MSE Weekly Round-Up Report: 26th — 30th November 2007

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Eight equities close in negative territory

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The local bourse dropped by 0.8% during a week in which eight of the twelve active equities closed in negative territory. Middlesea Insurance and GlobalCapital shares were in fact the only shares to advance, while the worst weekly performers were Malta International Airport and GO. The Malta Stock Exchange Index closed thirty-nine points lower than the previous week at 4,807.09 points.

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A total of 287 deals were registered on the stock exchange for a turnover of Lm2.48 million. In the equity market, 186 deals were executed for a traded value of Lm536,451, while 91 transactions were performed in local corporate bonds and government stocks for a turnover close to Lm572,869. In addition, 9 deals were executed in Treasury Bills for a value of Lm1.37 million.

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The local banking sector suffered a decline across the board as all equities closed in negative terrain. HSBC Bank Malta shares dropped marginally, by 0.25%, to end the week at Lm1.96 on a volume of 33,127 shares which were transacted across thirty-four deals. The equity’s weekly high and low prices registered were Lm1.97 and Lm1.93 respectively. The other major local bank, Bank of Valletta, shed 0.50% to close the week at the Lm3.55 level as 77,791 shares changed hands across seventy-five deals. During the week the equity also hit a Lm3.50 low, while the highest price traded at was Lm3.57.

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Within the same sector, FIMBank and Lombard Bank dropped by 1.1% and 2% respectively. FIMBank had 2,400 shares transacted over two deals to close at US$1.73, while Lombard Bank traded a mere 312 deals across three transactions to close at the Lm5.00 level. Following the closure of Friday’s session, Lombard issued a company announcement in which the Directors confirmed that the Bank continues with the satisfactory profit and balance sheet trends which were reported in the half-yearly results of this financial year. It was also noted that the solvency as well as liquidity ratios remained well in excess of regulatory requirement.

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Malta International Airport was however the worst equity performer of the week declining by 3.5% or 4c9 to close at Lm1.35. This was attained on a volume of 8,752 shares which were traded across eight deals. Negative sentiment also hit GO shares as they dropped by 3% to Lm1.299 on a volume of 9,836 shares which were transacted across nineteen trades. This put the latter’s equity price nearly 13% lower year-to-date.

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International Hotel Investments edged 1% lower to close back at the EUR1.00 level on a rather strong volume; 73,525 shares being transacted across eleven deals. Moreover, Simonds Farsons Cisk lost 1c or 0.9% to end the week at Lm1.10 on a single transaction of 750 shares, even though on Wednesday the company announced that during the first nine months of the financial year, the Group registered increased turnover levels (over the corresponding period last year) especially in its brewing, production and sale of branded beers and beverages segment.

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On the other hand, Middlesea Insurance gained 1.2% to close at Lm1.68 as 2,598 shares changed hands across five deals, while GlobalCapital shares advanced 0.8% to Lm1.795 on a rather strong volume of 62,500 shares which were negotiated across ten transactions.

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The only two equities to trade and close unchanged on a week-on-week basis were Medserv and 6PM Holdings shares. Medserv closed unchanged at Lm1.75 even though it was traded at a low of Lm1.736, while 6PM shares closed at Lm0.73 on a volume of 1,300 shares only.

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In the local bond sector, seventeen Malta Government Stocks were traded for a total turnover of Lm485,051 with the 5.7% MGS 2012 accounting for more than half the turnover in the sector. Trading in local corporate bonds was lower (traded value Lm87,818) even though fourteen bonds were active during the week.

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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]