Reporting season in full swing

It was a busy week on the Exchange both on the reporting front and on the trading. The market was inundated with a plethora of company announcements, which included four companies releasing their annual financial results and BoV announcing their interims.

On the trading side, equity volume picked up considerably to yield the year's third best week with turnover a hair's breadth off Lm900,000. The small cap stocks took the podium, with Grand Harbour Marina plc (GHM) claiming gold up by 7.9%, GlobalCapital plc (GCL) took silver with a 6.2% gain and Medserv plc (MDS), up 2.1%, claimed bronze.

HSBC Bank Malta plc (HSB) came a very close fourth, up 2.08% closing at Lm1.96 after hitting an intra-day high of Lm2 on Friday. Disappointingly, the week's biggest loser was Maltacom plc (MLC), down 2% to Lm1.47.

Bank of Valletta plc (BOV)'s first deal for the week was at Lm3.625. It inched ahead to Lm3.63 by the second deal, trading at this price till the close. For the rest of the week it dillydallied between Lm3.629 and Lm3.63, closing at the latter price, practically unchanged, up 0.1% for the week.

Total turnover amounted to 26,301 shares for a value of Lm95,458. At the end of the week, total bids for 275 shares were at Lm3.60, and offers of 413 shares started at Lm3.63.

On Friday afternoon BOV released a truly outstanding set of half-yearly results for the period ending March 31, 2007. They lived up to chairman Roderick Chalmers' "under-promise and over-perform" unstated policy. The group registered a pre-tax profit of Lm24.3 million, up an exceptional 29.2% over the same period last year.

Contributory factors include: an increase in net interest income of Lm3.5 million, a Lm3.1 million reduction in the impairment charge, and growth of 13.8% in net exchange, fees and commission income. Operating income increased by 10% to Lm39.3 million, and total costs increased by 2.5% to Lm16.2 million.

Earnings per share (EPS) increased by 25.6% from 11c7 to 14c7. A gross interim dividend of 6c75 will be paid to shareholders on the Register on May 10, i.e. those who acquire shares by next Friday.

HSB enjoyed an excellent week. On Monday it started where it left off, at Lm1.92, gingerly advancing to Lm1.925. On Tuesday it continued cautiously ahead, from a Lm1.925 open to a Lm1.935 close, progressing steadily from Lm1.935 to Lm1.95 on Wednesday.

Thursday still saw it resolutely up, closing at a two-month high of Lm1.97. Friday's aggressive buying at the initial stages carried the price up to the Lm2 mark. However, the momentum was not sustained and HSB slid back, closing the day at Lm1.96.

Nonetheless, this was a 2.08% increase on the week, which saw a total 92,848 shares traded for market value of Lm181,860. At the end of trading, bids for 600 shares were at Lm1.95, and the best offer for 780 shares stood at Lm1.96.

On Monday HSB announced that at the previous Friday's AGM all Ordinary Resolutions on the agenda were approved, together with an Extraordinary Resolution related to insurance business.

The following were appointed/ elected on the board of directors - Albert Mizzi (chairman), Shaun Wallis, Sally Robson, David Budd, Charles J. Farrugia, Dr Philip Farrugia Randon, Sonny Portelli, Victor Scicluna and Peter Paul Testaferrata Moroni Viani.

MLC was just a whisker off its previous week's closing price, trading at Lm1.499 on low turnover of 2,450 shares on Monday. Volume increased on Tuesday with the bulk of the deals effected at Lm1.50.

MLC however wobbled to Lm1.499 and Lm1.498 in the final few trades. Wednesday saw the heaviest trade with 67,285 shares traded between Lm1.499 and the closing price of Lm1.50 while Thursday's quieter session closed at Lm1.495.

After opening Friday at Lm1.49, MLC lost ground as one sale order for 6,800 shares dragged the price to Lm1.47 to close the week 2% lower. Turnover for the week was the busiest since early June of 2006 with 117,635 shares changing hands for a value of Lm176,134.

At the end of trading, best bids totalled 1,000 shares at Lm1.43, with a supply of 5,307 shares at Lm1.48.

Malta International Airport plc (MIA) skidded to Lm1.34 on Monday, pulled down by selling pressure, recovering to Lm1.362 on Tuesday, albeit on a single deal for just 251 shares. It however was back at Lm1.34 on Wednesday.

On Friday the first trade was matched at Lm1.34 and the second and last deal was effected at Lm1.362, to end the week 0.6% lower. At the end of the session, best bids were for 4,750 shares at Lm1.34 and offers for 449 shares started at Lm1.362.

FIMBank plc (FIM) was again steady at $1.95 on Monday. Volume was particularly strong with 191,800 shares changing hands. It did not trade on Tuesday but an impressive 208,342 shares were negotiated on Wednesday as the price climbed to a 2007 high of $1.98.

A company announcement released on Wednesday afternoon stated that the board will not pursue Burgan Bank's offer to acquire a substantial shareholding in FIM. Despite the satisfactory conclusion of due diligence procedures, no agreement could be reached with regard to the level of "substantial shareholding".

This dampened buyer's enthusiasm as just 1,700 shares traded on Thursday, down to $1.95. It did not trade again to end the week unchanged. Unusually, FIM accounted for the largest slice of the week's total turnover: 401,842 shares traded for a value of Lm248,196. This was equivalent to 27.6% of the week's total.

GCL started the week on a very negative note, plunging from Lm1.721 to Lm1.66, to end Monday 6% below the previous week's close. Turnover for this small cap stock was fairly heavy with 60,600 shares trading for a value of just over Lm100,000.

However, it bounced back to Lm1.751 on Tuesday, shooting up to Lm1.88 by Wednesday's close on thin trade, to end the week 6.2% ahead.

Middlesea Insurance plc (MSI) fell to a new 2007 low of Lm1.85 on Thursday, the only day it traded. This equity thus continued its downward spiral unabated, ending the week in the red for the sixth consecutive week.

Thursday also saw the release of the company's annual results for the year ended December 31, 2006. Profits before tax were down by a substantial 44% to Lm3.7 million from Lm6.5 million in 2005. EPS also fell by a significant 34% from 19c3 to 12c7.

The board is proposing a final dividend of 4c5 per share to shareholders on the Register at the close of business on May 28, i.e. those who buy by May 22.

Early on Wednesday morning, GHM announced the execution of a conditional agreement by Camper & Nicholsons Marina Investments Ltd to purchase and acquire from various shareholders a 50% equity interest in the company, together with put and call options for a further 20% equity interest - all at 56c per share. The exercise of the conditional call and put options for the additional 20%, would trigger a mandatory bid offer for the remaining 30% of GHM listed shares.

Consequently, this equity was a hive of activity, zooming ahead by 7% to the top of the allowable range of 74c9. Turnover was strong with 51,490 shares traded.

Thursday was much quieter, but the price continued to soar, reaching an all-time high of 75c5. It did not trade on Friday to end the week a stomping 7.9% higher. GHM also announced that the board is scheduled to meet next Friday to consider and approve the final audited accounts for the year ended December 31, 2006.

After a three-week break, MDS traded on Tuesday, unchanged at Lm1.42. It started Wednesday at this price, accelerating to an all-time peak of Lm1.45 in the final deal. It did not trade again to end the week 2.1% up.

Simonds Farsons Cisk plc (SFC) only traded on Monday with the price stable at 85c. On Wednesday the company published its financial statements for the year ended January 31, 2007.

Pre-tax profit nearly doubled from Lm487,000 to Lm969,000. The EPS increased by 24%, from 2c9 to 3c6. The board will recommend the distribution, out of tax-exempt profits, a net final dividend of 1c65278 per share to shareholders on the Register on May 31, i.e. those who buy shares by May 25.

On Monday, International Hotel Investments plc (IHI) released its annual results for 2006. These show an 11% increase on turnover, resulting in a gross profit of €21.3 million - equal to an 18.6% increase over 2005.

An impairment loss of €7.15 million was charged to the accounts relating to the Corinthia Lisboa Hotel as a consequence of the lower value attributed to this hotel property by an independent expert. The group registered a loss before tax of €10.7 million when compared to a profit before tax of €757,319 registered in 2005.

The loss per share grew from -1c to -7c. IHI did not trade till Wednesday when it was stable at €1.12, rising to €1.134 on Thursday. However it closed the week down, falling to €1.10 during Friday's slow trading.

Plaza Centres plc (PZC) traded for the first time since March 29 on Tuesday, falling 2% to 70c on a 2,000-share deal. It advanced minimally to 70c5 on Thursday, closing the week at this level, 1.4% lower.

On the same day, PZC announced that at the AGM all resolutions were approved. Following the resignation of Mark Gasan as director, Michael Soler was elected. The board will consist of: Albert Mizzi (chairman), Peter Borg, Brian Mizzi, Mr Soler, Adrian Strickland, Anne Marie Tabone and Gerald J. Zammit.

On Thursday Lombard Bank Malta plc announced that at the AGM all ordinary resolutions were approved. The board of directors will be made up of: Mr C. Lemmerich (chairman), Mr J.M. Demajo, Mr G.A. Fairclough, Mr G. Maiga, Mr J. Said, Mr S. Loffredi and Mr M. Zammit.

Datatrak plc traded unchanged at 27c in a single deal for 4,108 shares on Wednesday. On the same day, the company published its results for the year ended December 31, 2006. These show a marginal drop in revenue of 0.7% to Lm1.4 million.

Costs decreased by 8% taking the profit before tax to Lm107,856 from Lm3,387 in 2005. The basic loss per share remained unchanged at -0c5. The board resolved not to declare a dividend, and announced that the AGM will be held on June 1.

In the Government bond market turnover by value reached Lm780,098 with 15 issues traded. The corporate bond market slowed down with 26 deals completed for a total turnover value of just over Lm85,000. In the treasury bill market, the turnover totalled Lm840,591.

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