RS2 reaches new all-time high

Further demand emerged for the shares of RS2 Software plc ahead of the Company’s Extraordinary General Meeting (EGM) scheduled to be held next Wednesday 2 October. The meeting is being convened for shareholders to consider and approve a number of proposed changes to the Memorandum & Articles of Association. The changes are part of an agreement between ITM Holding Ltd (the major shareholder in RS2) and Barclays Bank plc for the latter to acquire a 10% shareholding in RS2 from ITM. Barclays have also revealed their intentions to acquire a further 10% stake from the secondary market. Moreover, Barclays also acquired a licence from RS2 worth an initial GBP8.5 million. The equity this morning jumped 6.4% to a new all-time high of €2.00 before a last minute deal of just 300 shares forced the equity back to the €1.95 level which still represented a 3.8% increase over the previous close. A total of 28,845 shares changed hands today.

The share prices of the two large banks also performed positively. Bank of Valletta plc edged 1.3% higher to regain the €2.40 level on low volumes of 3,000 shares. Higher volumes were transacted in HSBC Bank Malta plc with the equity rising by 1% to recapture the €2.505 level across eight trades totalling 17,300 shares.

Tigné Mall plc also ended this morning’s trading session in positive territory with a 1% rise to the €0.51 level on a single trade of 6,000 shares.

Meanwhile, the only other active equity, namely Crimsonwing plc, ended the session unchanged at the €0.74 level on a deal of 3,150 shares.

On the bond market, the Rizzo Farrugia MGS Index slipped a further 0.1% lower to 1,020.152 points to end the week in negative territory reflecting the downgrade of Malta’s credit rating by Fitch from ‘A+’ to ‘A-‘. In fact, this week’s movements in the local MGS benchmark contrasted the 15 basis point drop in Eurozone yields to 1.8% thereby reversing some of the increases registered since mid-July.