This week the Malta Stock Exchange index closed at 2863.007 points, a drop of 3.60 per cent on the week. In total seven equities were negotiated, with one closing in positive territory, five closing in negative territory and one remaining stable. Fimbank plc was the best performer of the week as its share price appreciated by 0.33 per cent to $1.50 on a single trade of 1,260 shares. On the other hand, Bank of Valletta plc lost most ground as its share price dropped by 7.91 per cent and closed at €2.247.
During the week 257 deals were registered on the stock exchange for a turnover of just under €7.59 million. In the equity market 130 transactions were carried out for a total value of €406,103. In the corporate bond market 69 transactions for a total value of €572,096 were executed. While in the government bond market 40 transactions were executed for a value of over €1.65 million, 17 transactions were carried out in the Treasury bills market for a value of over €4.94m.
Trading on the MSE in the equity market was focused mainly on the two major banks which represented 88 per cent of the deals transacted. As stated, the share price of Bank of Valletta plc dropped by 7.91 per cent and closed at €2.247. This week a total of 114,252 shares were negotiated across 75 deals. The equity had a very bad week as the share price fell every day except on Thursday as it did not trade. On Tuesday the share price experienced the worst day as it fell by 4.13 per cent.
Over the week HSBC Bank Malta plc lost 6.94 per cent and closed at €2.28 as 38,467 shares were negotiated across 40 deals as investors awaited the results of the group. The share price of HSBC also fell every day but declined mostly on Tuesday and yesterday. On Tuesday HSBC lost most ground as it dropped by two per cent on five trades for a total volume of 4,842 shares, while yesterday HSBC's drop was of 2.98 per cent to €2.28 when 10,880 shares were negotiated across 10 deals.
Yesterday the board of directors of HSBC approved the preliminary statement of annual results for the financial year ended December 31, 2008. After yesterday's trading session HSBC announced that for the year ended December 31, 2008 profit before tax stood at €96.1 million, down €18.6 million, or 16.2 per cent, when compared with €114.6 million in 2007. Not withstanding the drop in profit the bank stated that this was a solid result achieved after taking into account the introduction of the euro and the volatility of world financial markets. Overall, profitability was still strong with a return on equity of 22.3 per cent.
Chief executive officer Alan Richards stated that "while some of the challenges we face may be unprecedented, we are in good shape."
It was also announced that the board of directors resolved to recommend that the annual general meeting to be held on April 1 approves the payment of a final ordinary dividend of €0.096 gross per share (€0.062 net per share) which will be paid on April 20, to shareholders registered with the company as at March 4.
This week the share price of Lombard Bank Malta plc dropped by 5.77 per cent and closed at €2.45. Seventeen thousand and eighty-eight shares were negotiated across seven deals.
Although Maltapost plc was not traded during this week, on Tuesday the company held its annual general meeting during which shareholders approved final accounts as at September 2008 and a final net dividend of €0.04 per share.
On Thursday the share price of Middlesea Insurance plc dropped by 0.19 per cent to €2.575 on a single deal of 160 shares.
Malta International Airport plc was traded yesterday and lost some ground as its share price dropped by 0.08 per cent to €2.427 when 2,800 shares changed hands across five deals.
Yesterday a single deal of 200 shares left the share price of Plaza Centres plc stable at €1.68.
In an interim statement published on February 19, Crimsonwing plc stated that due to the financial markets turmoil during the third quarter it has been dealing with difficult trading conditions and this challenge has continued in the final quarter of the financial year. Overall, and before exchange rate effects, the Crimsonwing business units will show a combined operational profit for the year of circa €100,000, and this includes an allowance for losses of around €400,000 at VDA (acquired in July 2008). All the business units (apart from VDA) are profitable, despite the difficult global economic conditions.
The company further stated that, the further weakening of the UK sterling against the euro in Q4 has compounded the effect of the general economic downturn that could have a material impact on the group's profitability. Unless there is significant recovery in the exchange rate scenario over the remaining two months until the group's financial year-end it is likely that the group will make a loss of circa €400,000 on exchange that will result in the year-end position of Crimsonwing plc reporting losses of around €300,000 overall.
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 or on telephone 2122 4410 or e-mail jmizzi@jmfs.net.