The MSE Equity Price Index eased by 0.09% to 3,554.282 points on Monday as declines in the share prices of Lombard and MIDI outweighed gains in MIA and Loqus.
Lombard Bank Malta plc moved 0.9% lower to the €1.08 level on a single deal of 200 shares.
Last Friday, Lombard issued a clarification in relation to the outcome of the Extraordinary General Meeting which was held on 10 November 2022. In this respect, Lombard explained that immediately upon the conclusion of the EGM, the bank received a letter from the National Development & Social Fund, the contents of which were reflected in a media release also issued by the NDSF on the same date, seeking to provide context as to the manner in which the NDSF voted during the EGM.
While noting the contents of these communications, Lombard reiterated its belief that the approval of the EGM Resolution allowing it to proceed with a rights issue remainedthe most appropriate means of raising capital for the bank, in the best interests of the bank and all its stakeholders. This was also highlighted by the bank’s chairman during his address to the EGM.
The objective of the rights issue is to increase the bank’s capital by some €50 million which would enable Lombard to ensure compliance going forward with applicable regulatory capital requirements as well as enable further growth of the bank in line with its revised strategy. In light of media reports, Lombard also noted that contrary to what was suggested in such media reports, the bank was not, prior to the EGM, ever in receipt of a letter from the NDSF informing the bank of its objection to a new share issue nor of its intention to object to the resolution and/or the eventual Rights Issue.
Lombard concluded by explaining that it is currently evaluating its position so as to determine the way forward, always in adherence with all applicable laws, rules and regulations and in the best interests of the bank and all its stakeholders. As a result, further announcements will be made in due course as and when necessary.
A single deal of 5,000 shares pulled the share price of MIDI plc 11.3% lower to a 7-year low of €0.25 level.
Malta International Airport plc moved 0.9% higher to recapture the €5.75 level albeit on just 170 shares.
Loqus Holdings plc regained the €0.19 level (+22.6%) on 3,000 shares.
The RF MGS Index fell by 0.45% to 902.992 points as eurozone sovereign bond yields trended higher amid concerns that the current protests taking place in China will negatively impact the global economy.