Weekly Round-Up — 10th — 14th March 2008

– 

Lombard Bank’s profits increase by 18.1%

– 

The Malta Stock Exchange Index shed 0.2% to close a few points lower on a week-on-week basis at 4,659.12. The three local large caps, HSBC Bank Malta (HSBC), Bank of Valletta (BOV) and GO, all closed in negative territory together with FIMBank’s and 6PM’s shares. Gains in the shares of Lombard Bank (Lombard), Maltapost, Malta International Airport (MIA) and Simonds Farsons Cisk however limited the losses suffered by the local bourse.

– 

A total of two hundred sixty eight deals were registered on the stock exchange for a turnover above EUR19.5 million. In the equity market two hundred and four deals were executed for a traded value of nearly EUR7.02 million, while fifty-five transactions were performed in local corporate bonds and government stocks for a turnover just above EUR9.71 million. In addition, nine deals were executed in Treasury Bills for EUR2.8 million.

– 

In the banking sector, Lombard was the top performer gaining 1.5% or EUR0.20 to close at EUR13.20. Activity was high in the equity as 462,260 shares changed hands across twenty-eight deals. Following the closure of Thursday’s trading session the Board of Directors of Lombard issued the Preliminary Statement of annual results for the financial year ended 31st December 2007. The profits before tax registered for the year increased by 18.1% to Lm3.87 million (EUR9.01) over the previous year. It was also noted in the statements that net interest income rose by 26.7% driven by growth of 23.9% in credit activity. Net fees and commissions also increased by 5.3% following growth in general volumes of business, while total operating income rose by 34.1%.

– 

Lombard’s Board are also proposing a final Gross Dividend of EUR0.40 (Lm0.1717) per nominal EUR0.582343 (Lm0.25), this representing a 37% increase over last year’s dividend. Alternatively, shareholders are being given the option to receive the dividend by either cash or by the issue of new shares at an attribution price of EUR12.60.

–

Within the same sector, HSBC had 24,820 shares swap hands across twenty-one deals to shed 0.3% and close at EUR4.39, whilst BOV traded nearly 58,000 over forty-nine transactions to edge 0.2% lower and close at EUR5.74. Moreover, FIMBank declined by 15% and ended the week at US$1.73, however this was a result of the shares falling ex-dividend and due to the one for five bonus share issue to be allotted to shareholders who were on the MSE register as at 13th March 2008.

– 

GO had over 41,000 shares transacted across seventeen deals to close at its weekly lowest price of EUR3.00 after having been also traded at EUR3.145, this representing a 4.5% drop.  6PM’s shares also closed in negative terrain, having declined by 4% to GBP0.70 on a volume of 9,114 shares which were negotiated over four deals.

–

On the other hand, Maltapost had 78,755 shares traded across nineteen transactions to advance 1.6% and close at EUR0.711, whilst Crimsonwing gained 2% to reach the EUR0.55 level on a volume 38,145 shares. MIA was amongst the positive equity performers of the week, rising by 1% to EUR3.325 as 10,375 shares changed hands across eleven deals. Moreover, Simonds Farsons Cisk’s shares added 2% to reach EUR2.50, even though this was attained on a single deal of 2,000 shares. In addition, International Hotel Investments edged 0.4% higher to close the week at EUR1.039 on a volume of 17,000 shares.

–

A marginal increase of 0.06% was also registered in Plaza Centres’ shares which closed at EUR1.70 on a volume of 10,230 shares. Meanwhile, the Board of Directors announced that it is scheduled to meet on 28th March 2008 to consider and approve the financial statements as at 31.12.07 and to recommend to the shareholders the payment of a final dividend.

– 

The two remaining active equities both closed unchanged, Datatrak had a single deal executed at EUR0.305, while Grand Harbour Marina traded 28,346 across seven deals to close at EUR1.73.

–

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]