High volumes across BOV & IHI shares

This morning’s trading session was characterised by substantial trading activity in International Hotel Investments plc shares, Bank of Valletta plc shares as well as across a number of Malta Government Stocks.

Volumes amounting to over 374,000 shares traded in International Hotel Investments plc with the share price edging 0.5% higher to close at the €0.819 level. Last Friday IHI published its Interim Statement claiming that following the end of the hostilities in the Libyan capital, the Corinthia Hotel Tripoli is now gradually returning to normal operations. IHI also reported that the other properties across Europe also reported improvements in their operating profits particularly those in Lisbon and Prague. Moreover, final works on the Corinthia Hotel in London are nearing completion ahead of its first full-year of operations in 2012.

Almost 100,000 Bank of Valletta plc shares traded today across forty five trades ahead of next Friday’s final dividend cut-off date. Shareholders as at close of trading next Friday will be entitled to receive the final gross dividend of €0.08 per share. BOV’s share price recovered by 0.8% to close at the €2.42 level.

Meanwhile, HSBC Bank Malta plc eased 0.7% lower to the €2.68 level in anticipation of the Bank’s Interim Statement which is expected to be published by in the coming days.

MaltaPost plc’s equity closed the day 1% lower at €0.98 on total volumes amounting to almost 50,000 shares across five trades. The postal operator this morning announced that its Board of Directors is scheduled to meet on Thursday 1 December to consider and approve the Company’s financial statements for the financial year ended 30 September 2011.

Increased trading activity was also evident across the Malta Government Stock market particularly in the 3.75% MGS 2015 (VI) with over €2.8 million (nominal) changing hands. The Central Bank of Malta Stockbroker today sharply raised its MGS bid prices as Eurozone yields tumbled back below the 1.8% level. The drop in yields reflects the uncertainty about whether Greece’s new temporary coalition government will be able to implement the necessary changes in order to secure the required bailout package. The markets are now also becoming increasingly wary of the deteriorating situation in Italy whose yields have now surged above the 6.5% level – yields which are deemed to be unsustainable.

Last week, the Treasury announced the issuance of two new Malta Government Stocks. The two issues available for subscription by the General Public for amounts up to €100,000 (nominal) are the 4.25% MGS 2017 (III) and the 5.2% MGS 2031 (I) for a total aggregate amount of €100 million with an over-allotment option of another €44 million. The prices of these stocks will be announced on Thursday 10 November ahead of the subscription period between Monday 14 November and Wednesday 16 November. Further details available at http://rizzofarrugia.com/news-events/2011/new-stock-issues-mgs10/.