This week the Malta Stock Exchange Index closed at 3,313.336 points, a gain of 0.16 per cent over last week. Since the beginning of the year to date the index has lost 32.90 per cent. During the week, seven equities were negotiated, with three equities closing in negative territory and four closing in positive territory. Shares of HSBC Bank Malta lost most territory as the share price dropped by 1.69 per cent to €2.85 while Malta International Airport plc gained most territory with an appreciation of 11.61 per cent, closing at €2.50.
A total of 152 deals were registered on the stock exchange for a turnover of over €5.2 million. In the equity market 62 transactions were carried out for a total value of €217,101. In the corporate bond market 31 transactions for a total value of €212,630 were executed, while in the government bond market 34 transactions were executed for a value of €650,708. Twenty-four transactions were carried out in the Treasury Bills market for a value of over €4.1 million.
Following last week's European Central Bank cut of 75 basis points in interest rates to 2.5 per cent, on Tuesday, all but one traded Malta government bonds declined. On the contrary the five per cent MGS 2021 gained 258 basis points and closed at 107.21 per cent. In the corporate bond market the 4.6 per cent HSBC 2017 gained 100 basis points and closed at par, while the Globalcapital bond traded at €75.00. On Thursday, corporate bond prices and government stocks moved higher. Following the ECB's decision to lower its refinancing rate both Bank of Valletta plc and HSBC Bank Malta plc revised their interest rates. While Malta Government bonds closed higher as eurozone yields continue to decline yesterday, prices of traded corporate bonds were practically unchanged.
Yesterday MIDI plc announced they had issued a prospectus relating to a €30-million bond issue available in euro and sterling. The new bonds which carry a coupon of seven per cent per annum will mature in 2016-2018. The company reserves the right to increase the amount up to an equivalent of €10 million.
In the banking sector the share price of Bank of Valletta plc dropped by 0.83 per cent and closed at €3.59 as 17,837 shares changed hands across 29 deals. Bank of Valletta plc will be holding its annual general meeting next Wednesday when shareholders will be asked to approve a number of resolutions including the payment of a final dividend of €0.0675 per share and a one-for-five bonus share issue together with the renewal of the share buy-back option.
As mentioned earlier HSBC Bank Malta plc lost most ground this week, during which its share price dropped by 1.69 per cent to €2.85 as 44,136 shares changed hands across 23 deals.
Lombard Bank Malta plc was a positive performer during this week with a gain of 1.69 per cent to €3 as 1,000 shares were negotiated on a single deal.
This week Fimbank plc managed to recover most of last week's losses with a gain of 6.92 per cent as its share price closed at $1.39 when 8,209 shares were negotiated across three deals.
The share price of Go plc dropped by 0.26 per cent to €1.895 as 3,650 shares were negotiated across two transactions.
Malta International Airport plc was the best performer this week with an increase of 11.61 per cent to €2.50. Three deals for a total volume of 2,580 shares were executed. On Tuesday the share price of MIA increased by the daily limit of 6.96 per cent to €2.396. Two thousand two hundred shares changed hands across two deals. On Wednesday the share price continued to increase as it rose by a further 4.3 per cent to €2.50 as just 380 shares were traded in a single deal. This followed an interview held last week by MIA CEO Julian Jaegar during which he pointed out that the first half of 2009 is expected to be difficult while the second half of the year should be better. MIA is trying to increase the routes from Malta and lower income from passenger movements is expected to be offset by increased revenues derived from concessionaires following the new contracts which have assured MIA high minimum guaranteed revenues.
On Thursday the share price of Grand Harbour Marina plc appreciated by 7.03 per cent to €1.98 as 1,251 shares were negotiated on a single deal. During an interview with The Times Business which appeared in Thursday's issue, Nick Maris, chairman of the company, said that despite the current economic situation the yachting industry remains in good shape.
This article, compiled by Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents thereof 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, on 2122 4410 or e-mail jmizzi@jmfs.net.