Low activity in local equities

This week, the Malta Stock Exchange index closed at 3,336.314 points, at a loss of 0.16 per cent over last week. Since the beginning of the year, the index has now lost 32.44 per cent. During the week, nine equities were negotiated, with three equities closing in negative territory, one closing in positive territory and five remaining stable. Shares of Grand Harbour Marina plc lost most territory as its share price dropped by 5.26 per cent while Datatrak Holdings plc was the only positive equity gaining 3.33 per cent.

A total of 181 deals were registered on the stock exchange for a turnover of over €3.7 million. In the equity market 74 transactions were carried out for a total value of €245,875. In the corporate bond market 60 transactions for a total value of €586,327 were carried out, while in the government bond market 29 transactions were executed for a value €860,126.

The prices of Malta Government Stocks continue to rise in line with declining European yields. Eighteen transactions were carried out in the Treasury bills market for a value of over €2 million.

In the banking sector which remained the most active during the week all equities remained stable in relation to the price of last week. The share price of Bank of Valletta plc remained at €3.60 as 24,910 shares changed hands across 30 deals. HSBC Bank Malta plc remained at €2.92 as 36,822 shares changed hands across 29 transactions. Lombard Bank Malta plc also remained stable at €2.948 as 1,673 shares were negotiated across two deals. FIMBank plc closed at $1.40 when six transactions were executed for a total volume of €22,500.

During this week, the share price of Malta International Airport plc lost 3.39 per cent as it closed at €2.25 on a single deal of 800 shares. On Monday, Malta International Airport plc announced that following the publication of the unaudited financial statements for the six months ended June 30, no material events and/or transactions have taken place that would have an impact on the financial position of the company. The interim directors' statement outlined that during the period under review, the financial position of the company has remained sound. For the second half of the year, passenger traffic has been less than anticipated. For the period July to October passenger traffic was down by 1.1 per cent over the same period last year and they anticipate this downturn will continue throughout winter 2008/09. Having said that, the company still expects the passenger throughput for 2008 to exceed 3,100,000 passengers, which is approximately five per cent more than last year.

On Tuesday, Grand Harbour Marina plc dragged the index lower on a single deal of 1,000 shares as its share price dropped by 2.70 per cent. The equity closed the week at €1.80 as 7000 shares changed hands.

Datatrak Holdings Plc traded once at €0.31 as 1000 shares changed hands in one transaction. On Wednesday, the board of directors of Datatrak Holdings Plc issued an interim directors' statement whereby they said that, as announced by the company during the last AGM, the group is now structured having distinct business units, each addressing a particular market offering and clearly delineating the core business activities of the group. The company stated that, internationally, the group's strategy of geographical market diversification came into being in the third quarter of 2008, with conclusion of the first non-UK based contracts. Such diversification should allow the group to minimise exchange rate risk and possibly dilute as much as possible, effects of the international economic slow-down.

In the third quarter, other local revenues generated from projects and services (such as the Vessel Monitoring System) other than those generated from vehicle tracking services, were in line with the sales forecasts. Overall, the operational performance of the group (January to October) compared to the same period in 2007 saw an improvement in turnover, notwithstanding the incurred sterling-euro exchange rate loss. Costs registered a slight increase due to an increase in the group's human resource complement.

On Thursday Go plc, in which trading activity has been rather low over the past weeks, dragged the index slightly lower on a single deal of 100 shares. Its share price closed at €1.899.

The share price of RS2 Software plc remained stable at €0.75 on a single deal of 4,800 shares.

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, on 2122 4410 or e-mail jmizzi@jmfs.net.