Financial news

Following the mid-week recess, investors returned to the local market for the final trading session of the week. The general mood remained sombre with investors continuing to sell securities forcing a further 0.7 per cent decline on the MSE Index which closed at 2,689 points, its lowest level since August 2004.

Go was the only stable equity of the session as the quadruple play telecommunications provider posted its full year results mid-way through the session, which showed a pre-tax loss of €1.3 million for the period ending December 31, 2008 as a consequence of various one-off transactions. The group's turnover decreased marginally as a result of discontinued operations of its international call centre business. Nevertheless the board is proposing the payment of a net dividend of 12c per share.

HSBC Bank Malta was the day's most actively traded equity with a total of 23,650 shares, carrying a market consideration of €50,981, being exchanged across 13 transactions. The equity commenced trading lower and recovered slightly towards the end of the session but still closed weaker by 2c or 0.9 per cent at the €2.16 level.

Bank of Valletta declined by the same monetary value to €2.20 as 5,270 shares were sold across five transactions. At the end of the session, the best bid stood for 800 shares at €2.10 while offers stood for 1,256 shares asking a price of €2.20. FIMBank, which reported a record $39.4 million pre-tax profit last week together with the issue of a subordinated bond, lost further ground and declined 5.2 per cent to terminate the week at $1.30, its lowest level since early December 2008. The trade finance specialist has lost more than 12 per cent of its value in the past four sessions.

Elsewhere in the market a sole trade in Maltapost shares saw two investors swap 4,000 shares at the €0.729 level which represents the smallest monetary discount when compared to its previous closing price.

Weekly MSE equity report

Continued selling pressure brought further misery to investors in local equities as the MSE Index dropped a further 0.5 per cent this week to close at a new multi-year low of 2,689 points.

FIMBank, which reported a record $39.4 million pre-tax profit last week while announcing the issue of a dual currency seven per cent subordinated bond maturing 2019 with an early call option, lost in excess of 12.5 per cent to terminate at the $1.30 level.

Go was the second worst performer of the week as the company posted its full year results mid-way through yesterday's trading session. Results showed a pre-tax loss of €1.3 million for the period ending December 31, 2008 as a consequence of various one-off transactions. Nevertheless the board is proposing the payment of a net dividend of 12c per share.

RS2 Software failed to trade during the week when the company announced its full year results for the period ending December 31, 2008. The card business software developer reported a 35 per cent increase in pre-tax profits, reported at €2.9 million on total revenues of €8.34 million. The board has proposed a net final dividend of 2c2 per share.

Bank of Valletta was the week's top performer with the equity gaining 5.3 per cent on the transaction of 60,838 shares. The equity closed the week at €2.20. HSBC Bank Malta also posted a positive shift as it moved higher by 0.5 per cent to clinch the €2.16 level.

A single low volume transaction in Malta International Airport was struck at €2.18 while Maltapost decreased by 1.5 per cent as 22,000 shares were exchanged down to the €0.729 level.

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.