Government stocks highly active during the week

MSE Trading Report for week ending July 3, 2009

Government stocks highly active during the week

This week was characterised by high demand for Malta Government Bonds and two new bond issues. Infact, the 6.25% International Hotel Investments 2015-2019 bond issue for a total value of EUR 35 million and the 6.25% Tumas Investments plc 2014-2016 bond issue for a total value of EUR 25million were oversubscribed on their respective launch days.

Trading in government bond market this week reached a value of over EUR 14.74m spread over 52 transactions. This was a positive week for government stocks as fourteen of which ended the week up with only four stocks losing ground on the previous week as the Governing Council of the European Central Bank decided 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.


The Malta Stock Exchange Index lost a marginal 0.02 per cent during the week, closing at 2,940.944 points. The MSE index gained 8.98% in the second quarter of 2009 however lost 8.62% in the first six months of trading.

The MSE Index was up on Wednesday and Thursday by 0.123% and 0.034% respectively, however these increases were not sufficient to erase the decreases of Tuesday and Friday, as the Index is now on its third consecutive week of negative performance. On Monday there was no trading session due to a public holiday.

A total of 181 deals were registered over the week with a turnover of over EUR 20.53m. In the equity market 76 transactions were executed for a total value of EUR 197,172, while in the corporate bond market 34 transactions were registered for a value traded of EUR 198,954. In the treasury bills market a total of 19 transactions were registered for a total value of over EUR 5.39m.

All banking equities remained unchanged this week. Bank of Valletta plc (BOV) registered the highest trades, as 29,010 shares changed hands across 31 deals. BOV closed the week at EUR 2.65, thus remaining unchanged for the third consecutive week. The equity decreased only on Tuesday (down 1.89%), but increased on Thursday and Friday.

HSBC Bank Malta plc (HSBC) remained unchanged throughout the trading week, after last week’s gains of 1.96%. The equity closed at EUR 2.60, after trading 19,645 shares over 22 transactions, for a total value of 51,010. HSBC traded at a high of EUR 2.61 and a low of EUR 2.579.

Lombard Bank plc closed the week at EUR 2.55, having traded once with a mere 600 shares changing hands. Likewise, FIMBank plc also traded once on Thursday at USD 1.18, with 2,287 shares changing hands.

GO plc was once again a positive performer, and the only equity to register gains this week. GO closed the week at EUR 1.82, appreciating by 0.55%, a mere EUR 0.01. A volume of 10,475 shares was traded over 12 deals as the equity traded at a low of EUR 1.79 and a high of EUR 1.821. GO is now the best performer year to date.

On Tuesday, GO plc announced that Forgendo Limited (the joint venture company between GO plc and Emirates International Telecommunications (Malta) Limited) acquired a further 991,449 shares in Forthnet S.A. issued share capital, for a total consideration of over EUR 1.82m.

Crimsonwing plc was the worst performer this week, as the equity lost an overwhelming 35.9% on a single trade of 14,200 shares. Crimsonwing lost EUR 0.14, to close the week at EUR 0.25.

Malta International Airport plc (MIA) was once again in negative territory, although this week’s loss was a marginal 0.05%.  MIA depreciated by EUR 0.001 from last week’s share price, closing the week at EUR 2.091, with 8,000 shares being exchanged on three deals. Wednesday’s increase of 3.25% was not enough to keep the share price up for the week, as MIA decreased on Friday by EUR 0.069.

Middlesea Insurance plc was also one of the negative performers this week. The equity closed at EUR 1.86, a loss of 7%, or EUR 0.14, as 3,000 shares changed hands across two deals.

The week was also characterised by single deals in a number of equities traded, namely, GlobalCapital plc (EUR 1.50; no change; 266 shares), Medserv plc (EUR 3.50; down EUR 0.05; 5,000 shares) and RS2 Software plc (EUR 0.679; down EUR 0.011; 5,000 shares).

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].