MSE Share Index rebounds into positive territory

Following six consecutive sessions of declines, the MSE Share Index rebounded into positive territory during this morning’s session with a 0.2% increase to 3,451.102 points. Today’s uplift was largely due to the 0.9% increase in the share price of Bank of Valletta plc to regain the €2.20 level on volumes of 30,562 shares. Last Friday, BOV published its 2014 interim results revealing a profit before taxation of €50.7 million for the first half of their 2013/14 financial year, a decrease of 21 per cent when compared to the pre-tax profit of €64.6 million earned in the first six months of the previous financial year. The drop is largely attributable to lower net interest income, a reduction in fair value movements as well as a lower contribution from insurance operations. A gross interim dividend of €0.0425 (-22%) was declared to those shareholders as at close of trading on 5 May.

The share prices of RS2 Software plc and MaltaPost plc also performed positively. The IT equity touched an intra-day high of €2.429 but subsequently eased back to the €2.40 level which represents a minimal increase over the previous closing price. The equity of the postal operator jumped 2% to regain the €1.04 level on a single deal of 2,000 shares. MaltaPost is shortly expected to publish its March 2014 interim results.

Meanwhile no change was registered in the share price of HSBC Bank Malta plc at the €2.142 on volumes of 8,600 shares. Similarly, the equity of Lombard Bank Malta plc ended this morning’s session unchanged at the €1.63 level on a small trade of 161 shares.

Island Hotels Group Holdings plc also ended this morning’s session unchanged at the €0.85 level across two deals totalling 5,000 shares. Yesterday, Island Hotels announced that it submitted an application to the Listing Authority in connection with the issue of a new €35 million bond.

On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 1,034.623 points as Eurozone yields slipped back below the 1.50% level. Markets will now shift their focus on next week’s European Central Bank (ECB) policy meeting after eurozone inflation figures rebounded to 0.7% easing pressure on the ECB to introduce further stimulus measures.