Low trading on equities as Melita announces Bond Issue

September 11, 2009

MSE Trading Report for week ending September 11, 2009

Melita Capital plc announced the issue of EUR 20 million bonds at a coupon rate of 7.15 per cent per annum, subject to an over allotment option of EUR 5 million. The bonds shall mature between September 30, 2014, and September 30, 2016, subject to prior notice. Proceeds from the bond issue shall be used to substitute project finance currently in place and for the funding of the continued capital expenditure. The bonds shall be issued at par and constitute the general, direct, unconditional, unsubordinated and unsecured obligations of the Issuer and shall at all times rank pari passu with other outstanding unsecured obligations.

Meanwhile, the Malta Stock Exchange Index declined by a further 0.71 per cent this week, closing at 3,032.468 points. A loss of 0.722 per cent on Wednesday had a high effect on this week’s index performance, as gains of 0.073 per cent and 0.308 per cent were registered on Thursday and Friday respectively. Eight equities were traded this week with just one closing in positive territory, two remaining unchanged, and five closing in negative territory.

A total of 203 deals were registered over the week with a turnover of over EUR 8.39m. In the equity market 58 transactions were executed for a total value of EUR 145,059, while in the corporate bond market 92 transactions were registered for a value traded of over EUR 1.14m. A total of 46 deals were registered in the government bond market for a value of over EUR 4.77m. In the treasury bills market a total of seven transactions were registered for a total value of over EUR 2.33m.

HSBC Bank Malta plc was the only equity to close in positive territory this week. HSBC gained 0.75 per cent, after trading a volume of 22,273 shares across 27 deals, for a total value of EUR 59,435. The equity closed at EUR 2.67, a rise of EUR 0.02, trading between the range of EUR 2.70 and EUR 2.65. A rise of 1.85 per cent registered on Monday was partly erased by a fall of 1.44 per cent on Wednesday, although increasing again on Friday by 0.38 per cent.

Bank of Valletta plc (BOV) remained unchanged this week, closing at EUR 2.99. A gain of 1.01 per cent on Friday kept the share price unchanged for the week, as the share price trailed the index’s gains and losses. The equity traded at a low of EUR 2.949 and a high of EUR 3.00, as 12,155 shares changed hands on 15 transactions.

The share price of Lombard Bank plc registered a marginal loss of EUR 0.001 on Wednesday, to close the week at EUR 2.549, with 4,000 shares changing hands over two deals.

Santumas Shareholdings plc registered a single trade of 1,250 shares and thus remaining unchanged at EUR 3.04.

Middlesea Insurance plc (MSI) registered an overwhelming loss of 6.2 per cent on Wednesday, on a single trade of just 194 shares. The closing price for the week was EUR 1.65, depreciating by EUR 0.109, as MSI is now at a year to date loss of almost 35.3 per cent.

GO plc continued its negative run, decreasing a further 5.03 per cent. This loss was registered on Monday, as the equity closed the week at EUR 1.70, as 12,550 shares changed hands across six transactions. With this loss, GO is now at a year to date loss of 2.97 per cent, having previously been at a year to date gain of 2.17 per cent.

The share price of International Hotel Investments plc (IHI) lost EUR 0.02 this week, after last week’s loss of 2.5 per cent. The equity registered five deals of 15,260 shares, closing the week at EUR 0.80.

MaltaPost plc registered a decrease of 1.43 per cent on Friday, having traded 2,198 shares on a single deal, closing the week at EUR 0.69, a loss of EUR 0.01.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].