HSBC and Lombard share price recover.

During the week the Malta Stock Exchange Index lost 0.76% and closed at 4,226.601 points.  Since the beginning of the year the Index slid by 14.41%.  This week, thirteen equities were negotiated, with four equities closing in positive territory, six in negative territory and three remaining stable.   Lombard Bank Malta plc was the best performer with an increase of 2.50% to Eur3.075 in its share price, whilst Crimsonwing plc lost most territory with a drop of 7.41% to Eur0.50, its original IPO price.

A total of two hundred fifty deals were registered on the stock exchange for a turnover of over Eur4.5 million.  In the equity market one hundred ninety one transactions were carried out for a total value of over Eur1.9 million.  In the corporate bond market twenty-nine transactions for a total value of Eur163,525 were executed.  In the government bond market twenty transactions were executed for a value over Eur1.2 million.  Ten transactions were carried out in Treasury Bills for a value of over Eur1.2 million.

On Monday International Hotel Investments p.l.c. (IHI) and OAO VAO Intourist (Intourist) of Russia issued an announcement of an agreement to jointly develop and invest in hotels in the four and five star categories across the Russian Federation.  Through this agreement which will come into force once regulatory and other procedures are completed, IHI and Intourist have agreed to join forces and establish an equally-owned investment fund, initially capitalised with US$100,000,000, to originate, develop and invest in four and five star hotels in major cities across the Russian Federation, including Moscow.  Intourist, forms part of the London-listed Sistema JSFC, one of Russia’s leading conglomerates with investments worldwide, principally in the technology sectors.  Over the previous week the share price of International Hotel Investments plc dropped by 1.11% from Eur1.085 to Eur1.073 as 27,862 shares changed hands across ten deals.

In the banking sector whilst the share price of HSBC Bank Malta plc remained stable at Eur3.80 even though the price fell to Euro 3.70 during the week but recovered by Friday. In total sixty deals were executed on a turnover of over sixty seven thousand shares. Bank of Valletta plc fell by a further 2.10% as it closed at Eur4.749.  Forty one deals were executed during which 33,507 shares changed hands.  The share price of FIMBank plc increased by 0.48% from $1.88 to $1.889.  This on eleven transactions during which 907,139 shares changed hands for a total value of over Eur1 million.

The share price of Plaza Centres plc appreciated by 0.29% to Eur1.725 as 11,195 shares changed hands across three transactions.  The share price of Malta International Airport plc increased by 0.13% to Eur3.115 as 11,840 shares changed hands across eleven deals.

Middlesea Insurance plc remained stable at Eur3.43 despite 56,463 shares changing hands across six deals. Middlesea Insurance plc is being traded without the entitlement to the dividend of €0.1281 per share. This dividend is expected to be approved during the Annual General Meeting scheduled for the 25th June.  Although active during the week the share price of Simonds Farsons Cisk plc also remained stable as it closed at Eur2.71 on two deals for a total of 5,000 shares.

The share price of GO plc dropped by 2.14% to Eur2.74 as 16,809 shares changed hands across fourteen transactions.  GlobalCapital plc slid by 3.39% to Eur2.85  as four transactions were executed during which 1,920 shares changed hands.  The share price of MaltaPost plc slid by 1.18% to Eur0.751 as 25,350 shares changed hands across fifteen transactions.  This despite the publication of the interim results of the Company last week showing a 157% rise in pre-tax profits. 

As the applications for the Malta Government Stocks closed yesterday, local investors will next week turn their attention on the new Initial Public Offering of RS2 Software plc, with the pre-placement of shares opening on 5th June 2008 and the offer to the public opening on 9th June 2008. RS2 Software is a global provider of card payment solutions, IT consultancy and related services to international and domestic banks, service providers, retailers and other financial organisations. Potential investors should seek professional advice and a copy of the prospectus to obtain more information on the issue.

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].