Government bonds traded reach Euro 13.8 million

This week the Malta Stock Exchange Index closed at 3,307.94 points, at a loss of 0.28% over last week.  Since the beginning of the year the Index has now lost 33.01%.  During the week, seven equities were negotiated, with one equity closing in negative territory, two closing in positive territory and four remaining stable. Shares of Fimbank plc lost most territory as its share price dropped by 6.74% to $1.30 while Maltapost plc gained most territory with an appreciation of 5.26% and closing at Eur0.80.

A total of 190 deals were registered on the stock exchange for a turnover of over Eur18.3 million.  In the equity market 58 transactions were carried out for a total value of Eur179,340.  In the corporate bond market 44 transactions for a total value of Eur806,569 were executed. While in the government bond market 69 transactions were executed for a value over Eur13.8 million.  Eighteen transactions were carried out in the Treasury Bills market for a value of over Eur3.4 million.  The fixed income market was very active once again as investors anticipated interest rate cuts. 

Infact on Thursday, the Governing Council of the European Central Bond decided that the interest rate on the main refinancing operations of the Eurosystem will be decreased by 75 basis points to 2.50%, starting from the operation to be settled on 10 December 2008, the interest rate on the marginal lending facility will be decreased by 75 basis points to 3.00%, with effect from 10 December 2008 and the interest rate on the deposit facility will be decreased by 75 basis points to 2.00%, with effect from 10 December 2008. This largest reduction even in interest rates was taken as  Jean Claude Trichet, ECB president, warned that “we see global economic weakness and very sluggish demand persisting in the next few quarters”.

Back to the local market, once again the two large banks remain the most active in the equity market.  During this week Bank of Valletta plc remained stable as it closed Friday’s session at Eur3.62.  Twenty-three deals were executed during which 22,780 shares were negotiated for a total value of Eur82,318.

The share price of HSBC Bank Malta plc increased by 0.31% to Eur2.899 as 9,729 shares changed hands across 17 deals for a total value of Eur28,210.

As mentioned above the share price of Fimbank plc lost 6.74% as 16,200 shares changed hands across six deals for a total value of Eur16,695.

During this week Go plc was active only on Monday when its share price remained stable at Eur1.90 on a single deal of 5,000 shares.

On Thursday Santumas was traded for the first time since October, 27.  A single trade of 3,000 shares left the share price unchanged at Eur3.10. The Company held its Annual General Meeting last Friday when all resolutions were approved.  Dr. Rene Frendo Randon, chairman of the Company explained that the Company is well structured and very liquid following the sale of a large parcel of land for Eur3.2 million net of final withholding tax. The Company’s interim results for the half year ending October, 30, 2008 are due to be issued by December, 31, 2008.

The share price of Malta International Airport plc remained stable at Eur2.24 when just 770 shares were negotiated across two deals.  On Friday Malta International Airport plc published the traffic results for November, 2008. It was stated that there was a decline of 7.9% from 101,559 passengers in November, 2007 to 93,549 passengers in November 2008.  During the first eleven months of this year, passenger departures rose by 5.32%, that is, an increase of 75,076 passengers.

As mentioned above the share price of Maltapost plc appreciated by 5.26% as 39,602 shares were negotiated across eight deals.

This article which was compiled 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 contact JMFS at 67/3, South Street, Valletta or on Tel: 21224410 or email [email protected].