Financial news

Trading at the Malta Stock Exchange for the last day of the week resulted in yet another decline in the Index which shed a further 1.05 per cent to terminate the session at 2,863 points. There were no gainers on the day as the two largest financial services providers dragged the Index lower.

Bank of Valletta was the most liquid and actively traded equity during the session as a total of 62,673 shares were exchanged over 25 deals and a market consideration of €141,288. The financial services company incurred a minor loss of 2c or a one per cent decrease to settle at €2.25.

In anticipation of its preliminary set of results for the year ending December 31, 2008, HSBC Bank Malta posted yet another negative outing as the banking equity was the day's worst performer. The listing depreciated by 7c or a three per cent drop in share price to close at €2.28. Activity was spread over 10 deals for a market value of €24,947.

After the session, the Bank issued its preliminary statement of annual results, announcing a profit before tax of €96.1 million for the group. This represents a decline of 16.2 per cent compared to the €114.6 million registered in 2007. The board is recommending a final net dividend of €0.062 per share which when added to the €0.077 paid for the interim period, represents a dividend payout of 64.3 per cent.

Malta International Airport was also active during the session as 2,800 shares were transacted over five deals for a value of €6,796. The airport operator lost a negligible one-fifth of a cent to end the session at €2.43.

On the other hand, Plaza Centres was the only non-mover for the day as the equity saw the execution of a single deal for a mere €336.

Weekly MSE equity report

The Malta Stock Exchange continued on its negative trend throughout the week as the Index shed a further 3.6 per cent to close at 2,863 points which is the lowest level recorded for the Index in more than five years. In the financial services sector the two largest equities in terms of market capitalisation were the week's worst performers as both listings ended at new lows.

Bank of Valletta was the week's most actively traded equity. The financial services company continued to register a decrease in share price as it shed 7.91 per cent to close at €2.25.

HSBC Bank Malta was also in red as the equity lost almost seven per cent in price. The bank announced its full year results ending December 2008 yesterday for the end of the trading session. HSBC Bank Malta and its subsidiaries generated a profit before taxation on ordinary activities of €96.1 million, a decrease of €18.6 million from the previous year. The bank continued to enjoy strong levels of liquidity and capital and its lending book was underpinned by good credit quality.

Lombard Bank Malta was also active during the week as the equity lost a further 5.77 per cent to close at €2.45.

FIMBank registered no change in price as a single deal was exchanged, similarly, Plaza Centres was another non-mover.

Malta International Airport and Middlesea Insurance both registered some marginal drop in prices, as the equities shed 0.08 per cent and 0.19 per cent to close at €2.43 and €2.60 respectively.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.