Sustained high volumes across MGS

Trading volumes in the Malta Government Stock market remained high with another €9.4 million (nominal) exchanged today. The most actively traded stocks were the 4.6% MGs 2020 and the 5% MGS 2021. The Rizzo Farrugia MGS Index eased lower for the second consecutive. Eurozone yields regained the 2.15% level forcing the Index to ease by 0.2% to 990.200 points.

Meanwhile shallow trading activity still characterises the local equity market as just over €68,000 worth of shares traded today. The MSE Share Index shed a further 0.8% during this morning’s session to a new 23-month low of 3,078.578 points. On the other hand, most European stockmarkets are recovering for the second successive day after dropping to 2-year lows.

HSBC Bank Malta plc declined by 1.1% to a fresh 22-month low of €2.67 on volumes of 7,600 shares. Similarly, Bank of Valletta plc retreated by another 1.7% to €2.506 across thirteen trades totalling over 17,800 shares.

GO plc also closed in negative territory today as the equity slipped 1.9% lower to the €1.235 level while International Hotel Investments plc maintained the €0.73 level. Last Friday the IHI Group reported a widening loss for the first six months of 2011 to €10.8 million as the lower revenue from the Corinthia Tripoli Hotel offset the improvements registered in the other properties owned by the Group.

This afternoon, Lombard Bank Malta plc published their 2011 interim results revealing a 3.6% increase in pre-tax profits to €7 million as the 11.3% drop in net interest income to €7.25 million and the rise in costs (due to higher labour costs and increased investment in IT) were offset by a €1.1 million gain from the disposal of non-trading financial instruments and by a €0.46 million reduction in net impairments on loans.

Meanwhile 6pm Holdings plc, RS2 Software plc and MIDI plc are all scheduled to publish their respective half-year results on 29 August. Medserv plc and Grand Harbour Marina plc will follow on the 30 August whilst GO plc has just announced that its Board of Directors is scheduled to meet on 31 August.