This week the Malta Stock Exchange index closed at 3361.767 points, at a loss of 1.40 per cent over last week. Since the beginning of the year the index has now lost 31.92 per cent. During the week 11 equities were negotiated, with eight equities closing in negative territory, one closing in positive territory and two remaining stable. Shares of Malta International Airport plc lost most territory as they dropped by 7.27 per cent to €2.55 while shares of Santumas Shareholding plc gained most ground during this week with an increase of 3.33 per cent to €3.10.
A total of 194 deals were registered on the stock exchange for a turnover of over €10.2 million. In the equity market 100 transactions were carried out for a total value of €361,993. In the corporate bond market 36 transactions for a total value of €294,579 were carried out, while in the government bond market 34 transactions were executed for a value of over €1.4 million. Twenty-three transactions were carried out in the Treasury bills market for a value of over €8 million.
During this week the banking sector was dominated by the issue of the full-year financial results of Bank of Valletta plc. Yesterday, the board of directors of Bank of Valletta approved the September 2008 full-year results and recommended a final gross dividend of €0.0675 per share (net dividend per share of €0.0439) to all shareholders on the register of members as at close of trading on Wednesday, November 5. The shares will trade ex-dividend as from Thursday, while the dividend will be paid on December 18, if approved at the annual general meeting. The board is also recommending an increase in the nominal and paid-up value of the ordinary shares (from €0.75 to €1 per share) as well as a bonus issue of one share for every five shares held. Shareholders as at close of trading on January 12, 2009, will be entitled to this bonus share issue.
During the financial year which ended September 30, the BoV Group generated a pre-tax profit of €40.6 million, which is 60 per cent lower than that of last year. This was mainly due to the unrealised fair value markdowns totalling €41 million, of which €14 million arose in the last two weeks of the financial year. This besides a direct charge of €12.7 million on Lehman Brothers investments held by the Group following their failure in mid-September 2008. As the market awaited these results the share price of Bank of Valletta plc remained stable this week at €3.40, even though 43,548 shares changed hands across 43 deals. The equity on Friday traded at a low of €3.35 but recovered to €3.40.
Likewise the share price of HSBC Bank Malta plc remained stable at €2.90 as 31,219 shares changed hands across 30 transactions, having traded at €2.85 yesterday.
On the negative side, the share price of Lombard Bank Malta plc dropped slightly by 0.03 per cent to €2.947 as 15,400 shares changed hands across four deals. In an interim statement issued by Lombard Bank Malta plc, the directors stated that they are satisfied with the performance of the bank and its subsidiaries. The Lombard Group remains well positioned to achieve its projections for the financial year ending December 31.
FIMBank plc saw its share price decrease by 1.25 per cent to $1.58 on a single deal of just 1,750 shares.
This week the share price of Middlesea Insurance plc fell by €0.05 to a low of €2.70 on six deals for a total volume of just 853 shares. The share price of Grand Harbour Marina plc dropped by 2.33 per cent to €2.10 as 5,000 shares changed hands across two deals.
The share price of Go plc dropped by 4.95 per cent to €1.901, a multi-year low last reached in December 1998, as three deals were executed for a total volume of 4,135 shares. International Hotel Investments plc saw its share price decrease by 2.89 per cent to €0.94 as 32,243 shares changed hands across four deals.
The share price of RS2 Software Plc dropped by 2.60 per cent to a low of €0.75 on a single deal of 2,000 shares.
This, in spite of the announcement made recently of the deal signed between one of RS2's existing service providers EDB and OK-Q8, Sweden's largest chain of petrol stations.
Furthermore, there was a more recent announcement in relation to the signing of a three-year comprehensive licence and service package agreement with Croatian postal bank Hrvatska Postanska Banka.
On Wednesday Plaza Centres plc issued an interim directors' statement in which it was announced that the occupancy levels during the third quarter which ended on September 30 remained high at 96.8 per cent. It was also stated that the financial position of the company is satisfactory and in line with projections and exceptions.
However, the equity remained inactive during the week with a share price of €1.75.
This article, compiled by Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents thereof 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.