WEEKLY ROUND UP – 15th-22nd November 2004

Malta Stock Exchange – Weekly Round Up   Closing 15th November to 22nd November 2004     §               The Malta Stock Exchange Index remained flat over the week. §               Large capped stocks, Bank of Valletta, HSBC Bank Malta and Malta International Airport remain unchanged. §               Plaza Centres was the biggest gainer of the week (5.52%) §               International Hotels Investments and Maltacom plc shed some recent gains and closed the week marginally lower. §               Malta International Airport is to announce its interim dividend and financial statements on the 9th of December 2004.   The Malta Stock Exchange Index closed the week at 3023 points and remained flat over the week. Malta’s large capped stocks Bank of Valletta, HSBC Bank Malta and Malta International Airport remain unchanged whilst Maltacom lost just 0.3%. Smaller companies such as Simonds Farsons Cisk, Plaza Centres, Fimbank and Lombard all registered small gains. These market movements were not significant enough to provide the market with any trading direction. Overall, this week there were 7 shares that remained unchanged, 2 losers and 4 gainers.   Volumes in Bank of Valletta and HSBC Bank Malta fell this week compared to recent weeks. Just 5050 HSBC shares were traded this week over 15 deals whilst Bank of Valletta traded just 37,383 shares over 57 deals. Year to date gains in these equities remain strong with Bank of Valletta and HSBC gaining 77.55% and 43.14% respectively. Given the recent developments in the market amongst them privatisation, markets are positioning for 2005 which is just 5 weeks away.   This week Plaza Centres bounced back from recent lows closing the week at 0.65c a gain of 5.52%. Just one deal was closed were 15,000 shares were traded. Simonds Farsons Cisk maintained this year’s overall strong performance closing the week at Lm1.20c. This share has now achieved a total year to date return of 33%.   Maltacom shares lost 0.33% this week after 34,415 shares traded hand over 34 deals. The share price closed the week under review at Lm1.525c. Volumes in this particular share remain sustained.       On Tuesday 16 November the Treasury published the results of the recent Malta Government Stock issues.  Lm19 million 5.9% MGS 2009 (III) at minimum tender price of 107.80% (yield to maturity of 3.95% per annum) Total demand in the short-term paper amounted to Lm50.95 million. A total of 42 tenders were made for this bond. Only 19 tenders were accepted, with the highest bid at 109.20% (yield to maturity of 3.6% per annum) and the lowest accepted bid at 108.50% (yield to maturity of 3.77% per annum). Lm15.2 million of the successful tenders were by credit institutions with the balance mostly allotted to collective investment schemes. An analysis of the unsuccessful tenders (23 in total) reveals that there were bids for Lm18.3 million nominal by credit institutions, Lm12.5 million nominal by collective investment schemes, Lm1.05 million by insurance companies and Lm100,000 nominal by private individuals.   Lm10.5 million 5.1% MGS 2022 at par. Total demand for the 18-year paper reached Lm25.25 million. Since applications by the general public at par amounted to nearly Lm13 million, all the tenders at the auction stage were not considered. Moreover, due to the over-subscription at par, refund cheques on a pro-rata basis will be issued by the Treasury to all successful applicants.Notwithstanding the fact that no tenders for this stock were successful, the Treasury provided an analysis of the various bids. There were a total of 12 tenders for Lm12.25 million at a weighted average price of 97.6%, i.e. below par value. This translates into a weighted average yield of 5.3% per annum. There were 3 bids by credit institutions totalling Lm6 million nominal, 6 bids by collective investment schemes for Lm4.5 million nominal and 3 tenders by insurance companies for a value of Lm1.75 million.   Tuesday’s Trading Tuesday was a very quiet day for equities. Just three shares were traded throughout the session. These were Maltacom plc, Bank of Valletta and HSBC Bank Malta. The decline of HSBC and Maltacom forced the Malta Stock Exchange Index down 0.18%. HSBC Bank Malta lost 3c closing the session at Lm7.80c. Just one deal was struck totaling 225 shares. Volumes were considerably higher in Bank of Valletta where 12 deals were struck. 4781 shares were traded. Notwithstanding the number of trades, the share price remained unchanged. During the session 3 deals were closed for Maltacom shares which closed at Lm1.52c a fall of 0.33% 2563 shares were traded over just t3 deals.         This report was issued by the Research Unit of Jesmond Mizzi Financial Services Limited. For further information please call at our offices on 21224410 or email [email protected].  This article does not intend to give investment advice and the contents therein should not be construed as such. Readers are encouraged to seek professional advice regarding their personal financial situation. The value of investments can go down as well as up.  Past performance is no guarantee for future performance. Jesmond Mizzi Financial Services Limited is licensed to conduct investment services by the Malta Financial Services Authority.