Maltacom: where's the fuss about Multiplus?

Hooray! This week's equity turnover by value was the highest for 2007, with the figures coming in at 697,850 shares for a value of Lm1.3 million. One has to go back nearly six months to the week ending September 1, 2006, to see a higher turnover. The figure then was Lm1.77 million.

Out of this week's Lm1.3 million turnover, a full 83% - or Lm1.08 million - was transacted in HSBC Bank Malta plc (HSB) shares. The bulk of this volume resulted from one matched deal for 368,000 shares effected at Lm2.147, or 2c2 higher than Friday's close.

Coincidentally, the most active week for 2006 was also the eighth week of the year, which last year ended on February 24. Turnover by value then, however, was a gargantuan Lm8 million and the mood was markedly more bullish.

The MSE Index continued, crab-like, down 0.53% for the week at 5,078.03. From a cautiously optimistic viewpoint this is 6.74% higher than the 2007 Index low of 4,757.34.

Bank of Valletta plc (BOV) only moved sideways this week, marking minuscule changes. After opening the week just a few mils lower at Lm3.694, BOV closed on Monday slightly lower at Lm3.68, and on Tuesday at Lm3.69.

It dipped to as low as Lm3.65 in mid-session on Wednesday but recovered a full 4c to close unchanged at Lm3.69. Thursday's slow session saw a number of small trades executed in a very tight price range, closing at Lm3.688.

Friday was much of the same as trading started at Lm3.688 and closed at Lm3.678, for BOV to end the week 0.6% lower. In total, 18,238 shares changed hands for a value of Lm67,117. At the end of trading, best bids totalled 350 shares at Lm3.601, with a minuscule supply of 12 shares starting at Lm3.676.

HSB, not to upset any applecart, also had an uneventful week. It started fairly optimistically, opening 1c5 higher at Lm2.15 on Monday, climbing to Lm2.16. However the momentum was not sustained and HSB ended the day at Lm2.145.

It opened 5 mils lower on Tuesday, slipped to a mid-session low of Lm2.13. Then, a last-minute deal took the price back to Lm2.15. Wednesday saw the price relatively stable in a range of Lm2.139 and Lm2.15.

The main highlight of Thursday's trading was the matched deal mentioned above, with a turnover value of just over Lm790,000. The other deals were comparatively minuscule, as the price slid lower, closing at Lm2.129.

Friday saw HSB trade in a range of Lm2.12 to Lm2.127, opening and closing at Lm2.125 for a 0.5% drop on the week. Buyers in tomorrow's and Tuesday's sessions will qualify for the gross dividend of 10c6 (6c9 net), payable on April 21.

At the end of trading, bids for 2,333 shares started at Lm2.10, and the best offer for 992 shares stood at Lm2.124.

Maltacom plc (MLC) finally broke its record one-week "silence strike", as 41,000 shares changed hands for a market value of Lm58,635. It opened and closed on Monday at Lm1.46, 2c lower than its previous close, on slim volume of only 1,680 shares.

It slid a further 4c by Tuesday's close to a 17-month low of Lm1.42 - MLC last traded at this level on September 22, 2005. It recovered slightly on Wednesday, rising to Lm1.449, maintained this level on Thursday, only to falter and slip back to Lm1.42 on Friday to end the week a heavy 4% lower.

At this price, buyers can acquire shares at an 8.5% discount to the Lm1.554 price that Tecom paid Government for its 60% shareholding nine months ago - and MLC did not own Multiplus then!

At the end of Friday's session, the best bid was for 500 shares at Lm1.421 and the best offer for 5,000 shares at Lm1.43.

Malta International Airport plc only traded on Tuesday and Thursday. After a 3.4% air pocket took it down to Lm1.35 on Tuesday, it stabilised on Thursday, trading at Lm1.38 and Lm1.386.

Turnover for the week was a low flying 5,100 shares for a value of Lm6,984. At the end of the session, best bids were for 900 shares at Lm1.36 and offers for 600 shares started at Lm1.386.

FIMBank plc (FIM) started the week unchanged at US$1.74, trading at this price on Monday, Tuesday and at Thursday's open. It then advanced to $1.75 and $1.77 on the back of the good results released shortly before trading started.

The boost in profits (see below) propelled the price to progressively higher levels on Friday as FIM climbed from a $1.77 open to a top-of-the-range close of $1.867. This very healthy 7.3% gain on the week made FIM the week's top performer, on a turnover of 105,009 shares for a value of Lm61,170.

On Thursday FIM published the group's consolidated financial statements for the year ended December 31, 2006. The operating profit, per se, was nothing spectacular, increasing by a bland 3.7% to $2.125 million. What sent the pre-tax profits into orbit was the $2.55 million generated by one of FIM's associates, Global Trade Finance Ltd.

This in turn made for a brilliant overall increase in profits before tax of 58.9% to $4.68 million, with the basic earnings per share increasing from 3.34 US cents to 8.83 US cents - a spectacular 164%. The board is recommending the payment of a scrip dividend of $3.04 million, i.e. 3.5244 US cents per ordinary share.

Shareholders on the books on Wednesday, i.e. those who bought the shares by close of Friday's trading, will be entitled to this dividend. The attribution price for calculating the scrip dividend will be calculated after Wednesday.

Simonds Farsons Cisk plc continued to gain ground, rising 1.2% to 84c - its highest level since April 2006 - with a single 3,459 share deal for the week on Tuesday.

GlobalCapital plc gained 1c to Lm2.01 on low volume on Tuesday and picked up another cent to Lm2.02 on Friday to end the week 1% ahead. International Hotel Investments plc dropped nearly one euro cent at €1.112. Volume was restricted to just one deal for 4,961 shares.

Plaza Centres plc was stable at 71c in the week's single deal for 912 shares. Middlesea Insurance plc also traded unchanged at Lm1.98: it was active on Monday and Thursday in low turnover, which totalled just 2,840 shares. Medserv plc was similarly static, flat at Lm1.42. It only traded on Friday on turnover of 5,150 shares.

On the Alternative Companies List (ACL), Datatrak plc traded at 24c5 on Monday and gained 1c to 25c5 on Tuesday - to close the week with a 4.1% gain - the week's second best performer.

The Government bond market, in sync with the equity market, had its best week since the week starting May 8, 2006. Turnover by value was a sliver below the Lm9 million mark. The busiest bond was the 7.5% MGS 2011, accounting for 47% of the total.

In the corporate bond market turnover was a bare Lm35,525, spread over 16 deals.

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