Malita share issue oversubscribed

The new share issue of Malita Investments plc was closed earlier on this afternoon due to oversubscription. Malita will be exercising the over-allotment option of the additional 10 million shares and as such it will issuing and listing 30,000,000 new ‘B’ shares. The Company will be publishing the allocation policy by 2 August in accordance with the Prospectus dated 2 July 2012.

Meanwhile shallow trading activity was evidenced across the secondary market with the MSE Share Index easing 0.1% lower to 3,126.626 points. The share price of Malta International Airport plc retreated by 1% to €1.77 as the equity turned ex-dividend as from today. The net interim dividend of €0.03 per share will now be paid on 10 September.

GO plc also closed in negative territory with a 1% drop back to the €1.05 level across two small deals totalling 1,096 shares. Meanwhile, 4,296 Bank of Valletta plc shares traded today at the €2.09 level, unchanged from the previous close.

On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 993.308 points as Eurozone yields slid back to the 1.23% level this morning. However, later on in the day, benchmark German bund yields surged to a 2-week high of 1.34% after the European Central Bank’s President Mario Draghi stated that the ECB will do whatever is necessary to save the euro. This statement also eased some of the concerns over Spain and Italy with Spanish 10-year yields dropping back to the 7% level whilst Italy’s borrowing costs eased closer to the 6% level. Mr Draghi’s statement also lifted the euro which regained the USD1.23 level against the US Dollar. Similarly, equity markets rallied with the FTSE 100 currently 1.3% higher and the German DAX up 1.7%.