The Malta Stock Exchange Index declined by 1.5 per cent to 4,650.36 points during a week in which major share price gains were recorded in Maltapost, Go and Datatrak, while the worst equity performer was HSBC Bank Malta (HSBC), notwithstanding its record annual profits announced in the previous week.
A total of 327 deals were registered on the stock exchange for a turnover above €15.9 million. In the equity market 198 deals were executed for a traded value of €1.15 million, while 116 transactions were performed in local corporate bonds and government stocks for a turnover just below €11.9 million. In addition, 12 deals were executed in Treasury bills for €2.84 million.
Maltapost shares advanced a further six per cent on the week to close at their weekly high price of €0.70, thus closing 40 per cent higher from when first issued last January. This weekly gain was attained on high activity; the volume traded amounting to over 231,000 shares which were negotiated across 51 deals. The board of directors will be meeting on May 22 to consider and approve the financial statements for the half-year ending March 31.
Go gained 1.6 per cent on a weekly basis to close at €3.136 during the week in which its board of directors approved the financial results for the year ended December 31. It was noted that the Group recorded a profit before taxation amounting to Lm11.9 million, slightly less than the previous year (2006: Lm12.0 million). This represents a return of 14.1 per cent (2006: 14.4 per cent) of the average shareholders' funds, and 10.4 per cent of the average total assets employed (2006: 10.8 per cent). The board also resolved to recommend the payment of a final net dividend of €0.11c65 (Lm0.05c) net of taxation per share, this being equal to the dividend paid out in 2006. The final dividend will be paid on April 16, to all shareholders on the register as at March 14.
One may also note in the financial statements that net operating costs (excluding voluntary retirement costs and VAT claim refundable) amounted to Lm46.4 million when compared to the Lm40.7 million figure in 2006, while the tax expense for the year amounted to Lm4.7 million, also higher than 2006, which stood at Lm3.9 million.
Datatrak Holdings was the second best equity performer of the week rising by 5.2 per cent to €0.305, even though this was attained on a single transaction of 2,424 shares. Moreover, International Hotel Investments (IHI) and Malta International Airport (MIA) were among the positive performers. IHI shares edged 0.1 per cent higher to €1.001 on a volume of 70,890 shares, while MIA traded 63,369 shares over twenty-one deals to add 0.6 per cent and close at €3.22.
In the banking sector, following last week's announcement of positive financial results, HSBC declined by 4.4 per cent or €0.20 to close at its weekly lowest traded price of €4.40. This was attained on a volume of 36,824 shares which swapped hands over 31 transactions. Bank of Valletta shares also closed in negative territory having shed 0.3 per cent to end the week at €5.834 on a volume just above 21,000 shares.
Lombard Bank Malta had two mere deals recorded at the stable price of €13.00. During the week Lombard announced that Marfin Popular Bank Public Company Ltd of Cyprus was granted regulatory approval for the acquisition of 43 per cent of its (Lombard) share capital. In addition, FIMBank was highly active having 255,535 shares change hands across twenty-three transactions to close unchanged at the US$2.00 level.
Furthermore, Middlesea Insurance declined by 1.4 per cent on a low volume of 945 shares to close at €3.60, while Crimsonwing had 7,000 shares transacted over two deals to shed 0.9 per cent and close at €0.585. Plaza Centres' edged less than 0.1 per cent lower to close at €1.699 on a single minor deal, while San Tumas Shareholdings' shares were also active with the equity price closing unchanged at €2.562.
In the local bond sector, activity was strong in Malta Government Stocks with 16 issues being traded for a total turnover over €11.12 million. The majority of such stocks, however, suffered price decreases, with the most active issues being the 7.2 per cent MGS 2008, 7.2 per cent MGS 2008 (II) and the 5.4 per cent MGS 2010 (IV) which closed at €100.66, €101.35 and €102.76 respectively.
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 please contact JFMS at 67/3, South Street, Valletta, or on tel: 2122 4410 or e-mail jmizzi@jmfs.net.