In a slow week with total equity turnover by value coming in at Lm393,342 - the lowest for this year - Simonds Farsons Cisk plc (SFC) was the best performer, up 5.7% to 74c, although turnover was a meagre 2,091 shares. Lombard Bank plc (LOM) was the second best performer gaining 3.5% to Lm4.68.
Malta International Airport plc (MIA) also ended the week in positive territory, advancing from a week's open of Lm1.33 to close at Lm1.35. The only other equity that closed the week in positive territory was Middlesea Insurance plc (MSI); here the gain was a muted 0.6% on a miniscule turnover of 487 shares. MSI announced on Wednesday that the board will meet on September 22 to approve the half-yearly results to June 30.
GlobalCapital plc (GCL) headed the list of the week's worst performers, shedding 4.3% to end the week at Lm2.01. On Monday the company published its interim financial statements for the six months ended June 30, which were approved by the board on September 8. A gross interim dividend of two cents per share has been declared. This will be paid on September 29 to shareholders on the register yesterday. GCL registered a profit before tax of Lm1.07 million - an increase of 59.3% over the same six months last year. Operating profits increased by 51% to Lm658,316 with gains on investment property registering the largest proportion of the gain from Lm30,000 to Lm772,740. Earnings per share increased 40% from 4c to 5.6c.
HSB Bank Malta plc also lost ground during the week. It started off at Lm2.149 and peaked at Lm2.15 on Tuesday. It continued to lose ground, crashing to a low of Lm2.10 during yesterday's session, before recovering to a Lm2.11 close, 1.8% down on the week. At the end of trading the best bid was 246 shares at Lm2.10, while the best offer for 4,150 shares stood at Lm2.12.
Maltacom plc (MLC) also closed the week in negative territory. It kicked off the week at Lm1.781 and yo-yoed for the rest of the week, trading as high as Lm1.87 on Wednesday. However, selling pressure dragged the price to successively lower prices, with MLC crashing to a 2006 low of Lm1.76 by yesterday's close. At the end of the session, the best bids were for 176 shares at Lm1.70 and the best offers started at 900 shares at Lm1.80.
The company released its results for the six month period ending June 30, 90 minutes after the close of yesterday's trade. MLC recorded a profit before tax of Lm6.3million - 18% less when compared to Lm7.7million over the same period last year. Earnings per share also declined an identical 18% from 5c to 4c1. The board approved the payment of an ordinary interim dividend of 1c5 per share net of tax (2005 net interim dividend: 2c per share). This will be paid on October 27 to shareholders on the register on September 22.
While revenue declined a negligible Lm128,000 (0.5% of Lm26.6 million) the cost of sales increased by 8.34% to just over Lm14 million.
The annualised return on average shareholders' funds is down to 13.9% from 18.2% on the same period last year. The percentage return on the average total assets employed also declined from 13.4% to 10.9%.
Net operating costs increased by 6.8% to Lm20.5 million, Lm1.3 million higher than the comparative six months to June last year. The net operating costs are mainly made up of interconnection charges with other operators, labour charges and depreciation.
It is worth noting that the above are MLC's last set of accounts as a parastatal company. They reflect a transitional period during which the sale of government's majority shareholding must have generated uncertainty and likely management inertia. The Tecom takeover effect should filter through in the second half of the year.
Fimbank plc closed 0.5% lower at US$1.839, on a slim volume of 3,800 shares.
Three equities, Bank of Valletta plc (BOV), International Hotel Investments plc (IHI) and Datatrak (DTK) ended the week unchanged:
BOV started and ended the week at Lm3.65, despite spiking to a Lm3.70 high mid-week. Selling pressure, however, always pulled the price back to Lm3.65 for a flat performance on the week. At the close of trade best bids totalled 1,500 shares at Lm3.628, while supply for 1,400 shares started at Lm3.65.
IHI was out of favour in the early part of the week, dropping one Euro cent to Eur0.94. It recouped its loss during yesterday's comparatively busy session to end the week unchanged. A company announcement released on Tuesday confirmed that as per the AGM's proposal to raise new equity, 2,500,000 IHI shares of Euro 1 each will be issued and allotted to HSBC No-Load Funds SICAV plc.
The government bond market was significantly busier this week with 68 deals for a turnover by value of Lm2,262,344. In the corporate bonds market turnover by value reached Lm43,313 spread over 20 deals.
Financial Planning Services Limited, tel. 2134 4244, fax. 2134 1202, email: info@bonellofinancial.com
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