Last Friday evening, the European Banking Authority (EBA) published the results relating to the stress tests carried out on 90 European Banks. Bank of Valletta plc (BOV) was again chosen to represent the Maltese banking sector. BOV issued an announcement last Friday explaining that BOV’s Tier 1 Ratio (an indicator of balance sheet strength), decreased marginally to 10.4% under the modelled adverse scenario placing BOV among the soundest EU banks. The BOV Board of Directors claimed that the result is a further external confirmation of the Bank’s strength and resilience. BOV’s share price reacted positively to this news although volumes were weak. The equity added 1.5% to regain the €2.70 level.
In a separate announcement, this morning BOV revealed that it would not be appealing against the administrative penalties imposed by the Malta Financial Services Authority (MFSA) on the Bank and its wholly owned subsidiary Valletta Fund Management (VFM) in relation to the La Valette Multi-Manager Property Fund. BOV also stated that the number of acceptances in the buy-back offer increased to 98% of the investors in the fund.
After 206,200 RS2 Software plc shares changed hands at the €0.53 level last week, increased demand helped the equity reach a fresh 8-month high during this morning’s session. The share price of RS2 advanced by 1.9% to the €0.54 level across three trades totalling 33,000 shares. Bids remain outstanding at the €0.53 level with few offers at the closing price.
The only other active equity, Simonds Farsons Cisk plc, closed unchanged at the €1.70 level on a single trade of 1,000 shares. However offers are already placed minimally lower at the €1.699 level.
On the bond market, Eurozone yields dropped back to the 2.65% level this morning as the EU-wide bank stress test results published last Friday failed to calm down concerns with respect to the region’s sovereign debt crisis. This downturn led the Central Bank of Malta Stockbroker to raise its Malta Government Stock bid prices. The highest increase of 43 basis points was registered in the 5.25% MGS 2030 (I) to 102.59% level. Overall, the Rizzo Farrugia MGS Index edged 0.2% higher to 981.753 points.