BOV announce profits of Euro 40 Million despite worldwide financial turmoil.
This week the Malta Stock Exchange Index closed at 3361.767 points, at a loss of 1.40% over last week. Since the beginning of the year the Index has now lost 31.92%. During the week, eleven equities were negotiated, with eight equities closing in negative territory, one closing in positive territory and two remaining stable. Shares of Malta International Airport plc lost most territory as they dropped by 7.27% to Eur2.55 whilst shares of Santumas Shareholding plc gained most during this week with an increase of 3.33% to Eur3.10.
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A total of one hundred ninety four deals were registered on the stock exchange for a turnover of over Eur10.2 million. In the equity market hundred transactions were carried out for a total value of Eur361,993. In the corporate bond market thirty-six transactions for a total value of Eur294,579 were carried out. Whilst in the government bond market thirty-four transactions were executed for a value over Eur1.4 million. Twenty-three transactions were carried out in the Treasury Bills market for a value of over Eur8 million.
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During this week the banking sector was dominated by the issue of the full year financial results of Bank of Valletta plc. On Friday 31 October 2008, the Board of Directors of Bank of Valletta plc approved the September 2008 full-year results and recommended a final gross dividend of €0.0675 per share (net dividend per share of €0.0439) to all shareholders on the register of members as at close of trading on Wednesday 5 November. The shares will trade ex-dividend as from Thursday 6 November while the dividend will be paid on 18 December 2008, if approved at the Annual General Meeting. The Board is also recommending an increase in the nominal and paid up value of the ordinary shares (from €0.75 to €1.00 per share) as well as a bonus issue of 1 share for every 5 shares held. Shareholders as at close of trading on Monday 12 January 2009 will be entitled to this bonus share issue. During the financial year which ended 30 September 2008, the BOV Group generated a pre-tax profit of €40.6 million, which is 60% lower than that of last year. This was mainly due to the unrealised fair value markdowns totalling €41 million, of which €14 million arose in the last two weeks of the financial year. This besides a direct charge on Lehman Brothers investments held by the Group of Euro 12.7 million following their failure in mid September 2008. As the market awaited these results the share price of Bank of Valletta plc remained stable this week at Eur3.40 even though 43,548 shares changed hands across forty-three deals. The equity on Friday traded at a low of Euro 3.35 but recover to Euro3.40.
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Likewise the share price of HSBC Bank Malta plc remained stable at Eur2.90 as 31,219 shares changed hands across thirty transactions, having traded at Euro 3.85 on Friday. On the negative side the share price of Lombard Bank Malta plc dropped slightly by 0.03% to Eur2.947 as 15,400 shares changed hands across four deals. In an Interim Directors’ Statement issued by Lombard Bank Malta plc, the Directors stated that they are satisfied with the performance of the Bank and its subsidiaries. The Lombard Group remains well positioned to achieve its projections for the financial year ending 31st December 2008. FIMBank plc saw its share price decrease by 1.25% to $1.58 on a single deal of just 1,750 shares.
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This week the share price of Middlesea Insurance plc fell by Euro 0.05 to low of Eur2.70 on six deals for a total volume of just 853 shares. The share price of Grand Harbour Marina plc dropped by 2.33% to Eur2.10 as 5,000 shares changed hands across two deals. The share price of GO plc dropped by 4.95% to Eur1.901, a multi-year low last reached in December 1998, as three deals were executed for a total volume of 4,135 shares. International Hotel Investments plc saw its share price decrease by 2.89% to Eur0.94 as 32,243 shares changed hands across four deals.
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The share price of RS2 Software Plc dropped by 2.60% to a low of Eur0.75 on a single deal of 2,000 shares. This, in spite of the announcement made recently of the deal signed between one of RS2’s existing service providers EDB and OK-Q8, Sweden’s largest chain of petrol stations. Furthermore there was a more recent announcement in relation to the signing of a 3 year comprehensive licence and service package agreement with Croatian postal bank Hrvatska Postanska Banka.
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On Wednesday Plaza Centres plc issued an Interim Directors’ Statement in which announced that the occupancy levels during the third quarter which ended on the 30th September 2008 remained high at 96.8%. It was also stated that the financial position of the company is satisfactory and in line with projections and exceptions. However the equity remained inactive during the week with a share price of Eur1.75.
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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].