GO up 2.3% in December’s first session

The share price of GO plc kicked off the month of December in positive territory following three consecutive monthly gains. Earlier in the year, the equity of the quad-play telecoms operator had sunk to historic lows as the profits generated by the local operations were still being offset by the losses incurred on the Group’s share of the investment in the Greek telecoms group Forthnet. However, after the Annual General Meeting in May, during which GO’s Directors revealed the set-up of a new subsidiary which will be entrusted to extract value from the Group’s €50 million property portfolio, GO’s share price rallied to reach a 2012 high of €1.20. Selling pressure resurfaced during the months of July and August on the back of renewed uncertainty on whether GO will subscribe to its share of the €30 million Forthnet rights issue. Although the decision has not yet been taken, the share price of GO recovered by 25.3% during the past three months. This morning GO’s share price edged a further 2.3% to regain the €1.09 level across six trades totalling 10,000 shares.

Bank of Valletta plc shares also traded higher this morning with a 0.2% increase to the €2.42 level across eleven trades totalling 17,950 shares. The Bank is scheduled to hold its Annual General Meeting on 19 December.

Meanwhile, the share price of HSBC Bank Malta plc eased 1.1% lower to €2.72 on a single deal of 2,500 shares.

The only other active equity during the first trading session of December was Malta International Airport plc which held on to the €1.80 level on a small trade of 500 shares.

On the bond market, the Rizzo Farrugia MGS Index edged a further 0.1% higher to yet another fresh 2-year high of 1,003.223 points as the Central Bank of Malta Stockbroker raised its bid prices for local government paper for the fourth consecutive session. Meanwhile, benchmark 10-year German Bund yields surged above the 1.40% level by this afternoon reflecting renewed demand for riskier sovereign bonds (particularly Spain and Italy) after Greece announced better-than-expected terms for its bond buy-back offering. When Greece concludes this debt buy-back, the International Monetary Fund will release its share of aid agreed to with Eurozone finance ministers during last week’s summit.