Strong demand for government stocks

The Malta Stock Exchange index gained 2.38 per cent over the week, helped by gains in Bank of Valletta plc, HSBC Bank plc and Go plc and International Hotel Investments plc. The index closed the week at 3,018.213. Ten equities were negotiated with seven closing in positive territory, two others closing in negative territory and one remained unchanged.

A total of 343 deals were registered over the week with an above average turnover of over €29 million. In the equity market, 171 transactions were executed for a total value of €2.5 million, while in the government bond market 60 transactions were registered for a value traded of over €18.34 million. A total of 94 transactions were registered in the corporate bond market for a volume of 741,827 and a value of €689,923. In the Treasury bills market, a total of 18 transactions were registered for a total value of just over €7.84 million.

The share price of Bank of Valletta plc regained all the losses suffered last week as it gained 1.87 per cent, closing the week at €2.399. In all, 45 transactions and a volume of 44,793 shares changed hands for a total value traded of €106,913. The share price of BOV traded at a high of €2.40 and a low of €2.36 during the week.

HSBC Bank Malta plc registered the second highest gain for the week as it soared by four per cent. The number of shares changing hands was 46,840 over 35 trades. The highest price traded for HSBC was at €2.63 and the lowest €2.50. The equity closed the week at €2.60. During the week, HSBC issued the interim directors' statement for the first quarter of 2009. As expected, the global downturn has had a negative impact on the core income and profitability of the company. Alan Richards, director and CEO of HSBC Bank Malta plc, said that the first quarter of this year has been difficult and the bank's short-term financial performance has been appreciably impacted by market conditions. He believes that the outlook for 2009 remains very challenging, however HSBC Bank Malta plc is well-positioned to weather the storm and to support its customers and the local economy as a whole.

Having gained 6.19 per cent in last week's trading, Go plc registered another good performance for this week as its share price increased by 3.3 per cent. Go plc registered the highest number of transactions for the week as 55 deals and a volume of 69,961 shares changed hands. The equity closed the week at €1.755, but traded at a low of €1.697. Yesterday , the company issued a company announcement which sheds light on the company's finances for the first quarter of 2009. The revenues for this period have declined as a result of a reduction of usage of services. This has led to a drop in profitability when compared to the same quarter last year. In spite of increasing competition across all its services, Go plc has managed to grow its overall client base. During the first three months of the year, the group has been working on a programme to streamline its activities across the entire group so as to offer a better service to clients and improve control over cost structures. The statement also indicates that the group's investment in Forthnet continues to perform well and has registered a growth in revenue for the first quarter. The group retains a positive outlook about the future.

Maltapost plc gained 1.43 per cent over the week and closed at €0.71. Six transactions were registered for a volume of 6,000 and a value of €4,142.

The best performance for the week was registered by Simonds Farsons Cisk plc. The equity rose to €1.869 from €1.75 last week, a gain of 6.8 per cent. However, the volume traded was low as only 1,450 shares changed hands in three deals.

Another gain for the week was registered in the shares of International Hotel Investments plc. The price closed at €0.94 and during the week traded at a high of €0.95 and a low of €0.93. The volume traded was 12,545 for a value of €11,800.

An increase of 3.33 per cent was registered in the share price of Malta International Airport plc. A total of 2,047 shares changed hands over four transactions and a value of €4,379.

FIMBank plc suffered a minimal loss of 0.77 per cent over the week as its share price closed at US$1.29. The equity was the most traded as 2.24 million shares changed hands on 16 deals.

Crimsonwing plc registered the worst performance for the week as it decreased by 16.84 per cent. However, this drop was attributed to one deal of 3,000 shares and a value of €1,170.

Two transactions were posted in RS2 Software plc. However, the share price remains unchanged at €0.72. Earlier in the week, the company announced its interim directors' statement for the first quarter of 2009. The company registered satisfactory results although slightly lower when compared to the same period last year. This was due to declines in services requested from current clients, mainly banks, as budgets are being curtailed due to the financial crisis.

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