MSE Trading Report weekly round-up for the week ending 1st August 2008.

August 1, 2008

BOV announce “a marked improvement in profitability”.

The Malta Stock Exchange Index (MSE) closed at 3,933.865 points, losing 5.38 per cent on the week and now over 20 per cent year to date. During the week, eleven equities were negotiated, with five equities closing in negative territory, just two in positive territory, whilst the rest remained unchanged. During the week, FIMBank plc was the best performer whilst HSBC Bank Malta plc lost most ground.

A total of two hundred and seventy two trades were registered on the stock exchange for a turnover of over EUR 9.95 million, including put-through trades for a value of EUR 13,784. In the equity market one hundred and seventy four deals were executed for a value of EUR 585,437, whilst in the corporate bond market twenty nine deals were carried out for a total value of EUR 327,540. In the government bond market, forty five deals were executed for a total value of over EUR 6.12 million. In the Treasury Bills market eighteen deals were executed for a total value of over EUR 2.89 million.

In the banking sector, the share price of HSBC Bank Malta plc lost most ground during the week after the announcement of the results for the first six months of 2008. The equity closed at EUR 3.25, falling by EUR 0.55, or 14.47%, on a turnover of 87,327 shares traded over ninety eight deals. HSBC now fell by just over 33 per cent from the beginning of year. During the week the equity traded at a high of Euro 3.70 and a low of Euro 3.25.On Thursday the share price closed in positive territory but fell again on Friday. On the other hand, the share price of FIMBank plc gained 0.53 per cent from last week, as it closed at USD 1.885, as 56,821 shares traded over ten deals. Bank of Valletta plc experienced a decrease in its share price, closing the week at EUR 4.50, therefore decreasing by 2.60 per cent on the week, or by EUR 0.12, on a turnover of 27,224 shares traded over thirty one deals. In a company announcement this week, Bank of Valletta has reported a marked improvement in profitability during the third quarter of the Company’s financial year, when compared( on a pro rata basis) with the financial results for the first six months through to 31st March 2008. The Board of Directors are expecting that the results for the second half of the current financial year will show a significant improvement over those reported in the first half, subject to the volatility in the equity markets not spreading to the fixed income sector. The Board added that overall, conditions prevailing in the banking sector, both domestically and internationally remain extremely challenging.

Grand Harbour Marina plc was the only other gainer of the week. The equity closed at EUR 2.30, therefore experiencing a 0.22 per cent rise on the week, as 10,000 shares changed hands over just one deal, with a turnover of EUR 23,000.

MaltaPost plc registered a loss in its share price of 2.60 per cent, closing the week at EUR 0.75, with 4,000 shares changing hands on three deals. GlobalCapital plc also lost some of its share price during the week. The closing price was EUR 2.444, EUR 0.056 less than last week, with just 1,000 shares changing hands on three deals. Another equity which lost some of its share price was Plaza Centres plc as the equity closed the week at EUR 1.70, 1.73 per cent less than last week. Plaza traded once as 1,000 shares changed hands.

International Hotel Investments plc maintained last week’s share price of EUR 1.06, with 22,671 shares changing hands over eleven deals. On the other hand, Middlesea Insurance plc traded just 405 shares over two deals. The equity closed at EUR 3.34, therefore maintaining last week’s closing price. GO plc also retained last week’s share price, as it closed the week at EUR 2.51, as 15,520 shares changed hands over thirteen deals. Crimsonwing plc registered last week’s share price. The equity closed at EUR 0.53, as 10,000 shares changed hands over just one deal. During the week Crimsonwing p.l.c. issued the preliminary results for the financial year to 31 March 2008. The financial results report a positive performance for the company with an increase of 35% in revenue to Euro9,552,567. The net profit before income tax for the year was Euro909,324, a strong performance considering a loss of Euro375,513 the company suffered in the last quarter because of the decline in Sterling when compared to the Euro. The announcement reports an increase of 62% to Shareholders’ funds to Euro3,972,009, with a year performance showing an overall return on shareholders’ funds of 20.4%. In the past year Crimsonwing has continued to invest in new markets, such as North America, Germany, Austria and Switzerland.

During the week, the Treasury has announced the prices for the upcoming issue of Malta Government Stocks. The 5.1% MGS 2014 (III) F.I. is going to be issued at Euro 99.45 with a yield to maturity of 5.21% whereas the 5% MGS 2021 (I) F.I. is going to be issued at Euro 97.20 with a yield to maturity of 5.30%. Applications open at 8.30am on Monday 4th August 2008 and close on Wednesday 6th August 2008 at 5pm.

The Mediterranean Investments Holding p.l.c. bond issue closed on Monday 28th July 2008, a few hours after the opening of subscriptions.

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