BOV at 2-year low ahead of results publication

During this morning’s trading session on the Borza, the share price of Bank of Valletta plc declined by 0.8% to close a new 2-year low of €2.43 ahead of the Bank’s full-year results publication next Friday. More than 26,000 shares changed hands today with the price registering a low of €2.41 and further offers remaining unsatisfied at the closing price of €2.43.

Similarly, HSBC Bank Malta plc dropped 1.1% lower to the €2.63 level on volumes of just over 6,000 shares.

Over the weekend media reports revealed that Maltese banks have limited exposure to Greek sovereign debt with the largest exposure being that of BOV which amounts to €9 million. The reports indicated that Maltese banks will not be in need of a fresh capital injection under an EU plan which is being devised to contain the sovereign debt crisis. However, the same reports noted that local banks have much larger exposures to the other larger countries, mainly Italy and Spain.

Selling pressure was also evident in the shares of GO plc as the equity shed a further 1.7% to a new all-time low of €1.001 across ten trades totalling 42,300 shares. GO shareholders now await the outcome of next Thursday’s Extraordinary General Meeting of Forthnet convened for the purposes of approving a number of changes to the capital structure as well as a €30 million rights issue.

Meanwhile Malta International Airport plc maintained its three-month high of €1.70 as another 1,100 shares changed hands at this level.

On the bond market, the Rizzo Farrugia MGS Index eased marginally to 984.459 points as Eurozone yields inched higher. European leaders failed to agree on a deal to solve Europe’s debt crisis during the weekend’s summit. Further talks will now be held on Wednesday as European leaders continued to discuss the extent of a haircut on Greek debt and the recapitalisation of European banks.