During the latter stages of today’s trading session, the share price of GO plc tumbled by 9.9% to €1.00 on low volumes of 1,950 shares. Today’s decline places GO as the worst performer of the week followed by MIDI plc with a decline of 6.1% and Plaza Centres plc with a 3.5% loss. Yesterday, the Greek telecoms company Forthnet announced that an extraordinary meeting is scheduled for 3 August to discuss a €30 million increase in the share capital as well as a reverse share split.
The decline in GO’s equity coupled with smaller drops in the share prices of FIMBank plc and Island Hotels Group Holdings plc forced the MSE Share Index to retreat by 0.37% today to 3,041.316 points. The decline registered this morning trimmed the weekly gain in the Index to 0.17% mainly as a result of the 2.3% rise in the share price of HSBC Bank Malta plc.
HSBC’s equity held on to the gains registered in the previous two sessions as a further 5,000 shares traded at €2.67. The share price advanced by 2.3% this week in anticipation of the publication of the half-year financial statements on Friday 27 July and the declaration of an interim dividend.
After dropping to a 36-week low of €2.04 yesterday, the share price of Bank of Valletta plc edged 0.7% higher today to end the week minimally higher at €2.055.
The subscription period for the new equity issue of Malita Investments plc will open on Monday 23 July. The company is issuing a total of 20,000,000 new ‘B’ shares for general public subscription at the nominal value of €0.50. Malita Investments will have a market capitalisation of €69 million representing a 2.5% weighting in the MSE Share Index.
On the local bond market, the Rizzo Farrugia MGS Index advanced marginally higher to 991.935 points as the Central Bank of Malta once again revised the MGS bid prices upwards. The movement in the Rizzo Farrugia MGS Index reflected this morning drop in the Eurozone yields to 1.219% as investors sought the ‘safer’ German bund. This morning, Moody’s downgraded Italy’s credit rating by two notches to Baa2 due to the country’s susceptibility to potential events such as a Greek exit from the euro zone or Spain requiring additional financial aid. Italy’s 10-year bond yield rose past the 6% level on the news which is perceived to be unsustainable in the long run. Despite the downgrade, Italy managed to successfully issue €3.5 billion of new 3-year bonds at an average yield of 4.65% which is lower than the 5.3% level at a similar auction last month. The successful bond auction helped Italy’s 10-year bonds to ease back below the 6% level.