Local investors focus on new bond issues

MSE Trading Report for week ending June 26, 2009

Local investors focus on new bond issues

The Malta Stock Exchange Index continued its negative run, as this week it lost 3.09 per cent, closing at 2,941.592 points, dragging down the year to date loss to 8.31 per cent.

The MSE Index increased only on Monday, with an increase of 0.066%. On Wednesday the Index suffered the highest loss of the week, with a decrease of 2.322%, while on Thursday the Index decreased by another 0.70%. On Tuesday and Friday the Index fell by 0.30% and 0.112% respectively.

A total of 200 deals were registered over the week with a turnover of over EUR 14.77m. In the equity market 81 transactions were executed for a total value of EUR 167,787, while in the government bond market 37 transactions were registered for a value traded of over EUR 6.94m. A total of 58 transactions were registered in the corporate bond market for a value of EUR 390,326. In the treasury bills market a total of 23 transactions were registered for a total value of over EUR 7.27m.

HSBC Bank Malta plc (HSBC) was the best performer from the banking sector, after it erased last week’s losses of 1.92%, having increased this week by 1.96%. HSBC closed at EUR 2.60, an increase of EUR 0.05, having traded 11,485 shares over 15 deals. The equity was the best performer on Friday’s session, as it increased by EUR 0.08 on a turnover of 3,380 shares.

FIMBank plc continued to lose ground this week, after a loss of 7.09%. The decrease of USD 0.09 during the week was mainly suffered on Tuesday, with a loss of USD 0.088. The closing price for the week was USD 1.18, as the equity also decreased on Wednesday by USD 0.002. A volume of 7,789 shares was traded over four deals.

Bank of Valletta plc (BOV) remained unchanged for the second consecutive week, although the equity had a mixed week, increasing both on Tuesday and Friday, and decreasing on Wednesday and Thursday. BOV closed at EUR 2.65, as 23,368 shares changed hands on 25 deals, for a total value of EUR 61,902. The equity traded at a low of EUR 2.63 and a high of EUR 2.67.

Lombard Bank plc also suffered losses in its share price. The equity closed at EUR 2.55, a decrease of EUR 0.03, or 1.16%. Lombard traded only on Thursday, with 5,000 shares changing hands on two deals.

GO plc continued its positive run this week, having increased in every session traded. GO appreciated by 3.43%, closing the week at EUR 1.81, a rise of EUR 0.06, with 16,300 shares changing hands over 10 deals.

On Thursday, GO plc announced that Forgendo Ltd (the joint venture company between GO plc and Emirates International Telecommunications (Malta) Ltd) acquired a further 1,000,000 shares in Forthnet S.A. issued share capital, for a total consideration of EUR 1,772,350.

Once again, International Hotel Investments (IHI) was the worst performer from the traded equities. IHI lost a staggering 15.88%, after trading 6,280 shares across seven deals. The equity closed the week at EUR 0.80, a decrease of EUR 0.151.

Simonds Farsons Cisk plc depreciated by EUR 0.05 from last week’s share price. The closing price for the week was EUR 1.80, as 1,054 shares changed hands on two deals.

Maltapost plc was one of the losers of this week. The equity closed at EUR 0.651, with a loss of EUR 0.059, or 8.31%, as 17,974 shares were exchanged across 11 deals.

Malta International Airport plc (MIA) is now on its fourth consecutive negative week. Infact, MIA traded 3,882 shares over four deals, closing the week at EUR 2.092, a decrease of EUR 0.008. MIA decreased on Wednesday by 0.48%, but remained stable on Thursday. On Friday the equity recovered some of Wednesday’s losses, increasing by 0.1%.

GlobalCapital plc traded only on Monday, closing at EUR 1.50, and therefore remaining stable from last week, as 600 shares were exchanged.

Although, trading in the equity market was low this week, investors kept financial intermediaries busy enquiring about the bond issues available at the moment.

On Friday, International Hotel Investments plc announced that the pre-placement agreements with financial intermediaries was concluded and was over subscribed. Applications for the EUR 30 million bond issue, at a coupon of 6.25% per annum, maturing between 2015 and 2019, will open for the public on Tuesday, June 30.

Meanwhile, 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 on July 3, while the pre-placement agreements with intermediaries will be placed on Wednesday, July 1, 2009.

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].