Heightened activity in BOV

The MSE Equity Price Index erased some of yesterday’s gains as it slipped by 0.12% to 4,883.876 points. The drop was largely driven by negative performances of RS2, BOV and MIA. On the other hand, various other shares trended higher whilst BMIT and PG closed the day unchanged. Activity was centred around BOV as trading in this equity represented 60% of today’s volumes. Download today’s Equity Market Summary.

Bank of Valletta plc lost 1.6% back to the €1.24 level on activity totalling 173,258 shares having a market value of €0.22 million. Yesterday, BOV issued an announcement as well as a press release regarding the loss of its correspondent banking relationship. The bank explained that the decision of ING Group to terminate its relationship with BOV must be analysed in the context of recent trends and developments taking place across the European banking sector. BOV also added that it has stepped up its efforts to find alternative USD clearing arrangements and that it is pressing ahead with a transformation programme aimed at lowering its risk profile and strengthening its anti-financial crime structures, systems and policies.

Also among the large companies, RS2 Software plc shed 3.6% to the €1.35 level across 44,259 shares. This morning, RS2 held its AGM during which shareholders approved all resolutions placed on the agenda including a 1-for-8 bonus share issue. The bonus shares are expected to be admitted to listing tomorrow whilst trading in the new bonus shares is expected to commence on Thursday 20 June.

A single deal of just 275 shares forced the equity of Malta International Airport plc to retreat by 0.7% to €7.30.

Mapfre Middlesea plc extended yesterday’s sharp decline by a further 0.9% to the €2.10 level albeit on just 2,000 shares.

In contrast, International Hotel Investments plc continued to rally as the equity added 2.2% to a near eleven-year high of €0.92 on shallow trading activity. Shareholders as at close of trading on 26 June will be entitled to receive a net dividend of €0.02 per share.

HSBC Bank Malta plc regained the €1.63 level (+0.6%) across 3,717 shares.

Four property-related companies moved higher today. MIDI plc surged 3.3% to the €0.63 level on activity totalling 24,600 shares.

Plaza Centres plc and Malita Investments plc gained over 1% to €1.00 and €0.865 respectively on light trading activity.

Low volumes were also transacted in the equity of Malta Properties Company plc which ended 0.8% higher at the €0.635 level.

Meanwhile, BMIT Technologies plc traded unchanged at the €0.545 level across 19,000 shares.

Two deals totalling 16,300 shares left the equity of PG plc at the €1.58 level.

The RF MGS Index moved lower for the first time in five days as it slipped by 0.15% to 1,133.178 points. Prices of Malta Government Stocks erased some of their recent strong gains despite renewed downward pressure on eurozone sovereign yields after ECB President Mario Draghi suggested that the central bank is ready to slash interest rates deeper into negative territory and/or provide further asset purchases if inflation does not converge to its target of close to 2%. As a result, the benchmark 10-year and 20-year German Bund yields tumbled to new all-time lows of -0.326% and 0.061% respectively before partially recovering. Today, the Federal Open Market Committee of the US Federal Reserve will start its two-day monetary policy meeting during which investors are expecting the central bank to also indicate fresh signs of monetary support in the coming months.