BOV and HSBC shares give index a boost

The Malta Stock Exchange index closed the second week of the month up as outlook towards financial equities improved, as the latter were the main contributors to this week's gain. In fact, the index managed a gain of 2.54 per cent on the week to reach 3,826.691 points, hence on the year the index is up by 10.5 per cent. The exchange traded during four sessions this week due to a public holiday on Wednesday, all of which ended in positive territory. Activity in the equity market during the week was on the low side as the number of deals declined to a yearly low of 26 on Thursday, while volume traded increased only yesterday after a three-day decline. Fourteen equities were active seven of which registered gains, six equities closed the week unchanged, and only one equity lost some ground.

Total transactions for the week amounted to 277 deals as turnover totalled €3.2 million. In the equity market, 147 deals were executed for a total value of €531,877, while in the corporate bonds market 73 transactions, for a similar value of €530,267, were executed. Fifty-five transactions in government bonds were executed for a total value of €967,526. Two transactions of over €1.1 million in the Treasury bills market were executed.

Bank of Valletta plc registered a respectable gain over the week, having gained 4.65 per cent or €0.151 to close at €3.40. Volume traded increased on Tuesday as demand for the equity increased following a weekly trading low of €3.20 recorded on Monday. Throughout the week a total of 28,855 shares were dealt over 38 transactions. BOV's year-to-date positive performance stands at just under 10 per cent. Yesterday the bank announced that it received approval to issue a €50 million, 4.80 per cent Subordinated Bonds maturing in 2020 at €100 per Bond issued at par, subject to a further €20 million in case of over-allotment.

HSBC Bank Malta plc also managed a gain of 2.37 per cent, despite having closed the previous two weeks in decline. The equity's price fluctuated between €3.761 and €3.88, however, only managed to end the week at €3.85 as over 37,000 shares were negotiated. Year-to-date the bank is up 19.2 per cent.

Meanwhile, Middlesea Insurance plc shares gained 2.74 per cent on the week, with the gains of the initial two sessions being enough to outweigh the losses recorded in the final sessions, as some shareholders decided to dispose of their shares, as early on Thursday the company announced that its Italian subsidiary Progress Assicurazioni SpA will cease writing business and take the necessary measures to wind up the company. The equity lost €0.05 following the announcement, while closing the week at €0.75 as 21,112 shares were traded.

FIMBank plc was active on two sessions as 6,370 shares changed hands across three transactions. The equity managed a 3.51 per cent gain to close the week at $1.18. One deal of 1,000 shares in Global Capital plc left the price unchanged at €1.90.

Go plc for the second week running closed in the green, having hit €2.30, hence a meagre gain of €0.001 or 0.04 per cent throughout the week. Volume of shares traded amounted to 37,160 shares as 21 deals were executed.

Meanwhile, Malta International Airport plc regained some of last week's losses as the equity ended the week at €3.05, up 5.17 per cent. Only 14 transactions were executed, however volume of shares traded was the highest for the week, at 38,400 shares. Minutes after yesterday's session, the airport operator announced that during the month of January the company registered a seven per cent increase in passenger movements when compared to the corresponding month of 2009.

On the contrary Grand Harbour Marina plc closed the week in decline as one deal of 534 shares depreciated the price almost seven per cent to close the week at €1.74. Yesterday the company announced that due to strong demand for its €12 million bond issue maturing between 2017 and 2020 carrying a coupon of seven per cent, subscription lists were closed immediately after opening.

International Hotel Investments plc closed 2.56 per cent up, at €0.80 as five deals of 17,128 shares were transacted. On the contrary, Maltapost plc closed unchanged as on Tuesday the equity unleashed exactly what was gained during the previous session, hence ending at €0.75. Similarly, Simonds Farsons Cisk plc was active over two sessions, during which the equity traded at €1.72, last week's closing price.

One deal each of 3,000 shares in Medserv plc and in Plaza Centres plc left the equities' prices unchanged at €4.25 and €1.65 respectively, while from the IT sector 6pm Holdings plc was the only active equity, as 3,650 shares left the price unchanged at £0.50.

Meanwhile Crimsonwing plc last Thursday announced that during the first weeks of the year the company is experiencing increased demand for its software and services solutions with revenues held steady and compare favourably with the previous year. The companies cost savings measures have had a positive impact on overall operational profitability. The accountant general announced the prices of the government stocks it will be issuing as of next Monday. The 3.75 per cent MGS 2015 (VI) will be issued at €100.25 and the 4.6 per cent MGS 2020 (II) F.I. (February'10) will be issued at €100.

This article, which was compiled by Jesmond Mizzi, managing director of 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 contact JMFS at 67/3, South Street, Valletta or on tel. 2122 4410 or e-mail jmizzi@jmfs.net.