Local market kicks-off with a 1% increase

MSE Report: 4th January 2008

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Local market kicks-off with a 1% increase

The new year and the adoption of the euro as the official local currency brought about some positive sentiment to the Malta Stock Exchange Index as it gained just above 1.00% to close at 4,988.70 points, in the first and only trading session of the year. The two large local caps, Bank of Valletta and HSBC Bank Malta, both closed in positive territory, while GO was the only equity to close in the red. The two only other active equities, FIMBank and Malta International Airport, were also amongst the positive performers.

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A total of 84 deals were registered on the stock exchange for a turnover above €1.87 million. In the equity market 59 deals were executed for a traded value of €294,210, while 20 transactions were performed in local corporate bonds and government stocks for a turnover of €104,486. In addition, 5 deals were executed in Treasury Bills for a value of €1.47 million.

HSBC Bank Malta was the most actively traded equity having 34,556 shares change hands across twenty-three deals. Its share price advanced 2.2% or €0.101 to close at €4.76 and be the session’s top equity performer. This was the highest level reached during the day while the lowest price traded at was €4.661. Bank of Valletta gained 0.8% to close at €8.214 as 12,863 shares were transacted over twenty-four deals. Also within the banking sector, FIMBank had a total of 3,000 shares negotiated over two deals to move 1.5% higher and close at US$1.77.

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Moreover, Malta International Airport saw its share price rise 1.5% or €0.046 to close the session and week at €3.261. This was attained over two deals totalling 2,000 shares which were both done at this same price.

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On the other hand, GO shares shed 0.12% or €0.004 to close at €3.141 as 5,399 shares changed hands across eight transactions. The session’s high and low prices registered in the equity were €3.143 and €3.00 respectively.

Meanwhile, with effect from Monday, 7th January 2008 trading is expected to commence in Crimsonwing’s shares at an opening price of €0.50.

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Turning to the local bonds market, the traded value in corporate bonds reached €55,761, while that in Malta Government Stocks was quite low at €48,724, as few price movements were recorded in such bonds and MGSs.

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Readers should note that with regard to the local equities, the respective prices were adjusted to reflect euro changeover while in the case of local bonds and government stocks the nominal holdings were adjusted.

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On a separate note, Moody’s Investors Service raised the foreign and local currency credit ratings for Malta following the inclusion in the euro zone on 1st January, thus lifting the rating up one notch from ‘A2’ to ‘A1’.

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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]