Local Weekly Round up – 22nd to 28th June 2005

Malta Stock Exchange – Weekly Round Up   For the period 22nd June 2005 to 28th June, 2005   By Jesmond Mizzi Chairman –Jesmond Mizzi Financial Services     The MSE index up 2.23%   HSBC trades at all time high on Lm5.00       The Malta Stock Exchange index increased by 2.23% over the last five trading days and is now 10.88% up since the beginning of the year as we approach the end of the first six months of trading in 2005.   The total equity volume for the period under review was 236,509 nominal shares which exchanged hands in a total of 159 transactions.   HSBC traded at an all time high of LM5.00 (LM10 pre shares split) on Friday but closed at LM4.98 yesterday. The share price was up 19cents in the last five trading sessions, and is now up 23.89% since the beginning of the year. The appetite for HSBC shares seems to be growing as we approach the announcement of the half yearly results, normally towards the end of July. In total 61844 shares changed hands over this period under review.   Bank of Valletta plc share price increase by 10cents1mil and a total of 54847 shares changed hands with a total of 52 transactions over the last five trading days.   Suncrest was however the best performer of the week as the share price rose by 5cents2mils or 17.33% since last Tuesday. The total shares traded were 6300 spread on three deals.   FIM Bank shares traded over the period amounted to 46,400 on four deals with the price increasing by 9mils.   The price of Middlesea Insurance recovered to close at Lm3.30 and was up 10cents over five deals totalling 3000. Middlesea is up 32% this year and is the best performer of 2005.   Lombard Bank also had a good week as the share price increased by 25 cents to close at LM5.40 on Tuesday. The share price of Lombard is up 27% since the beginning of the year and is the second best performer this year.   Maltacom lost one cent to close at LM1.34 yesterday with a total of 16 deals and 22637 shares changing hands. Simonds Farsons Cisk also lost one cent as 4040 shares changed hands on six deals.   During the last five trading sessions there were no deals in the Global Financial Services Group and Plaza Centres, while there was no movement in the prices of Malta International Airport, Datatrak and International Hotel Investments.   Trading in the bond market consisted of 119 trades of a total volume of over 645,500 nominal.  There were also 32 deals in Corporate Bonds with a volume of 106,500 and 87 deals in Malta Government Stocks with a total nominal value of 539,000. Bonds remained in demand as the prices continue to increase.   Company Announcements   FIMBank p.l.c   Quote   FIMBank p.l.c. (or the “Company”) makes reference to the company announcement of 4 May 2005 which referred to the ratification by its Board of Directors of a Mandate Letter signed on 7 April 2005 with International Finance Corporation, a member organization of the World Bank Group headquartered in Washington D.C., U.S.A. and established by Articles of Association among its member countries (“IFC”).   In terms of the Mandate Letter, IFC was authorized to perform services for the appraisal of a proposed project (“Proposed Project”) consisting of a proposed IFC investment in the Company by way of (i) a subordinated long term convertible loan in an amount up to ten million United States Dollars (US$10 million) (the “Proposed Loan”) to be utilised by the Company to expand its operations by establishing up to five joint-venture factoring and forfaiting companies in IFC member countries; and (ii) a participation by the Company in IFC’s global trade facility for an amount up to five million United States Dollars (US$5 million).   Any IFC investment in the Company and the Proposed Project were contingent upon certain conditions obtaining, namely (i) the Republic of Malta becoming a member of IFC, (ii) the Company and the Proposed Project meeting IFC’s financing criteria, (iii) the overall financial plan being acceptable to IFC; (iv) the approval of the Proposed Project by the management and board of IFC and (v) the negotiation and execution of the project, financing and other related documentation, in form and substance being satisfactory to IFC.   It is hereby announced that   (i)            all of the above conditions now having been satisfied, and (ii)           the necessary regulatory approvals required in terms of applicable Maltese laws having been obtained from the competent authorities,   FIMBank p.l.c. and IFC have today concluded their negotiations for the Proposed Loan and signed the relevant Subordinated Convertible Loan Agreement (the “Agreement”).   The Agreement, which will enable the loan to qualify as Tier II Capital of FIMBank p.l.c., paves the way for the setting up of a network of specialized trade finance institutions in a number of countries, such as Argentina, Brazil, China, Russia and the Dubai, UAE.    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.