The Malta Stock Exchange index edged 5.77 per cent lower this week, closing at 3,048.444 points. The index has retreated to a year to date loss of just under five per cent.
The MSE index increased only on Monday by 0.007 per cent, while decreasing on all other trading sessions. The highest loss was registered on Thursday, with a fall of 2.926 per cent, mainly due to the losses suffered by the largest capitalised companies.
A total of 261 deals were registered over the week with a turnover of over €15.63 million. In the equity market 123 transactions were executed for a total value of €382,701, while in the government bond market 28 transactions were registered for a value traded of over €9.58 million. A total of 97 deals were registered in the corporate bond market for a value of €914,021. In the Treasury bills market a total of 13 transactions were registered for a total value of over €4.75 million.
The share price of HSBC Bank Malta plc lost a staggering 12.08 per cent this week. The closing price for the week was €2.62, decreasing by €0.36 on the week, having traded 47,618 shares across 42 deals, for a total value of €130,337. These losses came after last week's announcement of decreased profits for the first six months of this year. HSBC traded at a low of €2.62 and a high of €2.99. The equity suffered losses on three consecutive days, and thus affecting the index's performance.
Bank of Valletta plc lost some of its recent gains, as it closed the week at €2.90, a decrease of €0.099. BOV registered 44 deals of 50,927 shares, trading at a high of €3.001 and a low of €2.85, but falling by 3.3 per cent on the week. The equity registered a gain of 0.03 per cent on Monday, but fell on Wednesday and Thursday by one per cent and 2.36 per cent respectively.
Lombard Bank plc and FIMBank plc remained stable this week. Lombard closed the week at €2.60, while FIMBank closed at $1.29. Both equities registered three transactions, as 3,700 shares changed hands in Lombard and 1,700 shares in FIMBank.
Go plc was the only equity to register gains on the week. Go appreciated by 2.29 per cent, closing the week at €1.79. A total of 29,770 shares changed hands over 16 deals. The equity has regained its positive year to date performance by 2.17 per cent.
Malta International Airport plc, Simonds Farsons Cisk plc and Maltapost plc closed the week unchanged at €2.35 (850 shares on one deal), €1.68 (1,126 shares on three deals) and €0.70 (4,169 shares on four deals) respectively.
The share price of International Hotel Investments plc depreciated by €0.058 on the week. The closing share price for the week was €0.841, declining by 6.45 per cent, as 8,077 shares changed hands on three transactions. The drop in price came about prior and after the company announcement of the financial statements for the half year ended June 30 this year.
IHI registered a sharp decline in its profit before tax, from a profit of €6.01 million last year, to a loss before tax of €1.43 million for the first six months. Likewise, turnover also has decreased from €64.3 million last year to €51.39 million this year, a decrease of just over 20 per cent. The company stated that "the adverse effects of the financial crisis that started to be felt in the second semester of 2008 have spilled over into 2009 with the hospitality industry suffering the effects of recession in its main feeder markets resulting in falling occupancies and increasing pressures on room rates." Earnings per share declined from a positive €0.004 to a negative €0.005.
Both Middlesea Insurance plc and Plaza Centres plc lost a marginal 0.06 per cent loss on the week. MSI closed the week at €1.759, having traded 4,000 shares on three deals, while Plaza closed the week at €1.649, as 10,000 shares changed hands on a single deal. Last Tuesday, MSI announced that the board of directors is scheduled to meet on Tuesday, August 25, to consider and approve the financial statements for the half-year ended June 30, 2009.
During the week, Medserv plc also announced that the board of directors is scheduled to meet on the August 31 to consider, and if thought fit, approve the interim financial statements of the company for the financial period ended June 30 this year.
This week the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at one per cent, 1.75 per cent and 0.25 per cent respectively.
This article which was compiled by Jesmond Mizzi Financial Services Ltd 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.