MSE Share Index slides to 3-month low

The MSE Share Index slid by 0.7% during this morning’s session to a fresh 3-month low of 3,387.408 points as most of the active equities closed in negative territory.

The equities of the three retails banks listed on the Borza were amongst today’s negative performers. HSBC Bank Malta plc dropped by 0.4% to the €2.54 level on 6,510 shares. Low volumes were also transacted in Lombard Bank Malta plc as the equity eased by 1.6% to the €1.87 level on a trade of 5,000 shares. The share price of Bank of Valletta plc also retreated by 0.8% to €2.34 but on higher volumes of 32,708 shares. BOV’s financial year comes to an end this month with the preliminary full-year results generally published by the end of October.

The share price of GO plc suffered a 5.1% decline to €1.50 – the lowest level since 20 March 2013. A total of 23,540 shares changed hands today across five deals.

Similarly, MaltaPost plc shed 2% to end this morning’s session at a 7-month low of €0.98 on volumes of 15,479 shares. The postal operator also marks the end of its financial year this month with preliminary results generally published in early December.

MIDI plc also succumbed to selling pressure as the equity slumped 8.3% to a new all-time low of €0.22 on just 2,000 shares. MIDI is expected to register a loss for the financial year ending 31 December 2013 due to the limited number of apartments available for sale. However, by the fourth quarter of this year, MIDI is expected to launch the apartments in the T17 East residential block currently being constructed.

On the other hand, further demand emerged for shares of RS2 Software plc with the equity advancing by a further 2.8% to a new all-time high of €1.85 across four trades totalling 23,644 shares. The Company is scheduled to hold an Extraordinary General Meeting on 2 October to propose to shareholders a number of changes to the memorandum and articles of association. These changes are required to seal the recently announced GBP8.5 million licence deal with Barclays Bank plc and a 10% shareholding in RS2.

The only other equity in positive territory was Malita Investments plc with a 2% increase to the €0.51 level across three deals totalling 20,000 shares.

Meanwhile, a further four equities ended this morning’s session unchanged. In the property segment, Plaza Centres plc held on to the €0.56 level across 29,000 shares and Tigné Mall plc maintained the €0.515 level on a deal of 29,000 shares.

Elsewhere, a total of 65,800 Crimsonwing plc shares changed hands at the €0.74 level. Crimsonwing’s interim results to 30 September 2013 are generally published by the end of November.

The equity of Malta International Airport plc also closed unchanged today at the €1.89 level across 10,500 shares. The airport operator is scheduled to pay the net interim dividend of €0.03 per share on 23 September.

On the bond market, the Rizzo Farrugia MGS Index dropped for the third successive session with another 0.2% decline to a fresh 2-month low of 1,019.883 points as the benchmark Eurozone yields reached 2.02% for the first time since the first quarter of 2012. However, this afternoon, yields slipped back to the 1.98% level following less-than-expected growth in US job figures which could possibly delay the start of the reduction in the US Federal Reserve stimulus programme.

Meanwhile, Medserv plc recently announced the issuance of €13 million 6% Secured and Guaranteed Notes due 2020/23. Interest is payable twice yearly on 31 March and 30 September. The preplacement will take place on 19 September 2013 and the General Public Offer opens on 23 September 2013. Minimum applications are for €2,000 and in multiples of €100 thereafter.