MSE Trading Report for week ending September 25, 2009

Investors focus on Corporate Bonds

On Tuesday, within 45 minutes of the opening of subscriptions of the combined offer announced by Island Hotels Group Holdings plc earlier in the month was taken up and over-subscribed.  The bond offer by Vassallo Builders Group and T.M.C. Limited was for EUR 14 million at a coupon rate of 6.5% p.a. The equity offer by Vassallo Builders Group Limited to the general public was of 8,383,300 ordinary shares at EUR 1 in Island Hotels Group Holdings plc.

On Thursday, Melita Capital plc completed the pre-placement agreements with financial intermediaries for their bond issue of EUR 20 million bonds at a coupon rate of 7.15 per cent per annum maturing between 2014-2016, and subject to an over allotment option of EUR 5 million. Subscriptions for the general public will open on Monday, September 28, 2009.

Despite these two new bond issue during this short trading week, corporate bonds traded on the Malta Stock Exchange exceeded government bonds both in volume and value traded. Infact, a total of 72 deals were registered in the corporate bond market for a value traded of over EUR 1.26m, while in the government bond market 41 transactions were registered for a value of EUR 407,841. In the treasury bills market a total of eight transactions were registered for a total value of over EUR 2.56m.

In the equity market a gain of 0.583 per cent registered yesterday, ended three weeks of consecutive losses for the Malta Stock Exchange Index, as the Index closed at 3,008.403 points, gaining 0.1 per cent on the week. This week the Index edged below the 3,000 level, with losses of 0.182 per cent and 0.355 per cent registered on Tuesday and Wednesday. GO plc’s final trade on Friday helped the index to register gains this week, and therefore maintain the index above the 3,000 mark. Eleven equities were traded this week, with four closing in positive territory, four remaining unchanged, and three closing in negative territory.

Trading on the MSE continues to be low, as a total of 195 deals were registered over the week with a turnover of over EUR 4.49m of which 74 transactions were executed in the equity market for a total value of EUR 254,552. 

The share price of Bank of Valletta plc continued to strengthen its year to date positive performance, as the equity registered an increase of EUR 0.07 or 2.32 per cent on the week. The equity registered the most deals, with 38,749 shares changing hands on 25 deals, for a total value of EUR 117,990. BOV registered increases of 1.33 per cent and 1.31 per cent on Thursday and Friday respectively, although having retreated by 0.33 per cent on Tuesday. The share price’s weekly high was of EUR 3.09, at which it closed, having traded at a low of EUR 3.01.

HSBC Bank Malta plc recovered some of last week’s losses, registering a rise of EUR 0.01, closing the week at EUR 2.63. HSBC registered 16 deals of 10,638 shares, and thus registering an increase of 0.38 per cent.

FIMBank plc registered a further decline in its share price, closing the week at USD 1.195, a loss of 4.4 per cent. FIMBank decreased by almost seven per cent on Wednesday, although having recouped 2.75 per cent on Thursday, as 82,500 shares changed hands on four deals.

Three trades of 1,800 shares registered on Friday helped Malta International Airport plc (MIA) recover from last week’s 3.47 per cent loss, gaining almost 5.2 per cent. MIA closed the week at EUR 2.23, appreciating by EUR 0.11, as the equity was the best performer this week.

International Hotel Investments plc remained unchanged at EUR 0.80, registering two transactions of 2,982 shares.

Simonds Farsons Cisk plc traded only on Tuesday, closing the week at EUR 1.60, a marginal rise of EUR 0.005, as 3,129 shares changed hands across two deals.

During the week, Simonds Farsons Cisk plc announced that the Board of Directors is scheduled to meet on Wednesday, September 30, 2009 in order to consider and approve the Company’s Financial Statements for the six month period ending on July 31, 2009, and consider the distribution of an interim dividend on all Ordinary Shares held by shareholders on the Register as on Friday, October 9, 2009.

MaltaPost plc traded only on Tuesday, remaining unchanged at EUR 0.69 for the second consecutive week, as 2,056 shares changed hands over two deals.

GO plc continued its negative run, decreasing a further 6.51 per cent on the week. The closing share price was EUR 1.58, depreciating by EUR 0.11, with 9,675 shares changing hands on 12 deals. The equity decreased by 3.55 per cent and 4.91 per cent on Wednesday and Thursday respectively, having recovered some of the losses on Friday.

The share price of Crimsonwing plc declined by a marginal EUR 0.001, closing the week at EUR 0.389, having registered a single traded of only 500 shares on Thursday.

RS2 Software plc and Santumas Shareholdings plc were the other equities to closed the week unchanged at EUR 0.599 (14,027 shares on six deals) and EUR 3.04 (2,500 shares on a single deal) 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].