Share prices of BOV and MIA recover

Trading on the local equity market resumed this morning following yesterday’s public holiday. Following Tuesday’s declines in Bank of Valletta plc and Malta International Airport plc, both equities closed higher today.

BOV’s share price edged 0.75% higher to €2.70 with activity easing to under 7,000 shares. Today is the final day for shareholders of the La Valette Multi-Manager Property Fund to reply to the Bank’s buy-back offer of €0.75 per share. The market will eagerly anticipate announcements from BOV in the coming days on the take-up of this offer.

Meanwhile, after closing below €1.70 for the first time since mid-May, MIA’s equity regained this level on fresh demand of 14,000 shares this morning. In the past couple of days, the union representing Air Malta pilots claimed that it is looking into the possibility of challenging the monopoly of Malta International Airport over the country’s only runway. The union is also threatening industrial action which would ground all Air Malta flights for a full day on July 15. On its part, MIA issued a press release on Sunday categorically denying the claims being made by the same union regarding the company’s alleged responsibility for the current situation of Air Malta.

Today marks the end of the second quarter of the year. During the past three months, the equity market shed 3.9% on declining volumes. The only positive performers on the MSE were RS2 Software plc and Middlesea Insurance plc.

On the bond market, the Rizzo Farrugia MGS Index slipped 0.25% lower today as yields increased following the vote taken yesterday by the Greek parliament in favour of the austerity measures. The bid price quoted by the Central Bank of Malta in the 19-year paper declined by a further 41 basis points to 100.69%. However the secondary market price held on to the level of 101.50% on sustained demand in the market.