The strong upturn in the share price of Bank of Valletta plc proved to be short-lived as the equity closed the day 5.3% lower. At the start of today’s session, the share price initially held on to yesterday’s closing level of €2.75 but failed to maintain this level as additional offers entered the market as the session progressed. The equity dropped back to a close of €2.605 on total volumes amounting to 36,245 shares. Yesterday evening the Bank announced that it will not be extending the deadline of its offer relating to the La Valette Multi-Manager Property Fund beyond 30 June as initially suggested by the Chairman of the Malta Financial Services Authority. BOV is offering €0.75 per share to all investors in the fund.
The sharp decline in BOV’s equity wiped out the recent gains in the equity market with the MSE Share Index shedding 1.6% to a new 6-week low of 3,311.197 points.
The prevailing subdued investor sentiment across the equity market also forced other share prices to close lower. HSBC Bank Malta plc dropped a further 0.3% to close at the €2.91 level on continued low volumes of 1,449 shares.
GO plc’s share price eased a further 1.5% lower to the €1.34 level across two trades totalling 5,000 shares. Meanwhile, the share price of Forthnet has recovered strongly in the past few days and is currently 38% above its recent all-time low of €0.29.
Simonds Farsons Cisk plc saw its share price slip 2.9% lower back to the €1.70 level on volumes of 1,307 shares. The company is scheduled to hold its Annual General Meeting tomorrow afternoon. During the meeting shareholders will be asked to approve a number of resolutions including the January 2011 annual financial statements and the final dividend. Farsons will also hold an extraordinary meeting to update its Memorandum and Articles of Associations in line with recent changes to the Companies Act and the Listing Rules.
The share price of Malta International Airport plc also close in negative territory with a 2.3% drop back to the €1.70 level on a single deal of 1,000 shares despite outstanding bids in the market at the €1.73 level. Meanwhile International Hotel Investments plc traded unchanged at the €0.82 level across two trades amounting to over 13,000 shares.
On the bond market, the main highlight relates to yesterday’s announcement by Mediterranean Bank plc with respect to its recent bond issue of €5 million 6.25% Bonds 2015 placed through two financial intermediaries. Mediterranean Bank explained that the amounts subscribed for exceeded €5 million and therefore applications received from the two intermediaries were scaled down proportionately.