BOV and HSBC recover but index still in decline

The Malta Stock Exchange Index ended the trading week at 2646.803 points on Thursday, falling by 0.39 per cent from last week in this short trading week.

During the week, eight equities were negotiated, with three closing in positive territory, four closing in negative territory, and one remaining unchanged.

This week a total of 216 deals were registered on the Malta Stock Exchange with a turnover of over €6.1 million. In the equity market, 83 transactions for a total value of €196,082 were executed, while in the government bond market 88 transactions were carried out for a total value of €1.54 million. The corporate bond market saw 35 deals changing hands for a total value of €268,919, while six transactions were carried out in the Treasury bills market for a total value of just over €4 million.

Go plc was the best performing equity this week as it closed the week at €1.55, therefore appreciating by €0.05, or 3.33 per cent, as 16,000 shares traded on five transactions. Go traded all week at the price of €1.55.

In the banking sector, HSBC Bank Malta plc recovered from last week's fall as its share price appreciated by 2.16 per cent. The equity traded 36 times as turnover reached 43,037 shares, closing the week at €2.125, having traded at a low of €2.06.

Likewise, Bank of Valletta plc also managed to recover some of last week's losses as the share prices increased by 0.82 per cent this week. BOV ended the week at €2.097 as 30,660 shares changed hands across 30 deals having traded at a high of €2.10 and a low of €2.07.

Lombard Bank plc managed to retain last week's price at €2.45, as a mere 1,984 shares changed hands on three deals. However, the equity traded at a high of €2.53 during the week.

On the other hand, FIMBank plc did not manage to retain last week's price as its share price fell back to $1.30 that is a fall of 6.47 per cent. Once again, as is very common on the local stock exchange, the fall in the share price resulted as one deal amounting to 1,942 shares was executed.

Malta International Airport plc had a bad week as its share price fell by 5.96 per cent, having gained 7.5 per cent the previous week. MIA traded six times on a turnover of 4,576 as the equity traded at €2.05.

Simonds Farsons Cisk and International Hotel Investments were also victims of the "free market", as one transaction of 366 shares and 350 shares respectively meant that their share price fell by 7.41 per cent and 2.5 per cent respectively.

This week Middlesea Insurance plc announced that the board of directors are scheduled to meet on April 27 to consider and approve the audited financial statements for 2008 and to consider the declaration of a final dividend.

On Thursday, Gasan Finance Company plc announced the issue of 6% Bonds due in 2014-2016 for an aggregate amount of €15m, with an over-allotment option of €5 million. The proceeds of the bond will be used as follows:

• to redeem the outstanding principal amount of €10.87 million of the 6.4% Gasan Finance Bond 2008/2011;

• for the general funding of the issuer;

• to refinance part of the debt of the group companies; and/or

• directly or indirectly, in being on-lent to group companies.

Preference will be given to existing bond holders and employees of the group companies. The issue will open for investors on April 27, and the pre-prepayments agreements with intermediaries will be held on April 24.

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 contact JMFS at 67/3, South Street, Valletta or on telephone 2122 4410 or e-mail jmizzi@jmfs.net.