RS2 Software reaches new 45-month high

The share price of RS2 Software plc advanced by a further 2.9% to close at a new 45-month high of €0.72 across a single trade of 25,000 shares. The IT equity ranks amongst the top performers of this year with a 28% jump on the back of two licence and service agreements valued at an aggregate €6.5 million. Moreover, the Company is in advanced negotiations with respect to a third licence contract as well as the first contract in relation to the recently launched managed services. As a result, the Directors expect the 2012 financial performance to better than of 2011 when the company generated pre-tax profits of €2.38 million.

Similarly, GO plc hit a new 5-month high of €1.12 on low volumes of 3,000 shares.

Meanwhile, the equities of the two large banks traded lower. Bank of Valletta plc dropped 1.4% to €2.371 across six trades totalling 22,999 shares with HSBC Bank Malta plc retreating by 0.7% to the €2.70 level on shallow volumes of 2,400 shares.

Also in the banking sector, Lombard Bank Malta plc held on to the €1.80 level across three trades totalling 34,160 shares. Likewise, no changes were registered in the share prices of Plaza Centres plc, Malta International Airport plc and Crimsonwing plc.

On the bond market, the Rizzo Farrugia MGS Index edged marginally higher to 1,003.566 points as Eurozone yields slipped further below the 1.28% level as investors intensified their demand for safe haven assets in view of the political crisis in Italy. The  borrowing costs of the Italy soared this morning, with the 10-year yield reaching a 3-week high of 4.9%, after Prime Minister Mario Monti announced that he will be resigning soon after the 2013 budget is approved given that his technocratic government has lost the support of Silvio Berlusconi’s party – the largest party in Italy’s parliament. The crisis in Italy also impacted Spain’s borrowing costs which also touched a 3-week high of 5.678%.