share price of Forthnet rallied by 18% on the news.

The only other positive performing today was Bank of Valletta plc with a 1.2% rise to recapture the €2.045 level across fourteen deals totalling 27,328 shares.

On the other hand, the share price of HSBC Bank Malta plc eased minimally lower to €2.049 on a small trade of 1,700 shares. Similarly, the equity of Malta International Airport plc slipped 2.4% lower back to the €2.22 level on just 1,588 shares.

Low volumes were also transacted in RS2 Software plc. The equity initially slipped to an intra-day low of €2.43 before partially recovering to end the session at the €2.599 level which still represented a 1.9% drop from the previous closing price. Only 2,500 shares traded today.

Meanwhile, no change was registered in the share price of Medserv plc as a further 5,900 shares traded at the €1.25 level. This morning, the company inaugurated Malta’s first solar panel farm at its headquarters in Malta Freeport consisting of 8,000 panels spread over 20,000 square metres. The project cost €4 million and will produce two megawatts of electricity which will be sold to Enemalta.

On the bond market, the Rizzo Farrugia MGS Index trended higher for the tenth consecutive session with a further 0.1% increase to a new all-time high of 1,056.369 points as Eurozone yields slumped back to the 1.236% level. However, by this afternoon, the benchmark 10-year bund yield jumped towards 1.26% as better-than-expected preliminary US jobs figures triggered a sell-off across bonds touted by some to be overvalued. Furthermore, the better-than-expected improvement in US jobs figures could lead to accelerated tightening by the US Federal Reserve.