New Bond issues next week

MSE Weekly Round-Up Report: 8th — 12th October 2007

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New Bond issues next week

The local bourse edged 0.2% lower during a week which saw only five equities register share price movements on a week-on-week basis. Simonds Farsons Cisk and 6PM Holdings’ shares were positive performers, while Middlesea Insurance, Bank of Valletta and Maltacom shares closed in negative territory. This caused the Malta Stock Exchange Index to close 10 points lower at the level of 4,828.51.

A total of 186 deals were registered on the local bourse for a turnover above Lm2.8 million. In the equity market, 98 deals were executed for a traded value of Lm234,651, while 82 transactions were performed in local corporate bonds and government stocks for a turnover of Lm1.02 million. In addition, six deals were executed in Treasury Bills for a value of Lm1.5 million.

The top equity performer of the week was 6PM Holdings which moved 1c or 1.4% higher in the last session of the week to close at Lm0.71. Trading in the equity was however low with 2,740 shares changing hands across five deals. Simonds Farsons Cisk gained nearly 1% to close at Lm1.08. This was attained over a volume of 13,050 shares which were transacted across six deals.

Turning onto the banking sector, HSBC Bank Malta, Lombard Bank and FIMBank were active however did not register any share price changes on a weekly basis. HSBC had 18,555 shares change hands across 30 deals to close at Lm1.90 even though it was also traded a weekly low of Lm1.91. Lombard Bank had a mere 811 shares transacted over two deals at the stable price of Lm4.75. Volume traded was high in FIMBank with nearly 167,000 shares being transacted across thirteen deals, all of which were executed at US$1.95.

On the other hand, Bank of Valletta was the only equity in the banking sector to close in the red following its marginal decline of 0.6% or 2c. The equity closed the week at Lm3.58 as 18,143 shares changed hands across twenty-five deals. On Friday 26th October the Board of Directors will be announcing the bank’s financial results for the year ending 30th September 2007

Middlesea Insurance suffered the largest weekly drop, declining 3% or 5c to close at the Lm3.60 level. This was however attained on thin activity with 4,100 shares being transacted over six deals. Maltacom also ended in negative territory even though it only shed 0c2 or 0.1% to close at Lm1.387 on a volume just below 3,400 shares.

The remaining active equities all closed unchanged. International Hotel Investment registered a single deal of 200 shares to close at EUR1.05, while Malta International Airport recorded a deal of 500 shares to close stable at Lm1.35. Moreover, Plaza Centres had 600 shares traded at Lm0.74.

In the local corporate bond sector, the total turnover amounted to Lm88,359, while that in Malta Government Stocks totalled Lm937,240. On Thursday, the pre-placement of PAVI Shopping Complex p.l.c. 7% Secured Bonds 2014 — 2017 was held and the pre-placement amount available (Lm2.5 million) for allotment was over-subscribed within a few hours. On Monday 15th October, the opening for the other half of the subscription (Lm2.5 million) will be available to the general public.

Meanwhile, the Government of Malta will also be issuing on 15th October two government stocks (Fungibility issues). The 5% stock which matures in 2021 is being issued at Lm98.50 (per Lm100 nominal), while the 5.7% stock which matures in 2012 is being offered at and Lm103.85 (per Lm100 nominal). The gross redemption yield of such stocks are equivalent to 5.15% and 4.82% respectively.

This article which was compiled by Jesmond Mizzi Financial Services Limited (JMFS) does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information please contact JFMS at 67/3 South Street Valletta or on tel:  21224410 or email [email protected]