Lacklustre week for the MSE index

MSE Trading Report for week ending June 19, 2009

Lacklustre week for the MSE index

The Malta Stock Exchange Index lost 1.66 per cent closing at 3035.347 points, increasing the year to date loss to 5.39 per cent.

The MSE traded on four days this week due to the extensive power failure throughout Malta on Tuesday. The MSE Index increased only on Monday, with an increase of 0.063%. On Wednesday the Index lost 0.21%, while on Friday the index decreased by 0.504%. On Thursday, the Index suffered the highest loss of the week, with a decrease of 1.017%.

A total of 226 deals were registered over the week with a turnover of over EUR 18.54m. In the equity market 92 transactions were executed for a total value of EUR 287,842, while in the corporate bond market 49 transactions were registered for a value traded of EUR 411,617. A total of 60 transactions were registered in the government bond market for a value of over EUR 5.6m. In the treasury bills market a total of 24 transactions were registered for a total value of over EUR 12.24m.

Bank of Valletta plc (BOV) was the only equity to remain unchanged from last week’s share price. In fact, BOV closed at EUR 2.65, with 52,632 shares changing hands on 38 deals. The increase of 0.94% on Monday was not sufficient to keep the share price up for the week, as BOV suffered three consecutive losses on the other trading days.

HSBC Bank Malta plc (HSBC) ended the week 1.92% lower than last week. The equity closed at EUR 2.55, a loss of EUR 0.05, after trading 24,720 shares across 28 deals. This decrease was registered on Friday, as the share price remained stable on Monday and Wednesday.

FIMBank plc lost USD 0.01 on Friday. A volume of only 100 shares was traded on one transaction, as it closed at USD 1.27, a loss of 0.78%.

Likewise, Lombard Bank plc lost 0.77% from its previous share price, as the share price fell by EUR 0.02, closing the week at EUR 2.58. Lombard traded only on Friday, as 1,000 shares were exchanged in a single trade.

GO plc was the only positive gainer this week, as the share price appreciated marginally. The equity closed at EUR 1.75, 0.57%, or EUR 0.01, higher than last week, with 26,200 shares changing hands across 11 deals. GO increased on Wednesday (up 0.52%) and Friday (up 0.05%), while remaining stable on Monday and Thursday.

On Monday, GO plc announced that Forgendo Ltd (the joint venture company between GO plc and Emirates International Telecommunications (Malta) Ltd) acquired a further 591,182 shares in Forthnet S.A., for a total consideration of over EUR 1.1m. Furthermore, on Thursday GO announced that Forgendo acquired a further 300,000 shares in Forthnet S.A, for a total consideration of EUR 627,720.

International Hotel Investments (IHI) was the worst performer from the traded equities during the week, after a loss of 3.94% on just one deal. IHI closed the week at EUR 0.951, a loss of EUR 0.039. IHI traded on Thursday with 4,700 shares changing hands.

Malta International Airport plc (MIA) continued to lose ground this week. MIA’s share price decreased by 3.67%, closing the week at EUR 2.10, a depreciation of EUR 0.08. The equity increased only on Friday by EUR 0.10, although this increase was not sufficient to recoup the losses suffered on Monday, Wednesday and Thursday. MIA traded 10,150 shares across seven transactions.

GlobalCapital plc also suffered a loss in its share price, decreasing by 3.23% on the week, closing at EUR 1.50, EUR 0.05 lower than last week, with 800 shares changing hands over three deals.

Similarly, Plaza Centres plc lost EUR 0.021 from its share price. The equity closed at EUR 1.699, as 5,000 shares changed hands on two deals.

Applications for the EUR 20 million bond issue, at a coupon of 6.25% per annum, maturing between 2014 and 2016, of Tumas Investments plc will open for public on July 3, while the pre-placement agreements by intermediaries will be placed on July 1, 2009.

International Hotel Investments plc announced the issue of a EUR 30 million bond issue at a coupon of 6.25% per annum, with an option to increase the amount by a further EUR 5 million in the event of over-subscription. The bonds have a final maturity date of July 10, 2019 but may be redeemed between 2015 and 2018.

The proceeds from the bond issue will be used for general corporate funding purposes, and financing the Issuer’s expansion and acquisition policy in line with its investment objective and strategy. The Bonds constitute the general, direct, unconditional, unsubordinated and unsecured obligations of the Issuer and shall at all times rank pari passu with other unsecured and unsubordinated debt.

The offer to the public will open on June 30, while the pre-placement agreements by intermediaries will be placed on June 26, 2009.

On Wednesday, the Treasury announced the issue of EUR 100 million Malta Government Stocks. These are of 3.6% MGS 2013 (IV) Fungibility Issue, 5.2% MGS 2020 (I) Fungibility Issue, or any combination of the above two Stocks shall in the aggregate be EUR 100 million, subject to an Over-Allotment Option. Applications open on Monday, June 22, 2009 and close on the time and dates at the discretion of the Accountant General.

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].