MSE Trading Report for week ending 2nd May 2008

Simonds Farsons Cisk registers profits of €4 million

This week the Malta Stock Exchange Index closed at 4,493.970 points, a loss of 0.20% over the previous week.  Since the beginning of the year the Index lost almost 9.00%.  During the week, fourteen equities were negotiated, with two equities closing in positive territory, seven in negative territory and five remaining stable.  During the week Grand Harbour Marina plc was the best performer whilst 6pm Holdings plc suffered the greatest loss.

A total of one hundred sixty five deals were registered on the stock exchange for a turnover of over EUR6.2 million.  In the equity market ninety-three deals were executed for a total value of EUR296,796, whilst in the corporate bond market twenty-nine deals for a total value of EUR569,317 were carried out.  In the government bond market thirty-three deals were executed for a total value of EUR772,353.  Ten deals were executed in Treasury Bills for a total value of EUR4,654,848.

During the week, in the banking sector, Bank of Valletta plc and Lombard Bank plc were stable.  The share price of Bank of Valletta plc remained at the EUR5.19 level, whilst that of Lombard Bank plc remained at EUR13.00.  On Tuesday 29th April 2008, the Board of Directors approved the Group and Bank Interim Unaudited Financial Statements for the six months ended 31st March 2008.  An interim dividend of EUR0.135 gross per share (€0.0878 net of tax) has been declared.  This will be paid on the 28th May 2008 to those Members appearing on the Bank’s Register of Members as at the close of business on Friday 9th May 2008. The Bank of Valletta Group recorded a net profit before taxation of €25million for the period compared to a profit of €56.6 million in 2007.The results were influenced by a number of factors, but in particular by the impact of markdowns in the value of the Bank’s Financial Markets and Investment portfolio as a result of the extended disruption in the global financial markets since July 2007. Despite the fall in profits the share price of BOV held firm during the week.

On the other hand HSBC Bank Malta plc and FIMBank plc lost ground respectively.  The share price of HSBC Bank Malta plc dropped by 0.24% to EUR4.19 as 12,768 shares changed hands on fifteen transactions.  The share price of FIMBank plc lost 0.52% to US$1.91 as 7,850 shares changed hands on four transactions.

The share price of Middlesea Insurance plc increased by 0.88% to EUR3.43 as 1,572 shares changed hands on three transactions, following last weeks announcement of good results by MSI. The share price of Grand Harbour Marina plc increased by 2.22% on five transactions during which 4,300 shares changed hands.

Although Simonds Farsons Cisk plc, International Hotel Investments plc and MaltaPost plc were active during the week their respective prices remained stable over those of the previous week.  After close of trading Simonds Farsons Cisk plc reported a strong rise in profitability for the year ended 31st January 2008, and the directors declared a net final dividend of EUR0.053 per share.  The Board approved a revaluation surplus of Eur55.5 million with the surplus of EUR44.4 million credited to reserves resulting in a net asset value per share of EUR3.24. The Group’s turnover increased by 6.2%, whilst the gross profit before tax amounted to €4million compared to €2.25million last year. The year was characterised by an increase in sales of all business activities due to an improved economic climate and an improved tourist second; and a profit on sale of surplus land and buildings as a result of the relocation of distribution activities to the logistics centre.

The share price of GO plc dropped by 0.17% from EUR3.000 to EUR2.995 on fourteen transactions for a total value of EUR64,305.  The share price of Plaza plc dropped by 0.29% to EUR1.720 on one transaction of 500 shares.  The share price of Malta International Airport plc dropped by 2.37% to EUR3.30 on five transactions for a total volume of 3,225 shares.  On Wednesday shares of MIA turned ex-dividend.  A final net dividend of EUR0.058 per share will be paid to shareholders by the 26 May 2008.  The share price of 6pm Holdings dropped by 3.85% to EUR0.75 on a single deal of 8,000 shares.  Crimsonwing plc suffered a drop of 2.48% in their share price and closed at EUR0.551 on a single deal of 2,500 shares.

This article which was complied 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 JMFS at 67/3, South Street, Valletta or on Tel: 21224410 or email [email protected].