European bourses reached 11-week highs this week, buoyed by the banking sector, with the CAC 40 in Paris ending the week 1.84% up and the Xetra Dax in Frankfurt up 2.03 % despite reports that the German economy is likely to shrink six per cent this year.
April was the best month ever for these markets. Investors' positive sentiment came about as reports emerged of the first significant rise in Eurozone optimism for almost two years. The European Central Bank is also likely to reduce interest rates on Thursday to further assist the region's economic recovery.
The FTSE 100 index in London was also up 2.09 % on the week as insurers and financial stocks rallied once again.
In the US, equity markets had a positive week despite indications that regulators are likely to compel banks to raise their capital. The Dow Jones Industrial Average ended the week 1.68% up, Standard and Poor's 500 was up 1.27% while the Nasdaq Composite managed to gain 1.48% extending its rally to eight consecutive positive weeks.
The Malta Stock Exchange (MSE) ended the week 0.13% higher, reaching 2,829.478 points. Eight equities were traded this week, with two closing higher, four trading lower and two remaining unchanged.
Go plc and International Hotel Investments plc were both net gainers, Bank of Valletta plc (BoV), HSBC Bank Malta plc (HSBC) and Malta International Airport (MIA) and RS2 Software Plc reported losses, while Fimbank plc and Lombard Bank Malta plc remained stable despite being traded.
The week saw 196 deals worth €3.73m registered on the exchange. In the equity market, there were 103 transactions for €335,225, while in the government bond market, 49 deals were carried out for over €1.58m. There were 36 deals in the corporate bond market for €214,533, while seven transactions took place in the Treasury Bills market for over €1.6m.
IHI was the best net gainer of the week, posting a 9.59% gain, with its share price climbing throughout the week except on Tuesday. A total of 96,300 shares in the equity were traded in 12 deals.
Go registered a 3.29% gain this week. The equity price jumped from €1.549 to €1.599 on Monday when 1,500 shares were traded in three deals. It closed at €1.60 on Thursday after 14,000 shares had changed hands.
BoV's share price fell every day this week, dropping 6.29% over the week. A total of 11,038 shares were traded in 16 deals. On Friday, BoV announced the approval of its unaudited financial statements for the six months ending March 31. The BoV group registered a pre-tax operating profit of €10.1m (€21.9m in 2008).
An interim gross dividend of €0.035 per share will be paid on May 28 to all registed BoV shareholders as at May 13.
MIA's share price shed 3.23% this week to close at €2.10, with 1,073 shares changing hands in two trades.
A single trade of 2,500 shares in RS2 on Wednesday dragged the equity price down 2.70% to €0.72.
HSBC fell 1.64% this week after 83,798 shares were exchanged in 58 deals. The equity traded negatively throughout the week but in Thursday's session it recovered 2.21% over Wednesday's closing price of €2.348 to close at €2.40.
A single trade in Lombard shares on Thursday kept the equity's price stable at €2.65. This week Lombard announced its annual report for the year ending December 31. The group registered a post-tax of €9.08m - a 28% increase over the previous year.
The group's total operating income increased 92% due to the consolidation for the first time of a full year's profit from the bank's investment in Maltapost plc. Total operating income reached €36.9m, of which €19.5m came from postal sales and other revenue. The board is recommending a gross dividend of €0.10 per share.
Fimbank's share price remained stable at USD1.364 throughout the week. There was a single trade of 100 shares on Monday.
Middlesea Insurance plc (MSI) did not trade this week but announced its annual report for the year ended December 31. The MSI group registered a post-tax loss of €20.59m compared to a €6.91m profit in 2007. The company said this was mainly due to the post-tax loss of €19.1m registered by its Italian subsidiary, Progress Assicurazioni SpA, and the effect the unprecedented world financial crisis had on its investment portfolio.
The directors are not recommending the payment of a dividend.
During the week, Simonds Farsons Cisk plc announced the group's preliminary financial statements for the year ended January 31. Group profit fell sharply to €895,000, from €4.4m the previous year. It is proposing a final net dividend of €0.0311 for each ordinary share.
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 Tel: 2122 4410 or e-mail jmizzi@jmfs.net.