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Local Weekly Round Up: 24th November — 1st December 2006

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The MSE Index edged slightly higher on a week-on-week basis. It registered a 0.39% increase to close at 4,905.807. Twelve equities were active, five of which registered gains while four recorded loses. 392 deals were placed in the equity market for a value of Lm1,087,034 while 88 deals were placed in the bond market for a value of Lm1,576,345.

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BOV was the top equity performer of the week as it gained 2.83%. In the first two sessions of the week BOV recouped part of the previous week’s losses. On Monday it gained 3c5 and on Tuesday another 6c5 to reach the Lm3.60 level. On Wednesday activity was low in BOV shares and the price remain unchanged. A marginal decrease of 0c1 was registered in the following session and it remained trading at the same level on Friday to close the week at Lm3.599.

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Following last week’s weekly gain of 4.17%, Lombard continued performing strongly this week as its share price increased by 2.40%. It gained 10c in the first session of the week and another 2c on Tuesday to close the session and week at Lm5.12.

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Middlesea Insurance registered a weekly gain of 1.94%. Trading in this equity was only registered in Wednesday’s session as 1,244 shares changed hands across three deals. The equity increased by 6c to close the session and week at Lm2.10.

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Medserv was also among the positive performers of the week as it registered a 1.50% increase. The equity gained 2c on Monday across one deal of 50,000 shares and traded another 3,000 shares on Wednesday across three deals to remain at the same level and closed the week at Lm1.35.

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Activity in Malta International Airport plc was low during the first four sessions of the week. One single trade of 150 shares on Wednesday was registered as the equity gained 0c5 and closed at Lm1.34. Following Thursday’s announcement of the company’s interim results, the equity managed to gain another 3c in Friday’s session to close the week at Lm1.37; a weekly gain of 2.62%.

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As can be noted from the interim financial statements for the period ending 30th September 2006, the profit before tax amounted to Lm4.13 million in contrast to the Lm4.21 million it made for the same period last year. A decline equivalent to approximately 1.90%. The major factors that contributed to this decline were, the fact that the company’s turnover decreased slightly from Lm10,272,439 to Lm10,227,873 despite a 5.3% decrease in passengers over the same period last year. At the same time, operating costs increased by 2.7%, this due to increases in cost of utilities, insurance and staff training carried out in the period under review. Notwithstanding this, following the successful negotiation of the company’s bank facilities, interest costs for the period under review decreased by Lm100,082.

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Moreover, MIA plc also announced that it is proposing a net interim dividend of Lm0.025 per share on all shares settled as at close of business on Wednesday 6th December 2006. Please click here to view the official announcement.

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On the other hand, HSBC ended the week in negative territory with a decline of 1%.The price of the equity fluctuated throughout the whole week. Its share price edged slightly higher by 0c1 on Monday, to lose this same gain in the following session and close back at Lm2.01. On Wednesday it dropped by 1c and recouped this loss in the following session and close at Lm2.01. On Friday the equity lost ground and dropped 2c to close off the week at Lm1.99.

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Maltacom was active in all sessions to end in negative territory on a week-on-week basis with the price shedding 0.33%. The equity commenced the week with a drop of 0c5 and continued the downward trend on Tuesday as it lost a further 0c9. On Wednesday it rallied to recover such losses as it gained 1c9 to close at the Lm1.50 level. It lost 0c1 on Thursday still to remain above the level it had closed in the previous week, however Friday’s 0c9 loss pushed the equity in negative grounds.

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Datatrak was active only on Friday as it traded 32,700 shares across 12 deals. The equity closed in negative territory on a weekly basis as it lost 2c9 in the last session of the week; a decline of 10.03%.

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GlobalCapital slumped by 8.30% as it lost 19c from the previous Friday’s closing to end this week at the Lm2.10 level. This was achieved across 5 trades which saw 1,660 shares change hands.

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IHI was also active during the week and traded 48,120 shares across 12 transactions. The share price however remained stable at Eur1.00 throughout the whole week, to close unchanged on a weekly basis.

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Simonds Farsons Cisk was only active in one session as it traded 3,278 shares at the same level it closed in the previous week; that of Lm0.80 to close stable on a weekly basis.

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FIMBank also registered three trades during the week to remain stable at the US$1.70 level.

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On Monday, the Central Bank of Malta announced that it left the central intervention rate unchanged at 3.75%. The decision was taken by the Governor at the end of the     Monetary Policy Advisory Council meeting held that same morning. The Monetary Policy Advisory Council is due to meet again on 28 December 2006.

To view further details please click here.-In the mean time, the Board of Directors of Suncrest Hotels plc issued an announcement on Friday morning. They refer to the offer by AX Investments plc, a subsidiary of AX Holdings Ltd, for the issue of Lm4 million 6.7% Bonds 2014-16, and notify that it has applied to the Listing Authority to request that trading in 8.25% Suncrest Bonds 2005-2007 be suspended while the bondholders consider the option offered to them to convert their holdings to the new offer.

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AX Investments plc is writing to each Suncrest bondholder to inform them of the option to convert their holdings to the new offer being made by AX Investments plc, and giving them preference in the allocation of new bonds.

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The Listing Authority has approved the request to suspend trading of the Bonds in question to ensure the orderly transaction of business. The suspension will commence from the moment the offer to existing bondholders is made and until the offer remains open.

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