Weekly Round-Up — 28th January — 1st February 2008

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FIMBank shares advance 10%

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The Malta Stock Exchange Index declined 1.9% to 4,816.56 points during a week in which twelve equities were active, three of which closed in positive territory while five others closed in negative terrain. The two major local banks, HSBC Bank Malta and Bank of Valletta, were the equities to suffer the largest weekly decline, while FIMBank was this week’s top equity performer followed by Maltapost and Crimsonwing.

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A total of 580 deals were registered on the stock exchange for a turnover above €9.23 million. In the equity market 488 deals were executed for a traded value of nearly €1.4 million, while 86 transactions were performed in local corporate bonds and government stocks for a turnover just above the €7 million mark. In addition, 5 deals were executed in Treasury Bills for €717,601.

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On Tuesday afternoon FIMBank announced that the State Bank of India (SBI) intends to purchase the shareholding held by FIMBank, Malta (and two other foreign institutions) in Global Trade Finance Ltd. This helped the equity rise nearly 10% to the US$1.92 level during a week in which over 140,000 were transacted across thirty-six deals.

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Within thin the same sector, HSBC Bank Malta dropped 3.9% on a volume of 30,745 shares which changed hands across thirty-two deals. The equity closed at €4.66, well below it weekly high price traded at, of €4.839. Activity in Bank of Valletta shares was stronger with 38,314 shares being swapped across seventy-seven deals. However, its share price still declined by 3.7% over the week to close at €6.31. Moreover, Lombard Bank saw its share price shed 0.7% or 10c to close at the €13.50 level. This was however attained on a thin volume of 2,915 shares.

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Maltapost was the most actively traded equity, having registered 50% of the deals in the equity market during the week. Its shares kept increasing in price to reach the €0.655 level, equivalent to a 5.7% over the previous week as 550,456 shares were negotiated over 246 transactions. On Wednesday the company also announced that GasanMamo Insurance Ltd has on 25th January 2008 exceeded the threshold of 5% voting rights of Maltapost plc. Activity in Crimsonwing shares was also high with over 109,000 shares being traded across seventeen deals, pushing its share price 5.5% or 3c higher to €0.58. 

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On the other hand, Medserv dropped 2.6% on a weekly basis to close at €4.044 on thin volume. Grand Harbour Marina shares were also active and ended in negative territory as 9,600 shares changed hands across three deals to end 1% lower at €1.73.

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The four other active equities all closed unchanged on the week. GO had 65,145 shares traded across thirty deals to close at €3.03, during a week in which its weekly high and low prices traded at were €3.05 and €3.021 respectively. Early during the week GO announced that on 18th January 2008, together with its majority shareholder Emirates International Telecommunications (Malta) Limited (EITML), acquired the total issued share capital of Forgendo Limited a company registered in Cyprus. The share capital in Forgendo Ltd is split equally between GO plc and EITML.

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International Hotel Investments closed at the €1.00 level on a volume of 115,223 shares, while Malta International Airport closed at €3.20 on a volume of 8,330 shares. Furthermore, Simonds Farsons Cisk shares also ended the week unchanged at €2.40 as 2,100 shares were transacted over three deals.

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Turning onto the local bonds market, activity was once again strongest in Malta Government Stocks with the traded value amounting to over €4.87 million. Thirteen stocks were in fact traded, most of which registered price increases and with the 4.8% MGS 2016 once again accounting for the majority of the traded volume recorded on the exchange. With regard to the local corporate bonds sector, activity was also relatively high with twelve bonds being traded for a total turnover amounting to over €2.17 million.

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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]