MSE Trading Report weekly round-up for the week ending 25th July 2008

HSBC Bank Malta announces drop in profits.

The Malta Stock Exchange Index (MSE) closed at 4157.628 points, losing just 0.01% on the week and almost 16% on the year. During the week, eleven equities were negotiated, with six equities closing in positive territory, four in negative territory, whilst the rest remained unchanged.  During the week, Santumas Shareholdings plc was the best performer whilst 6pm Holdings plc lost most ground.

A total of two hundred and thirty five trades were registered on the stock exchange for a turnover of over EUR 10.86 million.  In the equity market one hundred and twenty eight deals were executed for a value of EUR 839,810, whilst in the government bond market seventy one deals were carried out for a total value of over EUR 7.12 million. In the corporate bond market, twenty two deals were executed for a total value of EUR 368,104. In the Treasury Bills market fourteen deals were executed for a total value of over EUR 2.54 million.

In the banking sector, the share price of Bank of Valletta plc lost some ground during the week.  The equity closed at EUR 4.62, falling by EUR 0.05, on a turnover of 57,890 shares traded over forty deals. During the week the equity traded at a high of Euro 4.68 and a low of Euro 4.60. On the other hand, the share price of FIMBank plc gained 0.32 % from last week, as it closed at USD 1.875, as 178,058 shares traded over eight deals. Lombard Bank plc continued to retain its share price of EUR 2.90, with 19,000 shares changing hands over six transactions.  HSBC Bank Malta plc experienced a decrease in its share price, closing the week at EUR 3.80, therefore decreasing by 0.26% on the week, on a turnover of 33,970 shares traded over twenty six deals. On Friday, HSBC Bank Malta plc announced their interim financial results for the six month period to 30 June 2008.The Group registered a profit before tax of EUR 46.6 million for the six months to June 2008. This figure translated into a decrease in profits of EUR 12.4 million or 21.1%. Last year’s profit before tax for the same period was EUR 59 million. The Board declared an interim gross dividend of 11.9 euro cents per share (7.7 euro cents net of tax). The Chief Executive Officer, Alan Richards, commented that although the results are disappointing, the overall profitability remains strong with a return on equity of 22.0 per cent.

6pm Holdings plc lost most ground during the week, as its share price decreased by 6.67% to EUR 0.70, EUR0.05 less than last week, on just one deal of 565 shares. MaltaPost plc lost 3.75% of its share price and closed at EUR 0.77 as 4,033 shares changed hands in two deals, losing EUR 0.03 on the week.

Santumas Shareholdings plc was the best performer of the week, as it saw its share price increase during the week by 3.43%, closing the week at EUR 2.65, with 4,400 shares changing hands over just one deal. Grand Harbour Marina plc saw its share price appreciate by 2% over the week, as it closed at EUR 2.295, with 6,000 shares changing hands over five deals. Malta International Airport plc (MIA) registered an increase of 1.93% in its share price. MIA closed at EUR 3.12 with a volume of 11,027 shares on fifteen deals. International Hotel Investments plc experienced an increase of EUR 0.011 in its share price, closing the week at EUR 1.06, with 29,683 shares changing hands over eleven deals. GO plc registered a 0.40% rise in its share price. GO closed the week at EUR 2.51, with 32,590 shares changing hands on thirteen deals, with a turnover of EUR 81,511.

During the week, the Treasury announced the issue of EUR 100 million Malta Government Stocks (MGS) subject to an over-allotment option of an additional sum of EUR 50 million, namely, 5.1% MGS 2014 (III) Fungibility Issue and 5% MGS 2021 (I) Fungibility Issue. The price for the stocks will be established three working days before the opening of applications. Potential investors will be able to apply as of 4 August 2008 for both issues.

Subscriptions for the Mediterranean Investments Holding p.l.c. (MIH) bond issue for €15 million bearing an interest rate of 7.5% per annum and maturing on 4 August 2015, will open on Monday 28 July 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]