MSE Trading Report for week ending April 30, 2009

Local financial institutions hit by global financial crisis.

The Malta Stock Exchange Index ended the trading week at 2,829.478 points, increasing by a mere 0.13 per cent over the week. Eight equities were negotiated, with two closing in positive territory, four others closing in negative territory and two remain unchanged.

During the week a total of 196 deals were registered on the Malta Stock Exchange with a turnover of over Eur3.73m. In the equity market, 103 transactions were executed for a total value of Eur335,225, while in the government bond market 49 transactions were carried out for a total value of over Eur1.58m. The corporate bond market registered a volume of 221,797 nominal transacted over 36 deals and a value of Eur214,533. The treasury bills market saw 7 transactions taking place for a total value of just over Eur1.6m.

The share price of Bank of Valletta plc (BOV) was the worse hit this week as it registered a loss of 6.29 per cent, closing the week at Eur2.399. Trading was low as only 11,038 shares changed hands for a total value of Eur27,308. The share price of BOV traded at a high of Eur2.55 during the week. The company announced on Thursday that the Board of Directors had approved the Bank’s interim unaudited financial statements. As expected, the Group has suffered a substantial decrease in profits when compared to the same six months last year. The profit before tax for the six months to March 31, 2009 was Eur6.33m, a significant drop of Eur18.68m. The Board has approved an interim dividend of Eur0.035 gross per share. The results for the first six months of the financial year have been impacted by three factors, mainly, the strength and commitment of the Bank’s core domestic retail and corporate banking business, the radical measures by the European Central Bank in an effort to combat growing recessionary measures, and the disruptive impact of the global financial crisis on the Bank’s Financial Markets book.

HSBC Bank Malta plc (HSBC) also registered a loss during this week, as the share price decreased by Eur0.04, or 1.64 per cent. The equity closed the week at Eur2.40. A total of 83,798 shares were traded over 58 deals. The share price traded at a high of Eur2.44 and a low of Eur2.348.

Malta International Airport plc (MIA) was another equity to suffer losses during this week. The share price dropped to Eur2.10 on only two transactions and a volume 1,073 shares.

Lombard Bank plc did not register any change in its share price as it closed this week’s trading at Eur2.65. Once again a low volume of one transaction was registered in Lombard’s shares for a volume of 2,940 and a value of Eur7,791.

FIMBank plc was the other equity whose share price remained unchanged for the week. Only one trade was registered for a petty volume of 100 shares. The share price ended the week at US $1.364.

International Hotel Investments plc (IHI) was one of the equities to register a gain in its share price, closing the week at Eur0.80, a gain of 9.59 per cent, or Eur0.07, on the week. The volume traded this week was 96,300 shares and the value was Eur72,867 over 12 deals.

GO plc registered a good week as its share price increased by 3.29 per cent to Eur1.60. The volume registered this week was 15,500 over 12 deals. The value traded was just under Eur25,000. The share price traded at a high of Eur1.62 and a low of Eur1.59.

During the week, Simonds Farsons Cisk plc announced the preliminary financial statements of the Group for the year ended 31st January 2009. The Group registered a sharp decrease in profit to Eur895,000, from Eur4.4m the previous year. The Group cited a number of reasons for the drop in profit, mainly the poor performance of the manufacturing segment of the Group. This has been affected by a number of factors, including the opening of hard-discount stores and the complete liberalisation of the market. On the other hand, the food importation business and the franchised food operations of the Group, registered a satisfactory growth level. The Group is proposing a final net dividend of Eur0.0311 per each ordinary share.

On Tuesday, Middlesea Insurance plc announced a loss for the financial year ended December 31, 2008, the first loss in its 27 year history of positive financial results. The crisis in the world’s financial markets and the performance of the Italian subsidiary were cited as the two main factors for the loss of Eur20.6m for the financial year, when compared to a profit of Eur6.9m in 2007.  

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]