The MSE Equity Price Index trended lower for the third consecutive day on Tuesday as it eased by a further 0.11% to 4,804.095 points.
Overall, the declines in five equities – including BOV, HSBC and IHI – outweighed the gains in three companies whilst five other shares traded unchanged. Trading volumes remained virtually flat at €0.4 million.
Bank of Valletta plc extended Monday's sharp drop of almost 4% by a further 0.9% to the €1.14 level after partially recovering from a near ten-year low of €1.10 (-4.3%). A total of 117,791 shares changed hands today.
On Monday, BOV issued an announcement in relation to a media article published on Sunday in which it was indicated the bank is now under increased regulatory scrutiny over issues that require reform.
In this respect, BOV explained that it has already submitted plans aimed at addressing all of the issues raised by the regulators. The Bank added that it is fully committed to this programme and, in fact, it has already engaged the services of experienced global consultants that will assist it in conducting the required changes.
Meanwhile, BOV announced the allocation policy in respect of the newly issued 3.75% subordinated bonds maturing between 2026 and 2031. The bank explained that the majority of applicants will receive full allocation and that the new bonds are expected to be admitted to listing on Tuesday 9 July whilst trading is expected to commence on Wednesday 10 July.
HSBC Bank Malta plc moved back to its 2019 low of €1.60 (-0.6%) across 8,340 shares.
Also among the large companies, International Hotel Investments plc slipped by 1.2% back to the €0.85 level on activity totalling 20,694 shares.
MaltaPost plc eased by 0.7% to the €1.48 level across 10,000 shares.
A single deal of just 5,690 shares forced the equity of Malita Investments plc to finish 1.7% lower at the €0.865 level.
In contrast, Malta Properties Company plc (€0.66), Plaza Centres plc (€1.00) and Trident Estates plc (€1.92) all traded unchanged on light trading volumes.
GO pc maintained its two-month high of €4.58 on activity totalling 6,085 shares.
No movement was recorded in the share price of Malta International Airport plc which held on to the €7.20 level across 2,490 shares.
Meanwhile, RS2 Software plc continued to advance as it added a further 1.9% to a near two-year high of €1.62 across 29,941 shares. Last Friday, RS2 announced the appointment of Mr Jens Mahlke as Group CFO. Prior to joining RS2, Mr Mahlke used to serve as the COO and the CFO of Concardis GmbH – a leading payment service provider in Germany, Austria and Switzerland.
BMIT Technologies plc surged by 2.8% to recapture the €0.55 level across 87,900 shares.
The other positive performing equity today was MIDI plc with a gain of 1.6% to the €0.65 level on activity totalling 60,200 shares.
On Monday, PG plc announced that the company’s Board of Directors resolved to distribute a net interim dividend of €0.0259259 per share, representing a 9.8% increase over the corresponding interim dividend of €0.023611 per share which was paid out in September 2018 for the 2017/18 financial year.
Shareholders of PG as at close of trading on 4 July 2019 will be entitled to receive the dividend which is payable on 16 July 2019. Coupled with the interim dividend of €0.015741 per share which was paid out by PG in December 2018, the total net dividend per share for the 2018/19 financial year which closed on 30 April 2019 amounts to €0.0416669 per share, representing a near 6% uplift to the total net dividend per share of €0.039352 for the previous financial year. The equity of PG remained inactive today.
The RF MGS Index extended its rally as it climbed to 1,144.814 points – a new high since the start of 2017 – as euro bond yields remained under downward pressure amid fading optimism on the resumption of trade negotiations between the US and China.
Meanwhile, the European Commission is on Tuesday expected to decide on whether to recommend disciplinary proceedings against Italy for failing to comply with the bloc’s fiscal rules.