MSE | Wednesday, 20 May 2009

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Leading banking stocks closed on the back foot

Yesterday, the local market remained in negative territory as the Malta Stock Exchange dropped 7.03 points or 0.23% to finish at 3010.06 points. Large-caps finished on the losing side, whereas Malta International Airport p.l.c. was the sole gainer of the day.
Bank of Valletta p.l.c., the third largest Capitalisation stock, edged lower by €0c9 at €2.39 across 3,515 shares. These shares shifted in a very tight range of €2.39 to €2.398. Week on week, Bank of Valletta p.l.c. lost 0.21% from its closing price of €2.395 on Tuesday 12th May.
Remaining on the banking sector, the shares of HSBC Bank Malta p.l.c. traded €0c9 lower to settle at the €2.59 level. Volume was low as 1,000 shares were swapped in a single trade. On Friday 15th May, HSBC Bank Malta p.l.c. announced that trading conditions in 2009 for the financial services industry in Malta continue to be extremely challenging. In line with expectations, core income and profitability levels at HSBC Malta were affected by the global downturn in the period under review.
On Friday 15th May GlobalCapital p.l.c. announced that since the publication of its preliminary statement of annual results for the financial year ended 31st December 2008, no material events and transactions have taken place that would have an impact on the financial position of the Company, such that would require specific mention, disclosure or announcement pursuant to the applicable Listing Rules.
On Friday 15th May, Lombard Bank p.l.c. announced that downward pressure on lending interest rates on the one side and a conscious decision to increase retail deposits by offering keen rates continued throughout the period under review thus contributing to a tighter net interest margin. One-off revenues registered last year and which had contributed significantly to the income for that year, were not repeated this year and to-date, therefore, it is not realistic to expect the same level of record profits realised last year.
On the telecommunications front, GO p.l.c. shares was the most liquid stock of the day as 43,634 shares were traded. The share price surrendered €1c9 to finish the second session of the week at €1.73. At the end of trading, bids for 1,000 shares stood at €1.68, whereas the best offer for 2,500 shares stood at €1.749. On 14th May, the Company announced that the period under review is characterized by the continued extraordinary economic events which are negatively impacting GO’s performance.
On a positive note, the shares of Malta International Airport p.l.c., traded €0c9 higher to close at €2.179 on slim turnover of just 799 shares.
Elsewhere on the board, Simonds Farsons Cisk p.l.c., FIMBank p.l.c. and Medserv p.l.c. traded sideways without affecting their previous session close at €1.869, US$1.29 and €3.55 respectively.
On Monday 18th May FIMBank p.l.c. announced that, with effect from this date, Mr. Gerard Lohier, was appointed Director. Furthermore, FIMBank p.l.c. announced that, with effect from 1st March 2009, Mr. Renald Theuma, has been appointed Executive Vice President. There are no matters concerning Mr. Lohier and Mr. Theuma that require disclosure under Listing Rules 8.16.3 to 8.16.8.
On Thursday 14th May, Medserv p.l.c. announced that in the first quarter of 2009, the Medserv group of companies maintained a satisfactory level of activity despite the significant drop in the price of oil. Operations are forecasted to be maintained and increased throughout the rest of the year. The first quarter results show that the Group achieved a profit figure in line with expectations and at levels similar to those registered for the corresponding period in 2008.
On Friday 15th May, the Board of Directors of Middlesea Insurance p.l.c. announced, that during the first quarter of 2009, the deterioration in the technical performance of the Italian Operation together with continued volatility in the capital markets persisted. Since the end of the first quarter and up to date of this announcement, no material events or transactions have been noted.
The Board of Directors of 6PM Holdings p.l.c. announced on 18th May, that they expect to accomplish marginal profitability to the end of June 2009 and in this respect the results reported for the first half of the current financial year will be similar to those achieved during the same period the previous year.
On Monday 18th May, International Hotel Investments p.l.c. announced that the renovated Corinthia Hotel St Petersburg will be inaugurated on 25th May 2009. In London, following the signing of the syndicated bank loan agreement, progress on the development of the Corinthia Hotel and Residences London registered a significant milestone with the awarding of a turnkey contract to Ardmore Construction, a major construction company in the UK, following an extensive tendering exercise. At the Corinthia Hotel Lisbon the Spa and Health Centre project is nearing its final stages and it is expected to be in full operation by mid-June 2009.
On Tuesday 19th May, Plaza Centres p.l.c. announced that during the first quarter of 2009, the Company maintained a satisfactory level of performance according to the Directors’ expectations, despite difficult market conditions. Between January and April 2009, the Company embarked on a refurbishment programme of the Shopping Centre; this was effectively completed at the end of April 2009. Furthermore, the company received a Full Development Permit from the Malta Environment and Planning Authority to develop the company’s next extension in Bisazza Lane.
In the fixed interest market, a total of €952,702 (twenty-one deals) were transacted in Government Bonds. Meanwhile, a total of €58,657 (nine deals) were transacted in Corporate Bonds.

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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20 May 2009

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