IHI moves ahead as MSE falls again

The Malta Stock Exchange (MSE) Index declined 0.8 per cent this week as foreign markets staged a comeback not withstanding three consecutive positive sessions on Tuesday, Wednesday and Thursday. During the week twelve equities were active, half of which closed in negative territory while only three equities closed in positive grounds and the other three closed unchanged. The three local large caps - HSBC Bank Malta (HSBC), Bank of Valletta (BOV) and Maltacom - all registered losses during the week, as 324 transactions were executed on the regular equity market with 798,730 shares changing hands for a total turnover of Lm806,805.

BOV's shares declined by 1.91per cent from last week's closing price. Activity remained thin in the equity with a mere 25,273 shares changing hands across 54 transactions. It was yesterday's session that proved to be detrimental to the share price after losing 6c9 following a relatively stable week. The share had edged 0c5 lower on Tuesday to recoup the same loss in the following session. In Thursday's session the equity registered a marginal drop of 0c1 with the last session seeing its price head downwards by 6c9 to close the week 7c lower at Lm3.60.

HSBC was the most actively traded equity of the week slipping by 0.52 per cent from last week's closing price. In total 155,357 shares were traded across 142 transactions during the week, with the equity declining to a low Lm1.88 level in Monday's session, this representing a 4 per cent drop. Throughout the rest of the week the equity managed to recoup such loss, gaining back 2c on Tuesday, 1c5 on Wednesday and 0c5 on Thursday. In Friday's session the equity however shed 1c to close at the Lm1.91 level. Within the same sector, Lombard Bank was also active trading a mere 400 shares across three transactions, to remain stable on a weekly basis at the Lm5.00 level.

On Thursday, the Board of Directors of Lombard approved the Preliminary Statement of annual results for the financial year ended December 31, 2006 and also further resolved to recommend that the AGM (to be held on April 25, 2007) approves the payment of a final ordinary gross dividend of 12.5 cents per share (8.125 cents per share net of tax). This would imply a 25 per cent increase over last year's dividend, when taking into account the share split of May 2006. Moreover, as noted from the statement, the profit before tax was Lm3.87 million for the year ended December 31, 2006, representing an improvement of 5.5 per cent over the previous year's Lm3.67 million figure. The record profits registered however had no impact on the equity price.

Remaining in the banking sector, FIMBank's shares gained 1.41 per cent over last week and closed at US$1.875. Activity was relatively strong in the equity as 455,560 shares changed hands across 45 transactions. During the week, FIMBank's Board of Directors announced that it considered and accepted the terms of an offer dated February 10, 2007, received from Burgan Bank, Kuwait (the "Prospective Investor") to acquire a substantial shareholding (not less than 33 per cent) in the Company at US$1.70 per share by means of an issue of new shares for cash.

FIMBank and the Prospective Investor have since discussed and agreed to the commencement of due diligence procedures. The acceptance of the offer from the Prospective Investor is subject to completion of the due diligence exercise, regulatory approvals being obtained by the competent authorities in both Malta and Kuwait.

Back to trading on the local stock exchange, Maltacom closed in negative territory, losing 3.4 per cent and ending the week at Lm1.41. Within the first two days of the week the equity lost 1c, however Thursday's session saw its share price drop sharply by 5c to recoup 1c in the last session of the week. This was all attained across 26 transactions with over 40,000 shares changing hands.

Negative performances were also registered in Middlesea Insurance down 1.5 per cent closing at Lm1.95, Malta International Airport down 0.7 per cent ending the week at Lm1.38 and Simonds Farsons Cisk 2.4 per cent lower closing at 82cents. In total 1,808 shares were traded across five transactions in Middlesea Insurance, while 1,484 traded also across five transactions in Simonds Farsons Cisk. Activity in Malta International Airport was higher with 15,170 shares changing hands across 15 transactions.

On the other hand, International Hotel Investments was the week's top equity performer increasing by 4.48 per cent and ending the week at o 1.165. Over 78,000 shares were traded during the week, with Thursday's session being the most positive, as the share price registered a o 0.061 daily rise and thus pushed the equity into positive territory.

For the first time, Grand Harbour Marina shares were traded on the stock exchange with its share price gaining 2.86 per cent and closing at the Lm0.72 level.

Trades were also recorded in Plaza Centre and Datatrak holdings shares however both equities remained stable at 71cents and 26c5 respectively.

GlobalCapital p.l.c. announced yersterday that a meeting of the Board of Directors has been set for Friday March 23, 2007, to consider and approve the financial year ended December 31, 2006. The Board of directors is also expected and decide on the recommendation of a dividend to the Company's shareholders at the forthcoming Annual General Meeting.

During the week no activity was recorded in GlobalCapital (Lm2.02), Medserv (Lm 1.42) and San Tumas Shareholding (Lm1.15).

Trading in the bond market totalled just over the LM1 million mark with minimal trading in corporate bonds.

This article which was compiled by Jesmond Mizzi Financial Services Limited (JMFS) does not intend to give investment advice and the contents therein should not be construed as such. Readers are encouraged to seek professional advice regarding their personal financial situation. The value of investments can go down as well as up. Past performance is no guarantee for future performance. Jesmond Mizzi Financial Services Limited is licensed to conduct investment services by the Malta Financial Services Authority. 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 please contact JFMS at 67/3 South Street Valletta or on tel: 21224410 or email jmizzi@jmfs.net