The Malta Stock Exchange Index (MSE) closed at 3,765.898 points, losing 4.27 per cent on the week and almost 24 per cent year to date. This week the index fell during the five sessions, as ten equities were negotiated. Five equities traded closed in negative territory and four remained unchanged, with no equity increasing during the week.
A total of 233 trades were registered on the stock exchange, with a total turnover of €6.756 million. In the equity market 138 deals were executed with 277,665 shares changing hands, while in the corporate bond market 44 deals were carried out, with a volume of 422,069. In the government bond market, 43 deals were executed for a total value of over €4.036 million. In the Treasury Bills market, eight deals were executed for a total value of over €1.84 million.
In the banking sector, the share price of HSBC Bank Malta plc continued to lose ground during the week. The equity closed at €2.95, falling by almost 11 per cent, on a turnover of 50,996 shares traded over 58 deals. The equity closed each session in negative territory. On the other hand, the share price of FIMBank plc maintained its previous level, closing at USD 1.885 as 64,628 shares traded over eight deals. Bank of Valletta plc experienced a decrease in its share price, closing the week at €4.30 and decreasing by €0.20 on the week, or by 4.44 per cent, on a turnover of 30,598 shares traded over 34 deals.
Malta International Airport plc registered a loss in its share price of 2.56 per cent, closing the week at €3.04, with 4,300 shares changing hands on three deals. GO plc experienced a loss in its share price during the week. The closing price was €2.50, 0.40 per cent less than last week, with 10,700 shares changing hands on 14 deals. During the week, GO plc announced that the board of Directors is scheduled to meet on August 2008 to discuss the Company's half-yearly financial Statements for the period January, to June 30, 2008. Datatrak plc lost some of its previous share price, as the equity closed the week at €0.29, thus losing 0.34 per cent, as 13,424 shares were traded over three deals.
Crimsonwing plc retained its previous share price of €0.53, as 71,500 shares traded over seven deals. On the other hand, International Hotel Investments plc traded once as 478 shares changed hands. The equity closed at €1.06, therefore maintaining its previous share price. Maltapost plc also retained last week's share price, closing the week at €0.75 as 6,241 shares changed hands over seven deals. Plaza Centres plc closed the week at its previous share price. The equity closed at €1.70, as 24,800 shares changed hands over three deals.
During the week, RS2 Software plc announced that the board of Directors is scheduled to meet on August 12 to consider and approve the half-yearly financial report for the period ended June 30, 2008. Medserv plc also announced that the board of directors is scheduled to meet on August 25, 2008 to consider and if thought fit, approve the half-yearly financial report for the period ending June 30, 2008.
On Thursday, the Governing Council of the ECB decided that the minimum bid rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 4.25%, 5.25% and 3.25% respectively. This announcement seems to have had a positive impact on Malta Government stocks on Friday, as all MGS traded appreciated in value.
Middlesea Insurance plc announced its financial results for the six months ending June 30, 2008. The company announced that gross premium written increased by 23.3% from €52.55 million in 2007 to €64.78 million as at June 30, 2008. However, the Group registered a loss after tax for the period of €1.61 million, compared with a profit after tax of €2.84 million for the same period last year. The investment in the associate company Middlesea Valletta Life Assurance Co. Ltd contributed a profit of €0.41 million after taxation. Return from Investments (including unrealised capital movements) for the period reduced sharply to a loss of €3.01 million as compared with an income of €2.98 million in 2007. Total assets increased by 4.3 per cent and totalled €313.82 million as at June, 30 2008. Notwithstanding the satisfactory technical performance generated by the Group for the first six months of 2008, this was outweighed by the very significant fair value movements experienced in the investment portfolio as a result of the capital market turmoil experienced on the international and local market. The fair value losses on the investment portfolio for the period amounted to €5.9 million as compared to a marginal gain of €0.16 million recorded in the previous year. The company reported that although the Group had experienced a loss for the period for the first time in 27 years, the Group is confident that it has the necessary measures in place to maintain the positive technical performance of its insurance portfolio during the second half of the year.
This article, which was compiled by 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 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 please contact JMFS at 67/3, South Street, Valletta, or on tel: 2122 4410 or e-mail jmizzi@jmfs.net.