Low trading on equities as Melita announces bond issue

Melita Capital plc announced the issue of €20 million bonds at a coupon rate of 7.15 per cent per annum, subject to an over allotment option of €5 million. The bonds shall mature between September 30, 2014, and September 30, 2016, subject to prior notice. Proceeds from the bond issue shall be used to substitute project finance currently in place and for the funding of the continued capital expenditure. The bonds shall be issued at par and constitute the general, direct, unconditional, unsubordinated and unsecured obligations of the issuer and shall at all times rank pari passu with other outstanding unsecured obligations.

Meanwhile, the Malta Stock Exchange index declined by a further 0.71 per cent this week, closing at 3,032.468 points. A loss of 0.722 per cent on Wednesday had a high effect on this week's index performance, as gains of 0.073 per cent and 0.308 per cent were registered on Thursday and yesterday respectively.

Eight equities were traded this week with just one closing in positive territory, two remaining unchanged, and five closing in negative territory.

A total of 203 deals were registered over the week with a turnover of over €8.39 million. In the equity market 58 transactions were executed for a total value of €145,059, while in the corporate bond market 92 transactions were registered for a value traded of over €1.14 million. A total of 46 deals were registered in the government bond market for a value of over €4.77 million. In the treasury bills market a total of seven transactions were registered for a total value of over €2.33 million.

HSBC Bank Malta plc was the only equity to close in positive territory this week. HSBC gained 0.75 per cent, after trading a volume of 22,273 shares across 27 deals, for a total value of €59,435. The equity closed at €2.67, a rise of €0.02, trading between the range of €2.70 and €2.65. A rise of 1.85 per cent registered on Monday was partly erased by a fall of 1.44 per cent on Wednesday, although increasing again yesterday by 0.38 per cent.

Bank of Valletta plc remained unchanged this week, closing at €2.99. A gain of 1.01 per cent yesterday kept the share price unchanged for the week, as the share price trailed the index's gains and losses. The equity traded at a low of €2.949 and a high of €3, as 12,155 shares changed hands on 15 transactions.

The share price of Lombard Bank plc registered a marginal loss of €0.001 on Wednesday, to close the week at €2.549, with 4,000 shares changing hands over two deals.

Santumas Shareholdings plc registered a single trade of 1,250 shares and thus remaining unchanged at €3.04.

Middlesea Insurance plc registered an overwhelming loss of 6.2 per cent on Wednesday, on a single trade of just 194 shares. The closing price for the week was €1.65, depreciating by €0.109, as MSI is now at a year to date loss of almost 35.3 per cent.

Go plc continued its negative run, decreasing a further 5.03 per cent. This loss was registered on Monday, as the equity closed the week at €1.70, as 12,550 shares changed hands across six transactions. With this loss, Go is now at a year to date loss of 2.97 per cent, having previously been at a year to date gain of 2.17 per cent.

The share price of International Hotel Investments plc lost €0.02 this week, after last week's loss of 2.5 per cent. The equity registered five deals of 15,260 shares, closing the week at €0.80.

Maltapost plc registered a decrease of 1.43 per cent yesterday, having traded 2,198 shares on a single deal, closing the week at €0.69, a loss of €0.01.

This article, which was compiled by Jesmond Mizzi Financial Services Ltd, 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.