MSE | Wednesday, 21 January 2009

The MSE Index finished on the back foot again

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Yesterday, the local market remained in negative terrain for the second straight session, as the Malta Stock Exchange index closed marginally lower by 0.02 per cent or 0.80 points to 3223.21 points. Activity was poor as only Bank of Valletta p.l.c., GO p.l.c. and Santumas Shareholding p.l.c. were negotiated during the session.
Bank of Valletta p.l.c. shares dropped €0c4 to settle at the €2.994 level. The turnover was poor as only 1,829 shares were swapped in four transactions that carried a market value of €5,471.24. At market close, best unsatisfied bids stood at €2.96 for 400 shares against best offers of 2,350 shares at €2.979. Week on week Bank of Valletta p.l.c. lost 0.20 per cent from its closing price of €3.00 on Tuesday 13 January.
On the telecommunications front, the share price of GO p.l.c. maintained its previous session price at €1.87 after 1,500 shares worth €2,805 were swapped in one deal. At the end of trading, bids for 1,955 shares stood at €1.724, whereas the best offer for 6,986 shares stood at €1.87. on a positive note, week on week the share price of GO p.l.c. increased by 6.25 per cent from €1.76 on Tuesday 13 January.
Elsewhere on the board, Santumas Shareholdings p.l.c. shares climbed €10c0 at €3.20 across 24,673 shares. The lowest traded price during the session was €3.10, whereas the highest traded price of the day was €3.20.
On Thursday 15 January the Board of Directors of MaltaPost p.l.c. approved the Preliminary Statement of annual results for the Financial Year ended 30th September 2008. The Board of Directors further resolved to recommend that the Annual General Meeting (AGM) would be held on the 17 February 2009 approves the payment of a final ordinary net dividend of €0.04 per nominal €0.25 share. Once approved at the AGM, this will be paid on the 4 March 2009 to shareholders who are on the Company’s Register of Shareholders as at 22 January 2009. The Board of Directors further resolved to recommend that the aforesaid AGM will also approve that shareholders be given the option of receiving this dividend either in cash or by the issue of new shares. The Attribution Price, at which the new shares to be issued will be determined has been established at €0.77 per nominal €0.25 share. For the year ended 30 September 2008, MaltaPost p.l.c registered a Profit before income tax of €2.90 million as compared to €1.66 million last year, representing an increase of 74 per cent. This increase was mainly due to the increased volumes during the General Election and the philatelic/numismatic issues commemorating the introduction of the euro enhanced performance even further. Earnings per share improved to €0.07 for the financial year 2008 from €0.04 in 2007. Revenue increased by 10.51 per cent from €18.53 million to €20.47 million. Cost-to-Income ratio improved to 87 per cent from 92 per cent in line with the Company’s commitment to contain costs. Total assets increased by 11.5 per cent to €21.4 million from €19.2 million in 2007. Shareholders’ funds increased by 6.39 per cent to €9 million.
In the fixed interest market, a total of €146,085 (Eight deals) were transacted in Government Bonds. The 5.7 per cent Malta Government Stock maturing in 2012 and the 6.65 per cent MGS maturing in 2016 gained 0.08 per cent and 0.25 per cent to finish at €108.79 and €117.24 respectively. Furthermore, the 5 per cent MGS maturing in 2021 and the 5 per cent MGS 2021 FI August 08 increased 0.60 per cent and 1.51 per cent to settle at €104.05 and €104.10 respectively.
A total of €97,159 (Fourteen deals) were transacted in Corporate Bonds. The 7 per cent Pavi Shopping Complex p.l.c. 2014-2017 and the 7 per cent Gap Developments p.l.c. 2011-2013 traded 0.51 per cent and 1.18 per cent lower to finish at €98 and €83 respectively. Meanwhile, the 4.6 per cent HSBC Bank Malta p.l.c. that matures in 2017 and the 8 per cent Bank of Valletta US$ p.l.c. 2010 finished in positive territory from their previous session close by 3.13 per cent and 1.48 per cent at €99 and US$106.25 respectively.
The turnover value in the Treasury Bill secondary market amounted to €4,264,356 (Eight deals).

Issued by GlobalCapital Financial Management Ltd, 120 The Strand, Gzira, GZR1027 for information purposes only and is not intended to constitute any financial, legal or tax advice. This write up is not to be taken as investment advice to buy or sell any investment. Investors should seek professional advice prior to taking investment decisions and should note that the value of investments may fall as well as rise. Readers who would like more information are invited to send an E-mail to or Tel: 21 342342. GlobalCapital Financial Management Ltd is a member of the Malta Stock Exchange and is licensed by the Malta Financial Services Authority (MFSA).


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21 January 2009

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