MSE | Wednesday, 29 July 2009

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

A strong volume helps BOV p.l.c. shares to shine

Yesterday, the local market witnessed a hectic session as nine equities were negotiated. The Malta Stock Exchange index closed 1.27% or 40 points higher at 3199.34 points. The sole loser of the day was Middlesea Insurance p.l.c.
Large-cap Bank of Valletta p.l.c. took the podium in terms of performance and liquidity. The share price increased a whopping €11c0 to hit the €2.87 level. Volume was strong as 40,679 shares were swapped across twenty-one trades. These shares carried a market value of €113,800. The lowest traded price during the session was €2.77, whereas the highest traded price of the day was €2.87. On Monday 27th July, Bank of Valletta p.l.c. announced, that during the financial period commencing on 1st April 2009 up to the date of this Announcement, no material events and/or transactions have taken place that would have an impact on the financial position of the Bank or the Group, such that they would require specific mention, disclosure or announcement pursuant to the applicable Listing Rule. Following the extreme conditions that prevailed during the first half of the current financial year, a sense of calm and cautious optimism has very gradually emerged in the international financial markets since the middle of March. As a result of these improved capital market conditions, the third quarter has seen a write-back of a proportion of the markdowns incurred on the Financial Markets and Investments book during the first six months. Competition for deposits remains keen, and this has been reflected in average rates continuing at levels well above the ECB intervention rate. Overall, the profitability of the Bank for the third quarter was significantly higher than that reported for the half year, principally as a result of the Financial Markets portfolio write-backs. Looking forward, it is very much hoped that the growing confidence in the credit markets will be sustained. Liquidity has been maintained at a high level, and the successful €50 million bond issue completed in June has added a further 1.5% to the already very strong Capital Ratios.
Remaining on the gainers of the day, the shares of HSBC Bank Malta p.l.c. were also in the limelight. The share price climbed €5c9 to finish at €2.999 across 36,350 shares. The price shifted in a very tight range of €2.94 to €2.999 across twenty-three deals. At the end of trading, bids for 2,700 shares stood at €2.965, whereas the best offer for 1,350 shares stood at €2.999.
The shares of Lombard Bank Malta p.l.c. was another stock that managed to stay above water. The share price registered a €1c0 gain to close the second session of the week at €2.60 across 3,000 shares. Week on week, the shares of Lombard Bank p.l.c. gained 2% from its closing price of €2.549 on Tuesday 21st July.
In the fixed interest market, a total of €95,861 (ten deals) were transacted in Corporate Bonds. Meanwhile, a total of €282,910 (twelve deals) were transacted in Government 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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29 July 2009


Malta Today


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