Record profits for HSBC

The Malta Stock Exchange Index edged 0.1 per cent higher to close at 4,719.63 points during a week in which activity was high, especially in HSBC Bank, Bank of Valletta's and FIMBank's shares which accounted for 72 per cent of the turnover in the equity market.

A total of 427 deals were registered on the stock exchange for a turnover above €11.7 million. In the equity market 311 deals were executed for a traded value of €1.7 million, while 106 transactions were performed in local corporate bonds and government stocks for a turnover just above €7 million. In addition, 10 deals were executed in Treasury bills for €3.03 million.

HSBC Bank shares declined by one per cent on a week-on-week basis to close at the €4.60 level, after having been traded at weekly highs and lows of €4.64 and €4.278 respectively. This was attained on a volume of 105,370 shares which changed hands across 107 deals. Following the closure of Tuesday's session, HSBC's board of directors issued the preliminary statement of annual results for the financial year ended December 31, 2007, in which it was noted that HSBC and its subsidiaries generated a profit on ordinary activities before tax of €114.70 (Lm49.2) million, an increase of €18.3 (Lm7.8) million or 19 per cent, compared to 2006. Profit attributable to shareholders also increased, by 22 per cent over the previous year's figure. The board of directors also resolved to recommend the approval of a final ordinary dividend of €0.148 (Lm0.064) gross per share, to be paid on April 29.

Following the previous week's 10 per cent decline in Bank of Valletta's shares, the equity recouped 3.5 per cent this week to close at €5.85. This was achieved on a volume of nearly 88,000 shares which were transacted across 116 deals. Also within the banking sector, FIMBank saw 193,480 shares changing hands over eight deals to close unchanged at the US$2.00 level.

Go advanced a further one per cent to close the week at €3.08 on a volume just above 49,000 shares. Malta International Airport edged 0.6 per cent higher to €3.20 on a volume of 31,389 shares which swapped hands over 16 deals, while Simonds Farsons Cisk's shares also added 0.6 per cent on a weekly basis to close at €2.375. The top equity performer of the week was, however, Plaza Centres, which saw its shares rise by 6.3 per cent or €0.10 to €1.70, having negotiated 11,150 shares across three deals.

International Hotel Investments, on the other hand, declined nearly two per cent to close at the €1.00 level. Yesterday, the company, however, announced that it signed a memorandum of understanding with Libyan Foreign Investments Company for a joint-venture agreement to develop a five-star hotel on the waterfront in central Benghazi, Libya's second largest city.

Crimsonwing was among the equities to close in the red, having suffered a 1.2 per cent drop over the previous week. Crimsonwing announced in its interim director's statement published on Wednesday that the company recorded strong sales performance during the second half of the financial year and is set to achieve the revenue projections. Moreover, it was noted in the statement that there continues to be strong demand across all three business areas - e-business, dynamics and custom solutions. On a negative note, however, the overall profitability for Crimsonwing may be negatively impacted by the erosion in the exchange rate of the UK sterling to the euro.

Back to trading on the local stock exchange, Middlesea Insurance lost 1.4 per cent on a minor deal to close at €3.65, while Grand Harbour Marina closed stable at €1.73 also on a single transaction. In addition, Maltapost shares shed 0.8 per cent on a volume of 79,902 shares to close at €0.66.

With regard to the bonds market, a total of 16 government stocks were active, a good number of which declined in their prices. The total turnover in this sector amounted to over €5.3 million with the 4.8 per cent MGS 2016 (II) and 5.4 per cent MGS 2010 (IV) registering the highest volumes. On the other hand, a total of 14 corporate bonds were traded for a value above €1.62 million with the 4.6 per cent the majority of the traded value registered over the week.

This article which was compiled by 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 please contact JFMS at 67/3, South Street, Valletta or on tel: 2122 4410 or e-mail jmizzi@jmfs.net.