Declines in BOV & IHI push market lower

The MSE Share Index slid back below the 3,400 point level during this morning’s session on the Borza as two of the large caps, Bank of Valletta plc and International Hotel Investments plc, traded lower.

BOV declined by 0.3% to €3.22 on low volumes of 1,870 shares while IHI failed to hold on to yesterday’s increase as its share price dropped 1.2% to the €0.83 level. Volumes in IHI were also low amounting to only 1,250 shares.

Meanwhile 10,440 HSBC Bank Malta plc shares traded at the €2.84 level, again unchanged from the previous close. In contrast to the rally in global stockmarkets (especially in banking equities), a muted reaction to the details of the Basel III banking capital rules was registered in the local equity market which is still characterised by subdued trading activity.

The share price of Malta International Airport plc edged 0.7% higher to €1.56 on volumes of over 21,800 shares while the equity of Grand Harbour Marina plc was active for the first time in over a month. The share price of GHM maintained the €1.96 level on 3 trades totalling 15,000 shares after opening 2% lower at €1.92. At the time of the publication of the Half-Year Report on 27 August, GHM revealed that it has been selected as one of the shortlisted bidders for the acquisition of the Mandraki Marina in Rhodes, Greece.

On the corporate bond market, the most notable increase was registered in the US Dollar tranche of the 7% FIMBank plc bond. The price of this bond surged by 200 basis points to an all-time high of 106%. Meanwhile, Malta Government Stock prices partially recovered from the declines in the past two sessions. This morning the Central Bank of Malta Stockbroker increased its indicative prices of the 10-year and 20-year paper by 39 and 58 basis points respectively.

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