MSE Trading Report for week ending August 7, 2009

Index returns to losses as HSBC down 12%

The Malta Stock Exchange Index edged 5.77 per cent lower this week, closing at 3,048.444 points. The Index has retreated to a year to date loss of just under 5 per cent.

The MSE Index increased only on Monday by 0.007 per cent, while decreasing on all other trading sessions. The highest loss was registered on Thursday, with a fall of 2.926 per cent, mainly due to the losses suffered by the largest capitalised companies.

A total of 261 deals were registered over the week with a turnover of over EUR 15.63m. In the equity market 123 transactions were executed for a total value of EUR 382,701, while in the government bond market 28 transactions were registered for a value traded of over EUR 9.58m. A total of 97 deals were registered in the corporate bond market for a value of EUR 914,021. In the treasury bills market a total of 13 transactions were registered for a total value of over EUR 4.75m.

HSBC Bank Malta plc lost a staggering 12.08% this week. The closing price for the week was EUR 2.62, decreasing by EUR 0.36 on the week, having traded 47,618 shares across 42 deals, for a total value EUR 130,337. These losses came after last week’s announcement of decreased profits for the first six months of 2009. HSBC traded at a low of EUR 2.62 and a high of EUR 2.99. The equity suffered losses on three consecutive days, and thus affecting the Index’s performance.

Bank of Valletta plc (BOV) lost some of its recent gains, as it closed the week at EUR 2.90, a decrease of EUR 0.099. BOV registered 44 deals of 50,927 shares, trading at a high of EUR 3.001 and a low of EUR 2.85, but falling by 3.3% on the week. The equity registered a gain of 0.03% was on Monday, but fell on Wednesday and Thursday by 1% and 2.36% respectively.

Lombard Bank plc and FIMBank plc remained stable this week. Lombard closed the week at EUR 2.60, while FIMBank closed at USD 1.29. Both equities registered three transactions, as 3,700 shares changed hands in Lombard and 1,700 shares in FIMBank.

GO plc was the only equity to register gains on the week. GO appreciated by 2.29%, closing the week at EUR 1.79. A total of 29,770 shares changed hands over 16 deals. The equity has regained its positive year to date performance by 2.17%.

Malta International Airport plc, Simonds Farsons Cisk plc and MaltaPost plc closed the week unchanged at EUR 2.35 (850 shares on one deal), EUR 1.68 (1,126 shares on three deals) and EUR 0.70 (4,169 shares on four deals) respectively.

The share price of International Hotel Investments plc (IHI) depreciated by EUR 0.058 on the week. The closing share price for the week was EUR 0.841, declining by 6.45%, as 8,077 shares changed hands on three transactions. The drop in price came about prior and after the Company announcement of the Financial Statements for the half year ended June 30, 2009.

IHI registered a sharp decline in its Profit before tax, from a profit of EUR 6.01 million in 2008, to a Loss before tax of EUR 1.43 million for the first six months. Likewise, Turnover also has decreased from EUR 64.3 million in 2008 to EUR 51.39 million in 2009, a decrease of just over 20%. The company stated that “the adverse effects of the financial crisis that started to be felt in the second semester of 2008 have spilled over into 2009 with the hospitality industry suffering the effects of recession in its main feeder markets resulting in falling occupancies and increasing pressures on room rates.” Earnings per share declined from a positive EUR 0.004 to a negative EUR 0.005.

Both Middlesea Insurance plc (MSI) and Plaza Centres plc lost a marginal 0.06% loss on the week. MSI closed the week at EUR 1.759 having traded 4,000 shares on three deals, while Plaza closed the week at EUR 1.649, as 10,000 shares changed hands on a single deal. On Tuesday, MSI announced that the Board of Directors is scheduled to meet on Tuesday, August 25, 2009, to consider and approve the financial statements for the half-year ended June 30, 2009.

During the week, Medserv plc also announced that the Board of Directors is scheduled to meet on the August 31, 2009, to consider, and if thought fit, approve the Interim Financial Statements of the Company for the financial period ended June 30, 2009.

This week the Governing Council of the ECB 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.

This article which was compiled by Jesmond Mizzi, Managing Directors of 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].