Recovery in share prices of large banks

The equities of the two large banks reversed yesterday’s declines on fresh demand for these shares helping the MSE Share Index close 0.3% higher at 3,008.860 points. Bank of Valletta plc advanced by 0.9% to regain the €2.20 level on increased volumes of 28,264 shares. Similarly, HSBC Bank Malta plc’s share price rose 0.6% to the €2.60 level across twelve trades totalling 12,124 shares. HSBC’s equity is still trading with the entitlement to the recently recommended final gross dividend of €0.072 per share. This equity turns ex-dividend as from 14 March.

The only other active equity, Simonds Farsons Cisk plc, eased 1.7% lower to €1.72 across three trades totalling 1,724 shares.

On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to 988.605 points following marginal reductions in the bid prices of Malta Government Stocks by the Central Bank of Malta.

This morning the European Central Bank (ECB) announced the results of its second liquidity injection in just two months to counter the lack of liquidity in the wholesale market and ease tensions in the region’s bond market. Following the €489 billion borrowed in December 2011, over 520 European institutions were today allotted a record €529.5 billion in 3-year loans.

Locally, this morning Corinthia Finance plc published the Prospectus in conjunction with the new €7.5 million 6% bond maturing between 2019 and 2022 following approval by the Listing Authority last Monday. Copies of the Prospectus are available at http://rizzofarrugia.com/news-events/2012/details-of-new-bond-issue-cfc03/.