MSE Share Index up on gains in BOV and Tigne Mall

The MSE Share Index edged 0.2% higher to 3,284.791 points today following gains in the shares prices of BOV and Tigne Mall which offset the declines in the equities of Middlesea and MaltaPost.

Bank of Valletta plc continued to edge higher and closed up 0.9% at the €2.14 level on activity amounting to 15,106 shares.

The only other positive performer was Tigne Mall plc with a gain of 1.9% to the €0.525 level on shallow volumes of 2,000 shares. The company is expected to issue its interim results on next Wednesday this week.

Meanwhile, HSBC Bank Malta plc held on to the €1.985 level on volumes of 11,380 shares. Similarly, GO plc retained its multi-year high of €2.45 level as 3,600 shares changed hands at this leveland FIMBank plc held on to its US$0.65 level across 2 trades totalling 22,594 shares.

Crimsonwing plc also closed the day unchanged at €0.81 but volumes were also week with only 2,400 shares changing hands. Last Thursday Crimsonwing held its Annual General Meeting during which all resolutions were approved including the authority granted to the Directors to furnish information to bona-fide offerors. Further information in this respect is expected in the weeks ahead once the financial due diligence is concluded.

International Hotel Investments plc traded again at its all-time low of €0.65. The interim financial results published last Friday afternoon depict the weak performances in its St Petersburg and Tripoli due to the unrest in both countries. Earnings before interest, tax, depreciation and amortisation dropped by 24% to €12.4 million and the Group registered a net loss of €7.7 million (1H2013: €4.4 million). IHI’s Directors acknowledged that the annual results are expected to be further impacted by the negative sentiment in Libya and Russia.

Middlesea Insurance plc closed in negative territory across a trade of 71 shares at €0.93 (-2.1%). Similarly, Maltapost plc declined by 0.9% to €1.13 on a trade of 2,126 shares despite last week’s announcement that since the start of the second half of their 2013/14 financial year on 1 April 2014, revenue increased principally due to new service offerings, product enhancements and increase in certain tariffs, mitigating the negative effects of a decline in traditional mail. In the Interim Statement, MaltaPost’s Directors stated that they are confident that for the year ending September 2014, the company will report improved profits compared to previous years.

The Eurozone 10-year Bund yields touched another record-low of 0.928% earlier on today as Mario Draghi’s comments at the annual meeting of central bankers in the US last Friday indicated that the ECB could embark on a large-scale asset-buying scheme (known as quantitative easing) to pump cash in the financial system and revive inflation. The decline in Eurozone yields resulted in a further upswing in the prices of Malta Government Stocks which sent the Rizzo Farrugia MGS Index to a fresh high of 1,072.341 points.