MSE Weekly Round-Up Report: 5th — 9th November 2007

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Middlesea shares in positive territory

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Activity on the Malta Stock Exchange was much lower than the previous week, with the two large local banks, Bank of Valletta (BOV) and HSBC Bank Malta (HSBC), accounting for the majority of the trades. Nonetheless, Middlesea Insurance was the only equity to close in positive territory, while five others closed in the red and two other equities closed stable on a week-on-week basis. The MSE Index closed the week 1% lower at 4,886.57 points.    

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A total of 243 deals were registered on the local bourse for a turnover just above Lm1.03 million. In the equity market, 147 deals were executed for a traded value of Lm238,665, while 92 transactions were performed in local corporate bonds and government stocks for a turnover of Lm617,265. In addition, four deals were executed in Treasury Bills for a value of Lm174,763.

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In the banking sector, BOV had 24,218 shares change hands across 49 deals to close at Lm3.584. This was equivalent to a 2.6% drop over last week’s closing price with the weekly high and low prices registered being Lm3.61 and Lm3.55 respectively. One must however note that on Monday BOV shares started trading ex-dividend.

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The other major local bank, HSBC, also closed in negative territory however the decline was marginal. The equity lost 0.5% or 1c to close at Lm1.97 on a volume of 51,298 shares which were transacted over fifty-eight deals. The weekly high and low prices registered in this share were Lm1.984 and Lm1.95.

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Within the banking sector, Lombard Bank was the worst performer on the week suffering a 3.4% drop. Its share price closed 18c9 lower at the Lm5.30 level however this was attained on a single transaction of a mere 200 shares. FIMBank was also active and closed in negative terrain even though it edged just 0.06% lower to close at US$1.799. This resulted over a volume of 10,595 shares which were traded across six deals. On Friday, FIMBank announced that it published the Prospectus dated 1st November 2007 in respect of an offer to shareholders of the Company to subscribe to 22,894,699 new ordinary shares of a nominal value of US$0.50 in accordance to the ratio: 5 new shares for every 19 existing at an offer price of US$1.10 per share. The Rights issue will be opened to eligible shareholders from Monday 19th to Friday 30th November 2007.

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The equity to record the largest weekly drop was Grand Harbour Marina which saw its share price slump by 4% or 3c1 to end the week at Lm0.749, on a deal of 5,000 shares. In addition, Maltacom lost 1.4% to terminate the week at Lm1.38 on a volume of 6,348 shares which were transacted across twelve deals.

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Middlesea Insurance was the sole equity to advance into positive territory on a weekly basis. Trading was thin with below 2,700 shares changing hands across seven deals and the share price moving 0.6% higher to close at Lm1.57. During the week, Middlesea issued a company statement in which Mr Mario Grech, Executive Chairman, commented on the year-to-date return that “The positive results registered by the group have been affected by movements in local and foreign capital markets. That will continue to present a challenge during the financial year. Nonetheless, we remain focused to meet these challenges and to seek further growth opportunities in the local and foreign markets. The financial position of the Middlesea Group has remained very sound.”

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The remaining two active equities both closed unchanged on a weekly basis. Simonds Farsons Cisk shares had 18,731 shares transacted across six deals to close again at Lm1.10, while Malta International Airport had 4,400 shares change hands to close at the Lm1.40 level.

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During the week the Board of Directors of San Tumas Holdings plc announced that they resolved to distribute, out of tax exempt profits, an interim dividend of 2 cents per share on all Ordinary Shares of 25 cents each to shareholders on the Register on Monday 19th November 2007.

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With regard to the local bond market, a total of thirty-nine deals were executed in corporate bonds for a turnover of Lm107,018. Moreover, the majority of Malta Government Stocks were all active during the week, most of which kept on registering price increases.

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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]