MIA share price up 11.6%

This week the Malta Stock Exchange Index closed at 3,313.336 points, at a gain of 0.16% over last week.  Since the beginning of the year to date the Index has lost 32.90%.  During the week, seven equities were negotiated, with three equities closing in negative territory and four closing in positive territory. Shares of HSBC Bank Malta lost most territory as its share price dropped by 1.69% to Eur2.85 while Malta International Airport plc gained most territory with an appreciation of 11.61% and closing at Eur2.50.

A total of 152 deals were registered on the stock exchange for a turnover of over Eur5.2 million.  In the equity market 62 transactions were carried out for a total value of Eur217,101.  In the corporate bond market 31 transactions for a total value of Eur212,630 were executed. While in the government bond market 34 transactions were executed for a value of Eur650,708.  Twenty-four transactions were carried out in the Treasury Bills market for a value of over Eur4.1 million.    

Following last week’s European Central Bank cut of a 75 basis point in interest rates to 2.5%, on Tuesday, all but one traded Malta Government Bonds declined.  On the contrary the 5% MGS 2021 gained 258 basis points and closed at 107.21%.  In the corporate bond market the 4.60% HSBC 2017 gained 100 basis points and closed at par, while the Globalcapital bond traded at €75.00.  On Thursday, corporate bond prices and government stocks moved higher.  Following the ECB’s decision to lower its refinancing rate both Bank of Valletta plc and HSBC Bank Malta plc revised their interest rates.  On Friday, while Malta Government bonds closed higher as eurozone yields continue to decline, prices of traded corporate bonds were practically unchanged.

On Friday MIDI p.l.c. announced they had issued a Prospectus relating to a Eur30 million bond issue available in euro and sterling. The new bonds which carry a coupon of 7% per annum will mature in 2016-2018.  The Company reserves the right to increase the amount up to an equivalent of Eur10 million.

In the banking sector the share price of Bank of Valletta plc dropped by 0.83% and closed at Eur3.59 as 17,837 shares changed hands across 29 deals. Bank of Valletta plc will be holding its Annual General Meeting on December17, 2008 when shareholders will be asked to approve a number of resolutions including the payment of a final dividend of Eur0.0675 per share and a 1 for 5 bonus share issue together with the renewal of the share buy-back option.

As mentioned earlier HSBC Bank Malta plc lost most ground during this week during which its share price dropped by 1.69% to Eur2.85 as 44,136 shares changed hands across 23 deals.

Lombard Bank Malta plc was a positive performer during this week with a gain of 1.69% to Eur3.00 as 1,000 shares were negotiated on a single deal.

During this week Fimbank plc managed to recover most of last week’s losses with a gain of 6.92% as its share price closed at $1.39 when 8,209 shares were negotiated across three deals.

The share price of Go plc dropped by 0.26% to Eur1.895 as 3,650 shares were negotiated across two transactions.

Malta International Airport plc was the best performer this week with an increase of 11.61% to Eur2.50.  Three deals for a total volume of 2,580 shares were executed. On Tuesday the share price of MIA increased by the daily limit of 6.96% to Eur2.396.  Two thousand two hundred shares changed hands across two deals.  On Wednesday the share price continued to increase as it rose by a further 4.3% to Eur2.50 as just 380 shares were traded in a single deal.  This followed an interview held last week by MIA CEO Julian Jaegar during which he pointed out that the first half of 2009 is expected to be difficult whilst the second half of the year should be better.  MIA is trying to increase the routes from Malta and lower income from passenger movements is expected to be offset by increased revenues derived from concessionaires following the new contracts which have assured MIA high minimum guaranteed revenues. 

On Thursday the share price of Grand Harbour Marina plc appreciated by 7.03% to Eur1.98 as 1,251 shares were negotiated on a single deal.  During an interview with The Times Business which appeared on Thursday’s issue, Mr. Nick Maris, Chairman of the Company, said that despite the current economic situation the yachting industry remains in good shape.

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]