BOV’s share price slips to 2012 low

The share price of Bank of Valletta plc eased by 0.9% to drop back to the equity’s 2012 low of €2.05 on volumes of 35,162 shares. Meanwhile, HSBC Bank Malta plc’s equity edged marginally higher to €2.501 across three trades totalling 4,400 shares.

On the other hand, GlobalCapital plc shares, active for the first time in four months, plunged 11.7% to a new 2012 low of €0.83 on a small deal of 400 shares. The market is still awaiting developments with respect to ways in which the Company intends to maintain appropriate capital and liquidity levels in order to be in conformity with regulatory minimums. In a December 2011 announcement, GlobalCapital had announced that it intends to take the necessary actions, including a possible increase in equity, in this respect by the end of the first half of 2012.

The only other active equity during this morning’s session was International Hotel Investments plc with a single trade of 550 shares transacted at the €0.90 level, unchanged from the previous close.

On the bond market, the Rizzo Farrugia MGS Index eased minimally lower to 985.554 points as the Central Bank Stockbroker significantly lowered its bid prices for the longer-term local government paper. This contrasts with the dip in Eurozone yields closer to the 1.5% level following an agreement between the leaders of Germany, France, Italy and Spain on a €130 billion package to boost economic growth in the region. Moreover, German Chancellor Angela Merkel maintained her stance against the introduction of Eurobonds or a wider scope for Europe’s rescue funds. Meanwhile, hopes of new measures to counteract the prevailing Eurozone debt crisis waned ahead of this week’s EU summit (scheduled to be held on Thursday and Friday) as Spain formally requested a bailout to recapitalise its banking system. As a result, Europe’s main equity benchmarks are in negative territory with the US Dollar strengthening against the euro to below the USD1.25 level.

Locally, last Friday afternoon, the Treasury published the results of the June 2012 Malta Government Stock issue. The Treasury announced that it received a total of 5,119 applications for a value exceeding €191.5 million (nominal) compared to the €180 million on offer. The Treasury stated that it allotted a total of €179.69 million (nominal) in the three fixed-rate stocks as follows: €48.05 million in the 3.75% MGS 2017 (IV); €52.49 million in the 4.3% MGS 2022 (II) FI  and €79.14 million in the 5.1% MGS 2029 (I).