MSE index up 3.82% after weeks of decline

International equity indices ended the week in positive territory for the sixth consecutive week, boosted by positive results of US banks that reported better than expected profits in the first three months of the year.

In the US, the Dow Jones Industrial Average, the Standard and Poor's 500 and the Nasdaq Composite gained between 0.6% and just over 1.5% on the week.

In Europe, the CAC 40 in Paris was up 3.86% while the Xetra Dax in Frankfurt was up 4.12%, notwithstanding the news that the 16 eurozone countries posted a €2bn deficit in 2008 compared to a €1.7bn surplus the previous year.

The FTSE 100 index in London was up 2.74% on the week, as the financial sector continued to rally.

The Malta Stock Exchange (MSE) also ended the week up, reaching 2,747.935 points, a healthy 3.82% gain over the previous week, after many negative weeks.

Nine equities were traded during the week, with five closing higher, three falling and one remaining unchanged. HSBC Bank Malta plc (HSBC), Bank of Valletta plc (BoV), Fimbank plc, Lombard Bank Malta plc, and Malta International Airport plc (MIA) were all net gainers, while some losses were reported for International Hotel Investments plc (IHI), Plaza Centres plc, and Maltapost plc. Go plc's share price remained stable.

This week saw 228 deals registered on the MSE with a turnover of over €7.3m. In the equity market, there were 130 transactions for a total of €244,476, while in the government bond market 45 deals were carried out for nearly €0.9m. There were 36 deals in the corporate bond market for a total of €270,451, while 14 transactions were carried out in the Treasury Bills market for €5.9m.

BoV started negatively on Monday but recovered gradually throughout the week, with a particularly strong session on Friday. A total of 55,666 BoV shares were traded in 54 deals with the equity posting a 4.91% gain, mostly as a result of Friday's trading.

BoV announced on Wednesday that the board of directors is scheduled to meet on April 30 to approve the company's financial statements for the year ended March 31, and to consider the payment of a dividend.

HSBC was this week's best performer, climbing steadily from mid-week to register a very generous 10.92% gain. This, however, was achieved over a slightly lower traded volume than usual. Indeed, only 26,239 HSBC shares changed hands across 36 trades this week.

Fimbank's share price increased 6.15% from $1.30 to $1.38 during the week with 3,706 shares changing hands over six trades. Its largest upward swing was recorded on the week's last trading day.

On Friday, Fimbank announced that the pre-placement for its 7% 2012-2019 bond issue was oversubscribed. Applications for subscription by the public will open on Thursday.

Lombard Bank Malta plc appreciated 0.82% during the week under review with its share price closing higher at €2.45 following two deals on Friday involving 2,170 shares.

MIA's share price crept up a mere 0.49% this week to close at €2.06, with 2,000 shares changing hands in three trades.

Go's share price see-sawed between €1.50 and €1.55, but ended the week unchanged. The equity's downward slide on Wednesday was reversed in Friday's trading over very light volume. During the week, 33,502 shares were traded across 24 deals with the bulk occurring on Wednesday.

On the other hand, Maltapost plc's share price slipped to €0.70 from €0.728 on the first day of the week following a single trade of 2,000 shares.

Both Plaza plc and IHI shares also registered losses this week, mainly on Friday, with the former losing 1.16% and the latter shedding 2.69% from their previous week's closing price, both on very light volume.

On Monday, IHI announced that at a meeting held on April 9, the board of directors approved the preliminary statement of results for 2008.

The group's turnover for the year amounted to €127.97m, a 23% increase on 2007's turnover of €104.82m.

Profit before tax amounted to €14m, compared to €10m in 2007, a 39.9% increase. Earnings per share for 2008 remained unchanged at €0.03. The board did not recommend the payment of a dividend.

This article, which was compiled by Jesmond Mizzi Financial Services Limited (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, call 2122 4410 or e-mail jmizzi@jmfs.net.