Further support for GO’s equity

During this morning’s trading session on the Borza, the share price of GO plc moved a step closer towards regaining its 2012 high and reversing the 23.5% drop registered during the first four months of 2012. In fact, the equity of the quad play telecom operator edged 3.3% higher today to close at the €0.95 level – just €0.03 below its 2012 high. Moreover, GO’s equity has gained 35.7% from its all-time low of €0.70 reached on 14 May following a turnaround in investor sentiment possibly on the back of the Group’s plans, revealed during the 2012 Annual General Meeting, to extract value from its investment property portfolio valued at over €50 million.

In the banking sector, Bank of Valletta plc eased 1% lower to close at the €2.07 level across eight trades totalling 7,222 shares. Yesterday, the Bank announced that the MFSA concluded its third and last investigation with respect to the La Valette Property Fund. The MFSA will now be reviewing the investors’ individual files to assess whether the investors were eligible to invest in this fund. Those investors that were not eligible will be entitled to a compensation of €1 per share less any compensation already paid.

Meanwhile, HSBC Bank Malta plc edged 0.8% higher to regain the €2.50 level on a single deal of 4,000 shares. The only other active equity today was Middlesea Insurance plc with a single trade transacted at the €0.645 level representing no change from the previous close.

Overall the MSE Share Index rose 0.1% to a new 4-month high of 3,039.398 points.

On the bond market, the Rizzo Farrugia MGS Index inched marginally higher to 991.289 points as Eurozone yields dipped back below the 1.20% level. The downturn was triggered by comments from Spain’s Treasury minister who stated that the yields requested by markets to lend to the Spanish government meant that markets were shutting out the country. Spain is due for a bond auction next Thursday.

The morning, the Treasury announced the issue of 3 new Malta Government Stocks for a total aggregate amount of €120 million subject to an over-allotment option of up to a further €60 million. The 3 new stocks are: (i) 3.75% MGS 2017 (IV); (ii) 4.3% MGS 2022 (II) (Fungibility Issue); and (iii) 5.1% MGS 2029 (I). Prices of all 3 stocks will be determined on Thursday 14 June 2012. The General Public has the possibility of applying for these stocks in multiples of €100 and up to a maximum of €100,000 (nominal) per application and subscriptions open on Monday 18 June and close on Wednesday 20 June. For applications in excess of €100,000 (nominal), a tendering process applies and tenders in the form of sealed bids will be accepted until noon on Friday 22 June.