MSE | Wednesday, 27 May 2009

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Local bourse up for second straight session

Yesterday, the local market witnessed a calm session as trading was characterised by slow-moving activity and subdued volumes. The Malta Stock Exchange index reached the three thousand mark as it gained 0.85% to finish at 3025.56 points. The gainers of the day were HSBC Bank Malta p.l.c. and Lombard Bank p.l.c. The shares of Bank of Valletta p.l.c. closed in negative terrain whereas GO p.l.c. shares preferred to stay on the sidelines.
On a positive note, the shares of HSBC Bank Malta p.l.c. took the podium in terms of performance. The share price registered a satisfactory €6c9 gain to finish at the €2.569 level. Volume was low as 5,000 shares were swapped in three trades. At market close, best unsatisfied bids stood at €2.57 for 1,000 shares against best offers of 1,000 shares at €2.59. Week on week the shares of HSBC Bank Malta p.l.c. lost 0.81% from its closing price of €2.59 on Tuesday 19th May.
On even lower volume, the shares of Lombard Bank p.l.c. had a rather slow session with just 1,000 shares changing hands in two transactions. The share price increased €5c0 to close at €2.70. The value traded amounted to €2,700. Meanwhile, the shares of GlobalCapital p.l.c. are currently trading at €1.50.
Remaining on the banking front, Bank of Valletta p.l.c. was the most liquid stock of the day as 12,844 shares were swapped across eleven deals. The share price dropped €0c9 to finish the second session of the week at €2.39. The lowest traded price during the session was €2.39, whereas the highest traded price of the day was €2.40. At the end of trading, bids for 2,468 shares stood at €2.39, whereas the best offer for 10,328 shares stood at €2.40. Bank of Valletta p.l.c. announced on Wednesday 20th May that it has published a prospectus dated 20th May 2009 in respect of a ten-year 5.35% Subordinated Bond issue of €35,000,000 with a nominal value of €100 each bond issued at par, and subject to an over-allotment option not exceeding €15,000,000. The terms of issue include a preferred allotment to BOV shareholders and employees.
On the telecommunications front, GO p.l.c. maintained its previous session price at €1.749 after 5,000 shares were swapped in two transactions. Week on week the shares of GO p.l.c. gained 1.10% from its closing price of €1.73 on Tuesday 19th May.
On Tuesday 26th May, the directors of Datatrak Holdings p.l.c. announced that activity on the International markets was significantly affected by the global downturn. All development efforts are being focused on areas which are seen to have the greatest potential for cash generation. This has required the company to restructure its development capacity. Datatrak have actively sought to maintain sales effort in various markets where they are already present and have suspended the plan to infiltrate new markets until the international situation is more positive. Departments which did not make a significant contribution to margin have been shut down and management reduced. Revenue streams from major projects reserved and have secured a significant loan from their bank guaranteed by the company and the major shareholder.
On Thursday 21st May, Medserv p.l.c. announced that at the Annual General Meeting of the Company held on 19th May 2009, the shareholders considered and approved the resolutions.
On Tuesday 19th May, FIMBank p.l.c. announced that while improved cost management has ensured that overall profit trends remain on budget, interest and fee-based operating sources of income have not shown the same levels of improvement as for the same period of last year. Although the unrealized mark-downs in financial assets, mainly debt securities and credit linked notes, that marked the Company’s performance in 2008 did not continue during the period under review, prospects of any substantive reversals or claw-backs are still difficult to time as the outlook on credit and impairment issues remains very cautious. Otherwise, liquidity and capital adequacy ratios remain healthy and well above the minimum required by regulations. The balance-sheet also remains strong, with more diversified sources of funding. In the second half of April the Group saw its Bond Issue heavily over-subscribed within minutes of opening.
In the fixed interest market, a total of €190,680 (nineteen deals) were transacted in Government Bonds. Meanwhile, a total of €167,659 (twenty-two deals) were transacted in Corporate Bonds.
The turnover value in the Treasury Bill market amounted to €164,730 across one deal.

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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27 May 2009

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