Financial news

Trading activity on the Malta Stock Exchange was relatively subdued during the end of the week session, with the MSE Index closing lower by 0.5 per cent to read 3,361 points. Just three local banking equities were active through the day with an aggregate trading value of €105,489 spread over 19 deals.

Bank of Valletta was the most liquid component with a total of 14,531 shares being exchanged across 12 transactions. The equity traded down to an intraday low of €3.35, only to recoup some of this decline to end the session at €3.40, which equates to a drop of 9c or 2.6 per cent over its previous traded level.

Following the close of the session, in a much awaited company announcement, the bank reported a pre-tax profit for the year ending September this year of €40.6 million, a decrease of 60 per cent when compared to the comparable period last year. The board deemed the results as respectable in the contest of the unprecedented worldwide financial turmoil.

The bank's directors are proposing a gross final dividend of 6c75 per share which together with the interim dividend of 13c5 amounts to 20c25 per share for the full year. The board is also recommending, effective 15th January next year a bonus issue of one share for every five shares held and furthermore, through the capitalisation of reserves, an increase in the nominal and paid up value of all ordinary shares from €0.75 to €1.00 per share.

Lombard Bank Malta saw a reduction by the slightest of margins with a turnover of 15,400 shares transacted over four deals to close at €2.947. The day's only non-mover was HSBC Bank Malta, with 3,850 shares exchanged over three trades all done at €2.90.

In the fixed interest sector of the market, activity was spread across four corporate bonds and two government stocks. The 4.6 per cent HSBC Bank Malta 2017 attracted the highest turnover, with 103,000 nominal, as it closed lower by 0.53 per cent to €95.49. The 7.8 per cent MGS 2013 had 83,159 nominal swapped over a sole transaction, pushing the price up to close at €116.69.

MSE weekly report

During the past five sessions, local investors remained focused on the banking sector ahead of Bank of Valletta's full year results which were announced following the close of yesterday's trading session.

Bank of Valletta closed Friday's session unchanged on the week at €3.40. The bank announced pre-tax profits of €40.6 million for the full year ended September 30. All shareholders on the company's register as at November 10 will be entitled to receive a gross final dividend of 6c75, while a bonus share for every 5 shares held will be distributed to shareholders on January 15, next year.

Elsewhere in the banking sector, HSBC Bank Malta also closed the week unchanged at €2.90, while Lombard Bank Malta declined slightly to €2.947.

FIMBank attracted a solitary deal that resulted in a drop to the $1.58 level.

Malta International Airport was this week's worst performer as the monopoly operator dropped 7.3 per cent down to €2.55.

Go declined almost five percentage points down to €1.901, its lowest level since mid-July 2003.

International Hotel Investments shed 2.9 per cent to €0.94, while RS2 Software drifted lower by 2.6 per cent touching an all time low of €0.75.

Santumas Shareholdings gained 3.3 per cent and climbed to a record high of €3.10, while to the contrary Grand Harbour Marina shed 2.3 per cent and Middlesea Insurance lost 1.8 per cent to close the week at €2.10 and €2.70 respectively.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.