RS2 & Farsons slip back despite profit increases

The improved financial results of RS2 Software plc and Simonds Farsons Cisk plc failed to support the respective equities as they closed in negative territory during this morning’s session.

RS2 Software plc shed 5.9% to move back to the €0.96 level on high volumes totalling 359,305 shares. Earlier this week the company reported a 32.5% increase in pre-tax profits to €3.15 million on the back of a higher incidence of licence sales to new clients as well as increased service fees generated both from new and existing clients. RS2 also re-instated a final net dividend of €0.025 per share and recommended a 1 for 16 bonus share issue.

Lower volumes were registered in Simonds Farsons Cisk plc with 3,341 shares changing hands. The share price eased by 0.4% to the €2.54 level in spite of the record pre-tax profits of €6.5 million registered during the financial year ended 31 January 2013 and the record final net dividend of €0.07 per share.

The share price of HSBC Bank Malta plc also dropped during this morning’s session. The equity slipped 3% lower to the €2.60 level for the first time since mid-August 2012 on low volumes of 3,800 shares.

On the other hand, Malita Investments plc was the only positive performing equity during this morning’s session with a 2% increase to regain the €0.52 level across two deals totalling 15,000 shares.

Meanwhile, Bank of Valletta plc failed to hold to an intra-day high of €2.28 to close the session unchanged at the €2.27 level on volumes of 39,227 shares. The Bank published its 31 March 2013 half-year results after the close of the session afternoon. The BOV Group registered a 31.5% increase in pre-tax profits to €64.6 million and the bank declared a gross dividend of €0.06 per share to shareholders as at close of trading on 6 May.

Similarly, FIMBank plc closed unchanged at the US$1.00 level after easing from an intra-day high of US$1.01 across 30,000 shares.

GO plc also ended this morning’s session unchanged at the €1.57 level on volumes of 13,275 shares. Single trades were executed in International Hotel Investments plc and Plaza Centres plc at their previous closing prices of €0.74 and €0.57 respectively.

On the bond market, the Rizzo Farrugia MGS Index edged marginally higher to reach a new all-time high of 1,021.900 points as Eurozone yields dipped back below the 1.25% level as market participants continue to speculate that the European Central Bank will announce a rate cut during next week’s monthly monetary policy meeting.