Stock Exchange: Positive day for local market

Although volumes remained weak, the local equity market moved higher on gains in the share prices of both Bank of Valletta plc and HSBC Bank Malta plc.

The MSE Share Index edged 0.3 per cent higher to 3,476.994 points as the equities of both large banks gained 0.6 per cent each.

The only other active equity, Malta International Airport plc, closed unchanged at the €1.55 level on increased volumes of 25,800 shares. The airport operator is expected to make the interim dividend payment of €0.03 to all shareholders on September 15.

The bond market also registered another day of gains as Malta Government Stock prices continue to move higher. The 20-year paper again registered high volumes of over €1.7 million with the price reaching a new all-time high of 104.50 per cent before easing back to the 104.45 per cent level but still representing a 20-basis points increase over the previous close.

Shortly after the close of this morning’s trading session, 6pm Holdings plc announced its 2010 half-year results revealing a 38.6 per cent drop in revenue to £1.8 million and a loss of £218,909 compared to a loss of £38,011 incurred in the first six months of 2009.

The directors commented that the group was adversely affected by the uncertainty surrounding the UK general election and the subsequent formation of a new coalition government.

However, the directors believe that the early signs of recovery in the private sector should help the group improve its performance by year-end.

In the half-year report, no reference was made to the substantial contract in negotiation which 6pm had indicated could be concluded by the end of last June.

In the interim statement of May 19, 6pm’s directors, however, noted that there is no absolute certainty that this contract will be concluded by the half-year end. They had expressed their cautious optimism that it is achievable and the effect on group profits will materialise leading to a respectable first half year performance.

GlobalCapital plc is expected to publish its 2010 interim results later today followed by Grand Harbour Marina plc tomorrow.

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