MSE Trading Report for week ending May 22 2009

The Malta Stock Exchange Index suffered a 1.17 per cent loss over the week, with share prices of Bank of Valletta plc, HSBC Bank plc, Lombard Bank plc and GO plc losing ground. The index closed the week at 2,983.015. Ten equities were negotiated with five closing in negative territory two others closing in positive territory and three remained unchanged.

A total of 290 deals were registered over the week with a turnover of over EUR16m. In the equity market, 105 transactions were executed for a total value of EUR620,321, while in the government bond market 87 transactions were registered for a value traded of over EUR9.87m. A total of 71 transactions were registered in the corporate bond market for a value of EUR567,489. In the treasury bills market a total of 21 transactions were registered for a total value of just over EUR5.64m.

The share price of Bank of Valletta plc (BOV) suffered a loss of 0.417 per cent closing the week at EUR2.389. In all, 33 transactions were registered for a volume of 21,525 and a total value traded of EUR51,440. On Wednesday, Bank of Valletta Group announced the issue of a ten-year 5.35% Subordinated Bond of EUR35m with a nominal value of EUR100 each issued at par, and subject to an over-allotment option not exceeding EUR15m. Their terms of issue include a preferred allotment to BOV shareholders and employees. Application of these Bonds has been made to the Listing Authority and to the Malta Stock Exchange for the admissibility of these bonds to the Official List and trading on the Malta Stock Exchange

HSBC Bank Malta plc (HSBC) registered the highest loss as the share price decreased by 3.85 per cent to close the week at EUR2.50. The volume traded was on the low side with only 6,600 shares changing hands. During the week, HSBC traded at a high of EUR2.60.

GO plc registered the highest number of transaction during the week, however the share price suffered a loss of 0.85 per cent closing at EUR1.74. A total of 46 transactions and a volume of 79,471 changed hands for a value of EUR135,984. The share price traded at a high of EUR1.749 and a low of EUR1.69.

Simonds Farsons Cisk plc suffered a minimal loss of 0.05 per cent to end this week’s trading session at EUR1.868. Only two transactions for a total volume of 2,000 shares changed hands.

One transaction of 2,000 shares led to a drop of 1.85 per cent in Lombard Bank plc’s share price. The total value registered was EUR5,300. The share price closed at EUR2.65.

The share price of Malta International Airport plc ended the week with gains as 1,799 shares changed hands. The share price closed the week at EUR2.18, an increase of 0.46 per cent.

Another gain, yet again, was registered in the share price of International Hotel Investments plc. The equity closed at EUR0.95 on a volume of 7,762 and a value of EUR7,282. On Friday, International Hotel Investments plc updated shareholders on its current projects in Russia, London and Portugal. In the interim director’s statement, the Group announced the inauguration day for the newly renovated Corinthia Hotel St Petersburg, which will take place on May 25. After going through extensive reconstruction and renovation, the hotel is set to be the largest five-star conference hotel in St. Petersburg offering 400 rooms and considerable meeting and conference facilities. IHI plc subsidiary Corinthia Hotel and Residences London, registered a significant milestone with the awarding of a turnkey contract to Ardmore Construction, a major construction company in the United Kingdom. They were entrusted with the development of a new five-star hotel which is set to open by the end of 2010 in London. IHI plc also informed shareholders of another project in Lisbon which has neared completion. The Corinthia Hotel Lisbon Spa and Health Centre is set to be in full operation by mid-June of this year.

For the second week running, FIMBank plc was the most traded share of the week with a volume of 257,934 changing hands. The share price did not register any change and closed at US$1.29.

MaltaPost plc’s share price remained unchanged at EUR0.71 and only one transaction was registered for a volume of 200,000 shares.

Medserv plc also did not register any change in its share price of EUR3.55 as 2,000 shares changed hands for a value of EUR7,099.

The Board of Directors of 6pm plc are expecting marginal profitability for the first six months of this year and a similar report as that of the first six months of 2008. This was announced in the interim director’s statement issued on Friday by the company. The main challenges for 6pm are undoubtedly the current economic environment together with a poor performing Sterling when compared to the Euro. Despite all this, the Board are taking measures which should in turn place them well for either a prolonged recession or a swift up-turn

Plaza Centres plc also issued their Interim Director’s Statement this week shedding light on the company’s business activities for the first quarter of 2009. As expected, the company’s financial performance for the first three months of this year was in line with that achieved in the same period in 2008. Given the current slow-down in the global economy, the directors are cautiously optimistic for the coming months.

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].