It would seem that both brokers and investors were too caught up in the transport strike saga - our own 2008 version of Gunfight at the O.K. Corral, with Minister Austin Gatt (or is that "Guts"?) playing Marshall Wyatt Earp, shooting down the cowboys.
As the smoke cleared, the MSE Index closed virtually unchanged at 4,158.185. At first glance, this week's equity turnover of €710,291 would appear to have been a welcome improvement. However, were it not for €420,974 of turnover in Maltapost plc (MTP) shares - of which €400,000 was in three matched deals - last week's turnover value would have been the lowest for 2008. The yawn-inducing trading sessions were occasionally punctured by the six company announcements issued.
The most significant was issued at the end of trading on Friday, when Malta International Airport plc (MIA) published the interim financial statements for the six months ended June 30, 2008. When compared to the same period last year, MIA registered increases in a) pre-tax profits - up 26% from €4.05 million to €5.11 million; b) earnings per share - up an identical 26%, from 3.89 cents to 4.91 cents; c) turnover - up 9.3% to €20 million; d) passenger through-put - up by 14.5%; e) aircraft movements - up by 4.3%; f) cargo traffic - up by 7.1%; and g) mail - up by 3.5%.
On the other hand, staff costs increased by 5.4% to €4.4 million, while other operating costs were also up by 3.2% to €7.5 million. Depreciation increased 12.7% from €2.05 million to €2.3 million, reflecting the increase in investment in the last six months related to the extension of the air terminal and the resurfacing of the main runway. The significant improvement in performance is largely attributed to the increase in traffic during the period, and the running of the main car park which has been taken over by MIA's wholly owned subsidiary Sky Parks Ltd.
An interim net dividend of 6c per share is being proposed and will be paid to shareholders on the register on July 31, i.e. investors who will have bought shares by July 28.
On the exchange, MIA gave up 5.8c falling to €3.062 on Tuesday's single deal for 2,200 shares. Thursday's four deals were effected at the same level, closing at €3.061 - 1.9% down on the week.
Bank of Valletta plc (BOV) started the week on a positive note rising 5c to €4.65. Tuesday's final deal saw the price inch up a further 2c to €4.67. This latter price set the tone for the rest of the week with all deals carried out at this level as BoV gained 1.5% on the week. Volume was poor with just 20,879 shares changing hands for a market value of €97,069. At the end of Friday's session, the best bid was for 495 shares at €4.65 with offers for 262 shares starting at €4.70.
HSBC Bank Malta plc (HSB) fell back 2c at the start of the week falling to €3.80 on Monday. The rest of the week was spent with this equity trading in very tight range of €3.789 to €3.81 on very slim volumes. The busiest day was Monday when turnover totalled 13,200 shares while the slowest was Thursday with a mere 1,800 shares traded. HSB closed the week at €3.81 - down 0.3%. Turnover totalled 27,640 shares for a value of €105,175. At the end of trading, unsatisfied demand for 263 shares was at €3.79 while supply of 1,000 shares stood at €3.82.
HSB announced on Tuesday that the board is to meet next Friday to approve the interim accounts for the half-year ending June 30 and to consider the declaration of an interim dividend.
GO plc (GO) started the week on Tuesday on a 500-share deal, practically unchanged at €2.598. After no activity on Wednesday and Thursday, selling pressure dragged the price back to €2.50 on Friday. The previous week's gains came undone as Go slumped 3.8% for the week on a total turnover of 7,594 shares for a value of just over €19,000. At the end of trading, bids for 5,395 shares started at €2.45 while offers for 139 shares were at €2.50.
Go and Emirates International Telecommunications Malta Ltd have a strategic shareholding, through their joint venture company Forgendo Limited, in Forthnet S.A. Go announced on Monday that all Forthnet shareholders, as at July 11, will be eligible to participate in a rights issue and subscribe to three shares for every existing share, at a price of €2.57 per share. As at last Monday, Forgendo held 9,964,147 shares in Forthnet. Forgendo will take up all rights to which it is entitled and also apply for the oversubscription rights up to a total maximum investment of €300 million, of which Go will commit a maximum of €100 million. After participating in the rights issue, the average cost per share held in Forthnet will be €4.50 or lower, depending on the amount acquired through the oversubscription rights.
International Hotel Investments plc only traded on Tuesday and Thursday - on anorexic turnover of just 1,500 shares. The price was practically stable at €1.049.
This week again saw a number of 'one-day traders'. Crimsonwing plc (CW) gained a cent to €0.53 on Monday on a single deal for 6,762 shares. Lombard Bank plc only traded on Wednesday in a single deal for 1,093 shares at the unchanged price of €2.90. Simonds Farsons Cisk plc's single trade for 2,135 shares on Thursday saw the price advance to a new all-time high of €2.83. This equity is up 10.5% since the start of the year. Friday saw Fimbank plc's only two deals totalling 8,300 shares. The price advanced 0.5% to $1.869.
CW announced on Wednesday that the directors' meeting scheduled for the previous day, and which was due to consider the approval of the financial statements for the year ended March 31, and the declaration of a dividend, was adjourned to July 29.
Grand Harbour Marina plc (GHM) gave up 5c falling to €2.10 on Monday on a sale order for 5,587 shares. However Thursday's single 850-share deal saw the price bounce 15c to close at €2.25. GHM thus ended the week 4.6% higher, the week's best performer.
MTP commanded 59% of turnover value. It was stable on Monday, then gained a cent to €0.81 on Tuesday on exceptionally busy turnover. Half a million shares changed hands, the bulk of which was executed in three large deals. It was back at 80c for the remaining three days to close the week unchanged. In total, 520,031 shares were traded for a market value of €420,974.
Datatrak plc (DTK) and GlobalCapital plc (GCL) did not trade. DTK announced on Wednesday that the AGM was postponed to August 7, whereas GCL announced on Friday that, with immediate effect, Adrian Galea was appointed chief operating officer, and Oliver Said had resigned from the post of chief business development.
In the Government Bond market, turnover by value amounted to €8.4 million with 43 deals struck in 16 stocks. In the corporate bond market, there were 18 deals for a total turnover value of €63,499. Turnover value in the Treasury Bill market totalled €2.9 million.
This report was provided by J.G.P. Bonello, managing director of Financial Planning Services Limited, of Marina Court, G. Cali Street, Ta' Xbiex, which is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). The company is involved in acting as sponsoring stockbroker and corporate stockbroker. The directors or related parties, including the company and their clients, are likely to have an interest in securities mentioned. E-mail: info@bonellofinancial.com or 2134 4243.