Corporate Bonds appreciate and Government Stocks fall

MSE Trading Report for week ending July 17, 2009

Corporate Bonds appreciate and Government Stocks fall

Trading on the Malta Stock Exchange shifted to corporate bonds this week as twenty bonds traded across 63 transactions for a value of EUR 536,406. As the traded value was nearly double the previous week’s value, seven bonds appreciated in value, two traded lower while eleven remained unchanged, week-on-week.

Trading in Malta Government Stocks totalled 37 transactions for a value traded of over EUR 1.12m across twenty stocks. Unlike, the performance of the corporate bonds, fourteen government stocks traded lower on the week with only five registering gains.

The Malta Stock Exchange Index edged 0.59 per cent higher this week, closing at 2,965.752 points as it registered the second consecutive positive week despite being 7.5 per cent in the negative year to date.

The MSE Index increased mostly on Friday, with an increase of 0.554 per cent despite gaining minimally on Monday and Tuesday. On Wednesday the Index suffered its only loss of the week, a decrease of 0.063 per cent. The equity market did not register any deals on Thursday.

A total of 169 deals were registered over the week with a turnover of over EUR 5.58m, including seven put-through trades, for a total value of EUR 87,655. In the equity market 52 transactions were executed for a total value of EUR 143,852. In the treasury bills market a total of 10 deals were registered for a total value of over EUR 3.68m.

HSBC Bank Malta plc (HSBC) was once again the best performer from the banking sector, having increased by 1.92% on the week. These gains were registered yesterday, as the equity’s share price remained unchanged on Tuesday and Wednesday. HSBC closed at EUR 2.66, a rise of EUR 0.05, as 9,328 shares were traded over 13 deals.

During the week, HSBC announced that the Board of Directors is scheduled to meet on Friday July 31, 2009, to approve the Group’s and the Bank’s Interim Accounts for the half year ending June 30, 2009, and consider the declaration of an interim dividend.

The share price of Bank of Valletta plc (BOV) registered a gain on the week of 0.79% despite suffering a fall of 0.37% yesterday.  The equity closed the week at EUR 2.68, with a volume of 19,253 shares changed hands on 23 deals, for a total value of EUR 51,346. The equity traded at a low of EUR 2.63 and a high of EUR 2.70.

Lombard Bank plc registered a loss in its share price on a single trade of 7,000 shares. The equity closed at EUR 2.549, a decrease of EUR 0.001, or 0.04%.

Simonds Farsons Cisk plc was the only equity to remain unchanged closing at EUR 1.68, as 10,000 shares changed hands on a single transaction. The equity is up 3.16% year to date considering the bonus shares allotted to shareholders on June 25, 2009.

For the second consecutive week, MaltaPost plc was the best performing equity, although the equity traded once on Tuesday, edging almost 6% higher on the week. MaltaPost closed at EUR 0.71, appreciating by EUR 0.04, with 1,000 shares changing hands. In two weeks, the equity’s share price year to date loss decreased from 20.42% to 13.2%.

After remaining unchanged last week, GO plc suffered its first weekly decline in seven weeks. GO lost 1.65%, as the share price closed the week at EUR 1.79, depreciating by EUR 0.03, as 10,000 shares were exchanged over nine deals. The equity traded on Tuesday and Wednesday, decreasing on both days by EUR 0.02 and EUR 0.01 respectively.

On Tuesday, GO plc announced that Forgendo Ltd (the joint venture company between GO plc and Emirates International Telecommunications (Malta) Ltd) acquired a further 300,000 shares in Forthnet S.A. issued share capital, for a total consideration of EUR 575,370.

Malta International Airport plc (MIA) erased last week’s gains of 0.48%, as it decreased by 2.43%. The closing price for the week was EUR 2.05, a decline of EUR 0.051. MIA traded only on Wednesday, as 7,200 shares changed hands on four deals.

During the week, Plaza Centres plc announced that the Board of Directors will be meeting on Monday July 27, 2009, to consider and approve the company’s Interim Financial Statements for the half year ended June 30, 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].