Treasury announces issue of Malta Government Stocks

This week the Malta Stock Exchange Index (MSE) closed at 4,358.269 points, a loss of 2.21 per cent over last week and year to date the MSE lost 11.74 per cent. During the week, 12 equities were negotiated, with one equity closing in positive territory, nine in negative territory and two remaining stable. During the week International Hotel Investments plc was the best performer while Grand Harbour Marina plc lost most territory.

A total of 224 deals were registered on the stock exchange for a turnover of over €17.6 million. In the equity market 161 transactions were carried out for a total value of €506,304. In the corporate bond market 22 transactions for a total value of €145,843. In the government bond market there were 22 transactions were executed for a value over €12 million. Nineteen transactions were carried out in Treasury bills for a value of over €4.9 million.

Both Bank of Valletta plc and HSBC Bank Malta plc continued with the trend adopted this year and closed the week in negative territory. The share price of Bank of Valletta plc dropped by 1.98 per cent to €4.95 as 45,686 shares changed hands across 58 deals. The share price of HSBC Bank Malta plc dropped by 4.60 per cent to €3.94 as 37,833 shares changed hands across 52 deals. Lombard Bank Malta plc suffered a drop of 3.49 per cent in its share price as it closed at €3.127.

FIMBank plc remained stable over the previous week as its share price closed at $1.88 despite 8,300 shares changing hands. On Wednesday, following the annual report and audited financial statements of the FIMBank Group for 2007, in an interim directors' statement, the directors stated that during the period under review the financial position of the group has remained sound and the performance to date suggests that the strategic choices made by the company, including the planned diversification through new investments, have been the right ones.

International Hotel Investments plc saw their share price increase by 1.40 per cent from €1.07 to €1.085 as 15,790 shares changed hands on four deals. On Tuesday International Hotel Investments plc issued an interim directors' statement where it was stated that revenues for the first quarter of 2008 amounted to €24.72 million for six properties while the corresponding figure for 2007 on four properties amounted to €10.99 million. Gross operating profit went up to €7.28 million from €1.29 million in 2007.

Go plc saw its share price decrease by 1.69 per cent from €2.95 to €2.90 on 10 deals for a total of 7,990 shares. Yesterday Go announced that during an EGM held on Wednesday, Forthnet has announced that the EGM approved an increase in the issued share capital of the company up to the amount of €137,556,721.74 with pre-emption right in favour of the shareholders who will hold shares in the company until and including the last business day prior to the ex-rights date which date will be determined and announced by the board of directors. The capital increase shall be made through the issuance of 116,573,493 new common registered shares, of a nominal value of €1.18 per share, at an offer price per new share of €2.57 ("offer price") and with a ratio of three new shares for every existing share. Forthnet announced that it is expected that the cash proceeds from the increase will amount to €299,593,877.01.

The share price of Simonds Farsons Cisk plc dropped by 1.1 per cent to €2.70 on two deals as 600 shares changed hands. The share price of GlobalCapital plc dropped by 5.54 per cent to €3 on a single deal of 400 shares. The share price of Grand Harbour Marina plc dropped by 10.87 per cent from €2.30 to €2.05 on two deals as 10,000 shares changed hands. The share price of Crimsonwing plc dropped by two per cent to €0.54 as 8,812 shares changed hands on three deals. MaltaPost plc saw a decrease of 6.25 per cent in its share price as it closed the week at €0.75 as a result of 10,322 shares changing hands on eight transactions. The share price of Malta International Airport plc remained stable at €3.35 as 3,800 shares changed hands during the week.

At the beginning of the week, Plaza Centres plc issued an interim directors' statement stating that, from January 1 to date, there were no material events and/or transactions which may have had an impact on the financial performance of the company. The financial position of the company remained sound and the performance of the company is in line with the directors' expectations and the trend reported by the company in its audited financial statements for the year ended December 31, 2007. No trades were carried out in the equity during the week.

On Tuesday, Medserv plc issued an interim directors' statement where it stated that, as reported in the chairman's statement accompanying the audited financial statements for the financial year ended December 31, 2007, the company experienced an increased activity during the latter half of last year which has continued during 2008 to date. Equipment and materials have started reaching Medserv's bases in Malta and Misurata, Libya, in preparation of exploration activity offshore Libya. The first quarter results show that both bases produced satisfactory profits in each of the first three months of 2008 and present indications are that this level of profit will continue for the remainder of the current financial year. Furthermore, the business generated from operations in Egypt and Tunisia also resulted in improved turnover levels. Medserv plc was not active during the week.

Today the Treasury published a prospectus in relation to the issue of two fungibility issues of Malta Government Stocks for a total aggregate amount of €100 million and an over-allotment option of up to a further €50 million. Proceeds will be used for general funding purposes of the Government of Malta and to refinance the redemption of the €23.3 million 7.2 per cent MGS 2008 on June 10. Subscriptions are due to open on May 26 and close on May 30. The Public has the possibility to apply in any of the issues at up to a maximum amount of €100,000 (nominal) per application. A tendering process shall apply for applications in excess of €100,000 (nominal).

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