Go, Fimbank, Global Capital announce annual results

Despite rising slightly in the week's first two sessions the Malta Stock Exchange ended the short trading week 0.16% lower at 3,590.125 points. Thirteen equities traded on the MSE last week, with three ending higher, seven lower and three unchanged. Nearly €11.5 million worth of trading took place on the exchange across 291 deals.

In the equity market there were 128 transactions worth a total of €435,000 and 77 deals in the corporate bond market worth €378,000. Nearly €5.6m changed hands across 82 transactions in the government bond market, while four deals worth over €5m took place in the Treasury bills market.

Bank of Valletta plc's share price fell a slight 0.03% as 54,217 shares were traded in 45 deals. BoV had a fairly mixed week with minor changes in its share price throughout the four trading days, ranging from a weekly high of €3.295 down to a low of €3.25 at which price it closed the week.

Trading in HSBC Bank Malta plc all but dried up last week with barely 2,530 shares changing hands, a far cry from this equity's weekly average. On Thursday the bank's share price increased by a marginal 0.30% to end the week at €3.31.

Once again, the most traded equity last week was Maltapost plc, with just over 97,000 shares being exchanged. The bulk of trading occurred on Thursday with the share price being bid lower by 0.51% to close the week at €0.786.

Go plc shares last week shed 1.24% from their previous week's closing value. Nearly 29,000 shares were traded over 10 deals occurring in two sessions. The equity's price fell to €2.239, seemingly gathering downward momentum after a lengthy period in which the price fluctuated minimally around €2.30.

Last week Go announced its annual results for the financial year ended December 2009. The group registered an operating profit of €7.4 million in 2009 as against €13.3m in 2008. However, both 2009 and 2008 results include various one-time charges. The group said 2009 was a challenging year as demand for its services were impacted by the international economic climate.

The group said it had pursued a 'right-sizing programme' to reduce its staff headcount and this could deliver a significantly lower cost base in the coming years. It is confident that the investment in Forthnet SA will make a positive contribution to the group's results in the medium term.

The board agreed to recommend for the annual general meeting's approval the payment of a final net dividend of €0.10 per share net of tax. The final dividend will be paid on May 21 to all registered shareholders as at April 16.

Malta International Airport plc's share price rose 2.86% last week, from €3.15 to €3.24, as 21,257 shares changed hands across 23 deals. Initially, the share price soared to €3.26 backed by most of the trades, but subsequent trading trimmed these gains back slightly.

Notwithstanding higher-than-average trading, Island Hotels Group Holdings plc's share price remained unchanged at €1.01. Minimal trading in International Hotel Investments plc and Santumas Shareholdings plc last week left these equities' prices unchanged at €0.80 and €2.60 respectively.

Fimbank plc issued its results on Wednesday for the year ended December 2009. The group made an after-tax profit of $1.6 million (compared to $24.8m in 2008 yet following an outlier-after-tax profit). The group said it had managed to maintain a consistent flow of fee-driven transactions, optimising the profitability of new business, and that the overall outlook is one of improved business sentiment and strengthened profitability.

The group announced that the board of directors would be recommending the payment of a scrip dividend of $1.1556 per ordinary share to be paid either in cash or by the issue of new shares. All shareholders registered as at close of trading on Thursday will be entitled to receive this dividend, which will be paid after May 6 upon approval.

There was minor trading in the equity in Wednesday's and Thursday's sessions, which led to a 3.47% fall in its share price, which closed the week at $1.139.

In the week's opening sessions there were big fluctuations in the share prices of Loqus Holdings plc and Global Capital plc, albeit on minimal volume, with the former soaring nearly 24% and the latter plummeting just over 10% to end the week at €0.26 and €1.70 respectively.

On Thursday, Global Capital plc announced its results for 2009. The group registered a net loss of €760,744, a significant improvement compared to the €6.9 million net loss in 2008. The company said the improvement was mainly due to a revitalisation programme initiated by the board early in 2009, besides a partial recovery of financial markets. The directors do not recommend the declaration of a dividend.

Middlesea Insurance plc (MSI) and Simonds Farsons Cisk plc both shed just over 1% although trading was very light. MSI announced last week that shareholders had approved the resolutions submitted at an extraordinary general meeting held last Tuesday.

Some local corporate bonds that traded last week ended in lower prices, while on the contrary local government bonds sustained their upward trend started some weeks ago, recording further gains.

This article, which was compiled by Jesmond Mizzi, managing director of 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 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, on Tel. 2122 4410 or e-mail jmizzi@jmfs.net.