MSE Trading Report weekly round-up for the week ending 22nd August 2008

FIMBank plc announces USD 23.81 million profit after tax

The Malta Stock Exchange Index (MSE) closed at 3,823.902 points, gaining 0.43 per cent on the week, following last week’s gain of 1.1%. This week, eleven equities were negotiated, with two equities closing in negative territory, three in positive territory and six other equities remaining unchanged. During the week, Bank of Valletta plc was the best performer, whilst Crimsonwing plc lost most ground.

A total of three hundred and forty five trades were registered on the stock exchange, with a total turnover of over EUR 27.87 million, including put-through trades of EUR 761,895.  In the equity market one hundred twenty seven deals were executed for a total value of EUR 798,503. In the government bond market seventy two deals were carried out, for a value of over EUR 22.79 million, whilst in the corporate bond market, thirty one deals were executed for a total value of EUR 494,303. In the Treasury Bills market, twelve deals were executed for a total value of over EUR 3.027 million.

In the banking sector, Bank of Valletta plc was also the best performer during the week within the sector. The equity closed at EUR 4.30, rising by 3.61 per cent, and therefore recovering from last week’s losses. BOV traded 53,755 shares over forty deals. On the other hand, the share price of Lombard Bank plc remained stable, closing the week at EUR 2.899, with 7,763 shares changing hands on six deals. HSBC Bank Malta plc registered a fall of 1.21 per cent. The closing price for the week was EUR 3.112, a fall of EUR 0.038 from last week, with 28,994 shares traded over twenty one deals. On Friday , the share price of HSBC Bank Malta gained EUR 0.101. FIMBank plc experienced a rise of 2.86% in its share price, as it closed the week at USD 1.94, therefore rising by USD 0.054, on a turnover of 185,374 shares traded over twenty one deals, for a total value of EUR 236,108

On Friday morning, FIMBank plc announced its Interim Financial Statements for the half year ended 30 June 2008. The FIMBank Group posted a profit after tax of USD 23.81 million, a significant increase over the USD 3.46 million registered for the same period in 2007. The disposal of shares in Global Trade Finance Ltd in March 2008 contributed to a consolidated profit on disposal of USD 29.15 million. Group Net Interest Income increased by 42% to USD 7.0 million, whilst Group Net Operating Income grew from USD 12.22 million to USD 47.30 million. Net Fee and Commission Income increased by 64% to USD 10.05 million, being largely the result of improved performance both at the Bank and London Forfaiting Company Ltd. The company also announced the payment of an extraordinary dividend of USD 4,397, 685 (i.e. USD 0.03290924 per ordinary share) by means of a scrip issue to Members on the Register at the Central Securities Depository of the Malta Stock Exchange as at the close of trading on 5 September 2008. All such Members will be entitled to receive the Circular to Members and supporting documentation, including but not limited to the scrip election form; and receive the scrip dividend, to be paid either in cash or by the issue of new shares at each Member’s option, as from Tuesday 29 September 2008. The Board of Directors also resolved that the attribution price for calculating the scrip dividend entitlement be established at USD 1.600 that is to say approximating a discount of 15% to the trade-weighted average price of the Company’s Equity Securities for the past quarter.

Crimsonwing plc was the only other loser during the week. The equity closed the week at EUR 0.50, thus losing almost 6 per cent on the week, or EUR 0.03. Crimsonwing traded 29,854 shares over six deals.

Plaza Centres plc retained its share price of EUR 1.70, with 54,717 shares changing hands over four deals. On the other hand, Malta International Airport plc traded only 4,215 shares on five deals. The equity closed at EUR 3.04, therefore maintaining its previous share price. Likewise, International Hotel Investments plc closed the week at its previous share price. The equity closed at EUR 1.05, as 35,235 shares changed hands over five deals. GO plc also retained its previous share price during the week, as it closed the week at EUR 2.35, with 9,760 shares changing hands on nine deals. Maltapost plc was the other equity which maintained its share price from last week. The closing price was EUR 0.75, with 6,199 shares traded over three deals.

RS2 Software plc was the only other equity which registered a rise in its share price. RS2 closed the week at EUR 0.83, EUR 0.01 higher than last week, with 44,000 shares changing hands on seven deals. This notwithstanding the positive results announced last week.

During the week, GlobalCapital plc announced that a meeting of the Board of Directors has been set for Thursday, 28 August 2008 to consider and approve the interim results of the Company as at 30 June 2008. 6pm Holdings plc also announced that the Board of Directors is scheduled to meet on 26 August, 2008 to consider and approve the Half-Yearly Financial Report for the period ended 30th June 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].