BOV announces 'a marked improvement in profitability'

The Malta Stock Exchange Index (MSE) closed at 3,933.865 points, losing 5.38 per cent on the week and now over 20 per cent year to date. During the week, 11 equities were negotiated, with five equities closing in negative territory, just two in positive territory, whilst the rest remained unchanged. During the week, FIMBank plc was the best performer while HSBC Bank Malta plc lost most ground.

A total of 272 trades were registered on the stock exchange for a turnover of over €9.95 million, including put-through trades for a value of €13,784. In the equity market 174 deals were executed for a value of €585,437, while in the corporate bond market 29 deals were carried out for a total value of €327,540. In the government bond market, 45 deals were executed for a total value of over €6.12 million. In the Treasury Bills market 18 deals were executed for a total value of over €2.89 million.

In the banking sector, the share price of HSBC Bank Malta plc lost most ground during the week after the announcement of the results for the first six months of the year. The equity closed at €3.25, falling by €0.55, or 14.47 per cent, on a turnover of 87,327 shares traded over 98 deals. HSBC now fell by just over 33 per cent from the beginning of the year. During the week the equity traded at a high of €3.70 and a low of €3.25.On Thursday the share price closed in positive territory but fell again yesterday. On the other hand, the share price of FIMBank plc gained 0.53 per cent from last week, as it closed at USD1.885, as 56,821 shares traded over 10 deals.

Bank of Valletta plc experienced a decrease in its share price, closing the week at €4.50, therefore decreasing by 2.60 per cent on the week, or by €0.12, on a turnover of 27,224 shares traded over 31 deals. In a company announcement this week, Bank of Valletta has reported a marked improvement in profitability during the third quarter of the company's financial year, when compared (on a pro-rata basis) with the financial results for the first six months through to March 31. The board of directors are expecting that the results for the second half of the current financial year will show a significant improvement over those reported in the first half, subject to the volatility in the equity markets not spreading to the fixed income sector. The board added that overall, conditions prevailing in the banking sector, both domestically and internationally remain extremely challenging.

Grand Harbour Marina plc was the only other gainer of the week. The equity closed at €2.30, therefore experiencing a 0.22 per cent rise on the week, as 10,000 shares changed hands over just one deal, with a turnover of €23,000.

MaltaPost plc registered a loss in its share price of 2.60 per cent, closing the week at €0.75, with 4,000 shares changing hands on three deals. GlobalCapital plc also lost some of its share price during the week. The closing price was €2.444, €0.056 less than last week, with just 1,000 shares changing hands on three deals. Another equity which lost some of its share price was Plaza Centres plc as the equity closed the week at €1.70, 1.73 per cent less than last week. Plaza traded once as 1,000 shares changed hands.

International Hotel Investments plc maintained last week's share price of €1.06, with 22,671 shares changing hands over 11 deals. On the other hand, Middlesea Insurance plc traded just 405 shares over two deals. The equity closed at €3.34, therefore maintaining last week's closing price. Go plc also retained last week's share price, as it closed the week at €2.51, as 15,520 shares changed hands over 13 deals. Crimsonwing plc registered last week's share price. The equity closed at €0.53, as 10,000 shares changed hands over just one deal. During the week Crimsonwing plc issued the preliminary results for the financial year to March 31. The financial results report a positive performance for the company with an increase of 35 per cent in revenue to €9,552,567. The net profit before income tax for the year was €909,324, a strong performance considering a loss of €375,513 the company suffered in the last quarter because of the decline in the sterling when compared to the euro. The announcement reports an increase of 62 per cent to shareholders' funds to €3,972,009, with a year performance showing an overall return on shareholders' funds of 20.4 per cent. In the past year Crimsonwing has continued to invest in new markets, such as North America, Germany, Austria and Switzerland.

During the week, the Treasury has announced the prices for the upcoming issue of Malta Government Stocks. The 5.1 per cent MGS 2014 (III) F.I. is going to be issued at €99.45 with a yield to maturity of 5.21 per cent whereas the five per cent MGS 2021 (I) F.I. is going to be issued at €97.20 with a yield to maturity of 5.30 per cent. Applications will open at 8.30 a.m. on Monday and close on Wednesday at 5 p.m.

The Mediterranean Investments Holding plc. bond issue closed on Monday, a few hours after the opening of subscriptions.

This article, which was compiled by Jesmond Mizzi Financial Services Ltd (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 JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jmizzi@jmfs.net.