MSE Trading Report for week ending August 28, 2009

Three locally listed companies announce losses

Four listed companies issued their Interim Financial Statements, with only one company announcing a Profit before tax. The latter, Lombard Bank plc, despite reporting a Profit before tax of EUR 6.44 million registered a decline of EUR 1.31 million in profits when compared to the first six months of 2008.  The Group stated that “notwithstanding subdued business sentiment amid global recession the Bank’s Loans and Advances remained stable, Customer Deposits grew satisfactorily despite record low interest rates in financial markets.” Total Operating Income decreased from EUR 18.89 million in 2008 to EUR 18.375 million in 2009, a decline of 2.73%. Earnings per share for the period decreased slightly from EUR 0.126 to EUR 0.104.

On the other hand, Middlesea Insurance plc (MSI) registered a staggering Loss before tax of EUR 17.72 million, compared to a loss of EUR 2.11 million for the same period last year. The main cause for this decrease was due to the negative results registered by the Italian subsidiary Progress Assicurazioni SpA. The operations of MSI performed positively during the first half of 2009 and registered a profit before tax and group company dividends of EUR 1.28 million. Loss per share for the period increased from a negative EUR 0.062 to EUR 0.687.

6PM Holdings plc registered a decrease of GBP 117,791 in its Profit before tax, from a profit of GBP 90,418 in the first six months of 2008 to a loss of GBP 27,373 in the first six months of 2009. On the other hand, Revenue for the period increased by 8.87%, from GBP 2.64 million to GBP 2.88 million. Earnings per share for the period decreased from a positive GBP 0.013 to a negative GBP 0.005.

GlobalCapital plc saw a decline in its Loss before tax of 51.75%, registering a Loss before tax of EUR 2.39 million, compared to last year’s Loss before tax of EUR 4.96 million. The Group stated that “the severe downturn in global major economies and the financial services industry has continued to negatively impact GlobalCapital during the first six months of 2009. The Group’s portfolio of investment securities was further negatively impacted by the continued stockmarket downturn during the first quarter of the year. However, an improvement in the performance of the Group’s investment portfolio was registered in the second quarter.” Loss per share for the period decreased from EUR 0.331 to EUR 0.173.

Meanwhile, the Malta Stock Exchange Index gained 0.69 per cent this week, closing at 3,084.698 points. The Index increased on Monday and Tuesday by 0.655 per cent and 1.542 per cent respectively, while retreating on the remaining trading sessions. Eight equities were traded this week with two closing in positive territory, three remaining unchanged and three closing in negative territory.

A total of 201 deals were registered over the week with a turnover of over EUR 11.64m. In the equity market 74 transactions were executed for a total value of EUR 201,119, while in the corporate bond market 66 transactions were registered for a value traded of over EUR 1.12m. A total of 53 deals were registered in the government bond market for a value of over EUR 4.37m. In the treasury bills market a total of 8 transactions were registered for a total value of over EUR 5.94m.

The share price of HSBC Bank Malta plc (HSBC) erased last week’s loss to increase by 0.19 per cent over the week. HSBC closed the week at EUR 2.675, with 6,284 shares over 11 deals. The equity traded at a high of EUR 2.80, which was reached on Tuesday (up 4.87% on the day), and a low of EUR 2.675. Tuesday’s gains were partly erased on Wednesday and Friday as the equity lost 3.57% and 0.93% on the respective days, and thus increasing only by a marginal EUR 0.005 on the week.

Bank of Valletta plc (BOV) registered a rise of EUR 0.10 this week, as the equity closed at EUR 3.00. A volume of 16,979 shares were executed across 30 deals. Gains were registered on Monday and Friday of 3.45% and 1.69%, however the equity edged 1.67% lower on Thursday.

FIMBank plc traded only on Monday on a single of 169 shares, as the equity remained unchanged, closing the week at USD 1.289.

GO plc decreased a marginal 0.06% this week, closing the week at EUR 1.799, with 32,280 shares changing hands across 16 deals, for a total value of EUR 58,044.

Santumas Shareholdings plc depreciated by 5% on Thursday, closing at EUR 3.04 or EUR 0.16 lower than the last traded price as five deals of 6,600 shares were traded.

The share price of Medserv plc lost last week’s gains and retreated to the closing price of EUR 3.50, decreasing by 1.27 per cent, with 8,000 shares changing hands on one transaction.

Both Plaza Centres plc and Malta International Airport plc closed the week unchanged at EUR 1.649 (3,000 shares on one deal) and EUR 2.35 (9,200 shares on nine deals) respectively.

Yesterday, Corinthia Finance p.l.c. announced the issue of 6.25% EUR 20 million bonds due in 2016-2019 with a nominal value of EUR 100 per bond issued at par subject to an over allotment option of EUR 5million. The proceeds raised are partially earmarked for the redemption of an existing due for maturity in October, while the remaining funds will be used to part finance the development strategy of the Corinthia Group. Application forms and copies of the Prospectus will be available from September 1, 2009 while subscriptions will open on September 15, 2009.

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].