GO slips back to the €1.60 level

During this morning’s session the share price of GO plc slipped 2.7% lower to the €1.60 level on a single deal of 3,000 shares. This decline coincided with the announcement of Forthnet S.A. in which it revealed that the price for the upcoming rights issue (with an entitlement of 15 new shares for every 2 shares currently held) has been set at €0.30 per share, equivalent to the nominal value. In a separate announcement, GO reiterated that its Directors will only take a decision whether to participate or otherwise once the relevant prospectus is published in the coming weeks.

A decline was also registered in the share price of Malta International Airport plc as the equity inched 0.5% lower to €1.94 on low volumes of 2,000 shares. Insignificant volumes were also registered in FIMBank plc as 200 shares changed hands at the US$0.94 level representing a 1.2% drop from the previous close.

Similarly, the share price of Crimsonwing plc eased minimally lower to €0.739 on a trade of 31,000 shares.

On the other hand, the equity of Bank of Valletta plc reversed yesterday’s decline with a 0.9% increase to regain the €2.38 level on low volumes of 6,493 shares. New demand helped the share price of Island Hotels Group Holdings plc advance by 3.1% to the €0.67 level on volumes of 96,000 shares.

Meanwhile, the only other active equity, HSBC Bank Malta plc, ended the session unchanged at the €2.63 level on volumes of almost 8,000 shares.

Shortly after the close of today’s trading session, Lombard Bank Malta plc published its half-year results covering the six months ended 30 June 2013. The Group registered a 6.2% drop in net profit to €2.5 million as the growth in income both at bank level and at MaltaPost (in which Lombard has a 67.7% stake) was offset by increased loan provisions at the bank. These impairments were mainly related to corporate loans.

On the bond market, the Rizzo Farrugia MGS Index shed 0.2% to a new 7-week low of 1,020.694 points as Eurozone yields reached the 1.91% level for the first time since late March 2012. The recent upward trend in yields has been supported by widespread speculation that the US Federal Reserve is close to start reducing its stimulus program.