MSE Trading Report for week ending 4th July 2008

Large caps fall and small caps gain in value.

The Malta Stock Exchange Index (MSE) closed at 4195.241 points, losing 1.83% on the week and now just over 15% on the year. The positive run seems to have ended very quickly as the large caps lost ground again this week. The MSE index lost 13.55% in the first six months of 2008. During the week, thirteen equities were negotiated, with seven equities closing in negative territory, six in positive territory whilst the rest remained stable.  During the week, Crimsonwing was the best performer whilst Go plc lost most ground.

A total of one hundred and seventy five trades were registered on the stock exchange for a turnover of over EUR 11.34 million.  In the equity market eighty nine deals were executed for a value of EUR 291,851 whilst in the corporate bond market twenty four deals for a total value of EUR 196,093 were carried out. In the government bond market forty six trades were executed for a total value of over EUR 8.8 million.  In Treasury Bills market fourteen deals were executed for a total value of over EUR 2.02 million.

In the banking sector, the share price of HSBC Bank Malta plc had a very negative week after having had a very positive run the previous week. Infact, the equity closed at Euro 3.80 falling by 2.54% on a turnover of only 9,183 shares traded over fifteen deals. Likewise, the share price of Bank of Valletta plc also fell by 2.21%, as 16,058 shares changed hands over fifteen deals. BOV closed the week at Euro 4.87. Lombard Bank plc also lost ground falling 1.67% and closed at Euro 2.95. Turnover was very small with only three deals and 2,200 shares changing hands.

FIMBank plc experienced a small positive increase in its share price which closed the week at USD 1.89, up 0.53% on the week.

International Hotel Investments plc saw its share price decrease by 1.32%, thus giving up some of last weeks gains. Seven deals were traded in IHI with a volume of 17,524. MaltaPost plc also gave up some of last weeks gains as the share price fell by 3.61%, as it closed at EUR0.80, with 22,689 shares changing hands over twelve deals.  Malta International Airport plc closed the week at Euro 3.11, down 0.32% over five deals and a turnover of 6,600 shares. 

GO plc saw its share price decrease by 3.85% to EUR 2.50 on seventeen deals for a total volume of 19,440. The share price of Grand Harbour Marina plc  gained 0.24% recovering some of last weeks losses and closed at Euro 2.05 as 7250 shares changed hands in two deals.

RS2 Software plc which traded for the first time yesterday week had a positive week and gained 1.87% and closed at Euro 0.815 on three deals totalling 2500 shares. Crimsonwing plc also had a good week and was the best performer gaining 1.89% on the week, closing at Euro 0.54. Turnover was also the highest at 24,138 and spread over four deals. Simonds Farsons Cisk plc traded twice during the week, with 5,050 shares changing hands. The closing price was Euro2.76, up 1.43% on the week. Plaza Centres traded twice this week on a turnover of 5,300 and closed at Euro 1.73, up 0.29%.

Next week, United Finance p.l.c. is offering investors in Malta €10 million 6.75 per cent Bonds due 2014-2016 having a nominal value of €100 each (the “Bonds”). The Bonds will, unless previously purchased and cancelled, be redeemed at any date between 30 June 2014 and 30 June 2016, as the Issuer may determine, on giving not less than sixty (60) days notice (subject to “Terms and Conditions of the Bonds”). Interest on the Bonds will become due and payable annually in arrears on 30 June at the rate of 6.75 per cent per annum. In the event that during the Offer Period the Issuer receives applications for Bonds in excess of the first €10 million Bonds, the Issuer has the option to increase the Bonds in issue to an aggregate amount of €12 million (the “Over-allotment Option”).

The net proceeds from the Bonds shall be used by the Issuer principally to re-finance the redemption of the LM4,000,000 (€9,317,494) 6.75% Bond issued on 13 September 2000, which bond issue is due for redemption in full on 31 October 2008.

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].