MSE Index drops 1.2%

The Malta Stock Exchange Index (MSE Index) moved 1.2 per cent lower on share price losses registered in three of the nine active equities during the week. The MSE Index thus closed at 4,846.75 points. HSBC Bank Malta, Bank of Valletta and FIMBank ended in negative territory while Grand Harbour Marina and Malta International Airport were the two top performers of the week. A total of 232 deals were executed in the equity market for a total turnover of Lm607,309, while 36 transactions were placed in local bonds and government stocks for a value over Lm2.37 million.

HSBC Bank Malta dropped 3.8 per cent on a weekly basis as its shares started being traded "ex-div" this week. Volume traded was high with nearly 90,000 shares changing hands across 97 deals to close at Lm1.91. The weekly high and low prices traded at were Lm1.94 and Lm1.87 respectively.

Bank of Valletta shed 0.3 per cent to close one cent lower at Lm3.59. This was attained on a volume of 33,170 shares which were traded over 38 transactions. FIMBank also closed in the red having dropped 0.5 per cent to US$1.95 as 85,333 shares were transacted across nine transactions.

During the week, Lombard Bank approved and issued the group and bank unaudited condensed interim financial statements for the six-month period ended June 30. Lombard Bank registered a pre-tax profit of Lm2.09 million for the six months, representing an increase of 26 per cent over the same period last year. It was also noted that operating income increased by 8.3 per cent (to Lm3.08 million) over the prior year, net interest income increased by 8.8 per cent over the same period last year, while loans and advances to customers were up 13.3 per cent over December 31. Notwithstanding this, the equity was not traded during the week.

On the other hand, Grand Harbour Marina was the top equity performer on a week-on-week basis. The equity climbed 3.8 per cent to 78c, however, this was attained on a single deal of 7,100 shares. Malta International Airport gained 1.5 per cent to close at Lm1.37 on a volume of 10,700 shares transacted across 13 deals while Maltacom was also among the positive performers on a weekly basis gaining 1.4 per cent. This latter equity closed two cents higher from the previous week at the Lm1.44 level.

In addition, Plaza Centres' shares were also actively traded during a week in which it issued its half-yearly report for the period ended June 30. The equity gained 1.5 per cent on a volume of 85,333 shares spread across nine transactions and closed at 69c. As noted in the statements, the company's turnover stood at Lm339,522 (2006: Lm313,031), operating profit increased to Lm228,388 (2006: Lm204,310) whereas profit before tax amounted to Lm238,917 (2006: Lm211,894).

Moreover, International Hotel Investments shares were up nearly one per cent following the €0.01 gain to €1.04. Nine trades were executed in the equity during the week with a total of 44,500 shares changing hands. A single deal of a mere 500 shares was also executed in Simonds Farsons Cisk at the stable price of Lm1.

In the local corporate bonds market, a total of 31 transactions were performed across 16 different bonds for a total turnover of Lm132,336. The most active bond was that of Gasan Finance that pays 6.4 per cent, in which registered a traded value of Lm64,686 was registered causing its price to move up to Lm100.55. With regard to Malta Government Stocks, a traded value of over Lm2.23 million was registered across 17 different stocks. The highest volumes were recorded in the 5.7 per cent MGS 2012 and 7.8 per cent MGS 2018 with the total turnover in these stocks amounting to nearly Lm2 million.

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. 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 please contact JFMS at 67/3, South Street, Valletta or on tel: 2122 4410.

jmizzi@jmfs.net