Bank of Valletta only gainer

MSE Trading Report for week ending June 05 2009

Bank of Valletta only gainer

The Malta Stock Exchange Index fell 0.58 per cent in the first week of June as the main focus of the week was the Bank of Valletta bond issue. The MSE index closed at the 3,041 level. The index traded only in positive territory on Wednesday. Eight equities were negotiated this week with five closing in negative territory, one closing in positive territory and two remained unchanged.

A total of 93 deals were registered over the week with a turnover of just over Eur4m compared to Eur11m last week. In the equity market, 93 transactions were executed for a total value of Eur251,531, while in the government bond market 40 transactions were registered for a value traded of Eur447,356 compared to over Eur7.75m last week. A total of 58 transactions were registered in the corporate bond market for a value of Eur670,415. In the treasury bills market a total of 19 transactions were registered for a total value of just under Eur2.68m.

The share price of Bank of Valletta plc (BOV) closed the week at Eur2.449, up 2.47 per cent as 41,198 shares changed hands in 32 transactions. BOV was once again the most traded equity this week both in volume traded and deals executed. As evident from the trading volumes referred to above local investors were clearly focused on the BOV Bond issue and on Thursday the Bank informed intermediaries that the pre-placement of the bond issue was heavily over-subscribed. The offer which opens to the public on Monday is likely to close shortly after given the massive demand for the issue.

The worst performer of the week was Middlesea Insurance plc which lost 11.50 per cent on two deals totalling a mere 200 shares with the price closing at Eur2.00 a level last seen in February 1999.

The share price of Malta International Airport plc (MIA) ended the week down 5.66 per cent having gained 6.97 per cent the previous week. The equity was also the victim of low trading as only 838 shares on two deals pulled down the price to Eur2.20.

HSBC Bank Malta plc (HSBC) lost ground again this week as the share price fell by 0.69 per cent closed at Eur2.58. The volume traded which was more than last week amounted to 38,422 shares spread across 23 deals. The equity traded at a low of Eur2.55 and a high of Eur2.584.

FIMBank plc also had another quiet week as 5,200 shares changed hands in four transactions as the share price fell by 0.78 per cent to close at $1.28.

International Hotel Investments plc fell one per cent this week as the equity closed Eur0.99, but remained the best equity year to date as the share price is up 10.61 per cent.

The share price of GO plc remained unchanged at Eur1.72 as 25,761 shares changed hands across 28 deals. The share price traded at a high of Eur1.74 and a low of Eur1.72.

Five hundred shares traded in Medserv at Eur3.55 having last traded on May 19, 2009 at the same price.

As expected the Governing Council of the European Central Bank decided on Thursday that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.00%, 1.75% and 0.25% respectively.

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].