MSE | Wednesday, 14 May 2008

No gains in equities recorded

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Yesterday, the Malta Stock Exchange index surrendered 12.57 points or 0.28 per cent to close the second session of the week at 4451.11 points. The local bourse saw sluggish trading predominantly in the red today and no gainers were recorded.
Large-cap Bank of Valletta p.l.c. was the most liquid stock of the day as 10,715 shares were swapped across twelve transactions. The share price slipped €2c0 (LM0.009) to settle at the €5.05 (LM2.168) level. The price shifted in a very tight range of €5.049 (LM2.168) to €5.051 (LM2.168). At market close, best unsatisfied bids stood at €5.02 (LM2.155) for 500 shares against best offers of 1,285 shares at €5.05 (LM2.168).
GlobalCapital p.l.c. was the main decliner of the day as the share price tumbled €17c6 (LM0.076) to finish at the psychological level at €3.00 (€1.288). However, the volume was extremely low as 400 shares changed hands across a single trade.
It was a relatively quiet day for Lombard Bank Malta p.l.c. shares. On slim turnover of 1,420 shares, the share price traded €1c4 (LM0.006) lower at €3.235 (LM1.389). At the end of trading, bids for 4,800 shares stood at €3.127 (LM1.342), whereas the best offer for 15,845 shares stood at €3.235 (LM1.389).
Go p.l.c. and Crimsonwing p.l.c. also weighed on the index. Their share price retreated €4c0 (LM0.017) and €1c1 (LM0.005) to settle at the €2.90 (LM1.245) and €0.54 (LM0.232) level, respectively. A total of 1,525 shares changed hands in GO p.l.c., whereas 8,812 shares were swapped in Crimsonwing p.l.c.
On Friday 9 May, GO p.l.c. announced that results for the period are in line with its expectations and at levels similar to those registered for the same period in 2007. The Group increased its overall client base by 1.2 per cent due to continued growth in the broadband, television and mobile sectors. As a result of the said growth, the Group maintained its turnover levels despite a decline in traditional fixed-line voice services. Earlier this year, the Group announced its acquisition of 50 per cent of the share capital of Forgendo Limited, which has subsequently acquired a shareholding of approximately 21 per cent in Forthnet SA, a Greek telecommunications operator providing broadband and fixed voice services. Notwithstanding the investments during the period, the Group’s balance sheet remains strong, and is driven by continued healthy cash generation from operations. Further investments in Forgendo Limited are expected to be financed through bank borrowings which will leverage the Group within acceptable levels.
Meanwhile, HSBC Bank Malta p.l.c., International Hotel Investments p.l.c., MaltaPost p.l.c. and Grand Harbour Marina p.l.c. maintained their previous session price at €4.15 (LM1.782), €1.07 (LM0.459), €0.80 (LM0.343) and €2.05 (LM0.88) respectively.
On Thursday 8 May, HSBC Bank Malta p.l.c. announced that Mr Shaun Wallis resigned from his post as executive Director with effect from 5 May 2008. Mr Wallis was replaced in the post of executive Director by Mr Alan Christopher Hugh Richards and this with effect from 7 May 2008. Mr Richards was formerly Director and Deputy Chief Executive Officer HSBC Australia, Director and Head of Retail Banking, HSBC Bank A.S. Turkey and previously Director HSBC Broking Asia and prior to that General Manager HSBC Bank Malaysia. Furthermore, no matter concerning Mr Richards requires disclosure under Listing Rules 8.16.3 to 8.16.8. The composition of the Board is now as follows; Mr Albert Mizzi – Chairman, Mr Alan Richards, Mrs Sally Robson, Mr David Charles Budd, Dr Philip Farrugia Randon, Mr Charles J. Farrugia, Mr Victor Scicluna, Mr Peter Paul Testaferrata Moroni Viani and Mr Saviour sive Sonny Portelli.
On Monday 12 May, 6pm Holdings p.l.c. issued the Audited Financial Statements for the year ended 31 December 2007. During the 5 month period ended 31 December 2007, the group registered a profit before taxation of GBP 275,881. This represents a return of 15 per cent of the shareholders’ funds. Profits attributable to shareholders were GBP 314,265 and earnings per share for the five-month period amounted to GBP 0.068. The gross profit for the period amounted to GBP 1,023,459, equivalent to 35 per cent of total revenues. Net operating costs amounted to GBP 711,191 which mainly represents employee costs amounting to GBP 455,543. A tax credit for the period amounted to GBP 38,384 which arose given that the group is eligible to income tax credits on its investments on certain of its tangible and intangible assets. Group total assets at balance sheet date stood at GBP 3,792,327. At the balance sheet date, the group had capitalised intangibles of which GBP 1,149,182 represents goodwill on the acquisition of the two subsidiaries. The board of directors declared the payment of a net interim dividend in 2008 of GBP 100,988 on 2007 group results, representing a net dividend of 45 per cent of distributable profits equivalent to GBP0.013 per share. This dividend will be paid to all shareholders on the company’s share register at close of trading on the Malta Stock Exchange on 25 April 2008.
Following a company announcement issued by Plaza Centres p.l.c. on Monday 12 May, the said Company announced that during the period 1 January 2008 and the date of this announcement, there were no material events and/or transactions which may have had an impact on the financial performance of the company such that they would have required specific disclosure in terms of the Listing Rules. Throughout this period, the financial position of the company remained sound and the performance of the company is in line with:
1.the directors’ expectations;
2.the trend reported by the company in its Audited Financial Statements for the year ended 31 December 2007 and approved by the shareholders at the Annual General Meeting held on the 25 April 2008.
Following a company announ-cement issued by International Hotel Investments p.l.c. on Tuesday 13 May the said Company announced that the development agreement on the Metropole Hotel and 10 Whitehall Place in London was signed by IHI and its partners, LFICO and Nakheel with The Crown Estate on 15 April 2008. The principal consultants on the refurbishment project have been appointed and discussions are currently under way with the Westminster Council planning authorities in order to obtain planning consent. During the period under review work proceeded to the final phase of the Spa and Health Centre at the Corinthia Hotel Lisbon, while work is on schedule on the refurbishment project at the Corinthia Nevskij Palace Hotel, and the development of the two adjoining sites in St Petersburg. During the first quarter the Company’s operating subsidiary CHI Limited and the hotels owned by IHI through wholly-owned subsidiaries continued to register progress, both on the original hotels and the two hotels, the Corinthia Bab Africa Hotel in Tripoli and Corinthia Hotel Prague acquired in 2007. Revenues for the first quarter of 2008 amounted to €24.72 million for the six properties while the corresponding figure for 2007 on four properties amounted to €10.99 million. Similarly, gross operating profit went up to €7.28 million from €1.29 million in 2007.
Yesterday, Malta International Airport p.l.c. announced that with immediate effect from the Annual General Meeting held on 24 April, Ms Jackie Camilleri was appointed as a non-Executive Director of the Company for a term of three years.
Medserv p.l.c. announced that as reported in the Chairman’s statement accompanying the audited financial statements for the financial year ended 31 December 2007, the 4page 19
Company experienced an increased activity during the latter half of the said year. This has continued during 2008 to date. Equipment and materials have started reaching both the Company’s bases in Malta and Libya in preparation of exploration activity off shore Libya. Furthermore, the business generated from operations in Egypt and Tunisia has resulted in an increased turnover. The first quarter results show that both centres of activity namely Malta and Misurata in Libya have produced satisfactory profits in each of the months making up the quarter, and present indications are that this level of profit will continue for the remainder of the current financial year.
In the fixed interest market, a total of €10,634,692 (LM4,565,473.28) (8 Deals) were transacted in Government Bonds, whereas a total of €21,390 (LM9,182.73) (6 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 [email protected] 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).