MSE | Wednesday, 17 September 2008

GlobalCapital Financial Management Ltd - Malta Stock Exchange Review

Malta Stock Exchange in line with international market

Yesterday, the Malta Stock Exchange index lost 101.625 points today, or 2.56 per cent, to close the session at the level of 3,866.807 points. The banks whose shares traded today all lost in value, with HSBC Bank Malta p.l.c. worst hit.
In twenty-four deals for 27,400 shares, local large-cap HSBC Bank Malta p.l.c. finished down by €19c9 to close at 3.20, down by 5.85 per cent on the day. Week on week, HSBC Bank Malta p.l.c. lost a notable 5.61 per cent from its closing price of €3.39 on Tuesday 9 September.
Shares in Lombard Bank p.l.c. were traded in three deals for 2,432 units and closed down by €0c5 to €3.07. The total turnover of the week amounted to 3,228 shares and swapped across five deals. In three transactions for a high volume of 104,100 shares FIMBank p.l.c. closed down USD0c4 to close at USD1.904.
Elsewhere on the board, International Hotel Investments p.l.c. traded six times for 27,981 shares to close down by €4c0 to close at €1.01. Week on week, International Hotel Investments p.l.c. decreased 2.89 per cent from its closing price of €1.04 on Tuesday 9 September.
This was also a neutral session for GO p.l.c. and Maltapost p.l.c. which, though exchanging 1,300 and 17,500 shares remained at the levels of €2.31 and €0.80 respectively.
On Monday, 15 September 2008, Bank of Valletta p.l.c. announced that on 1 August 2008, the said Company issued Company Announcement BOV/158, in which it commented on the results for the third quarter of the current financial year. The announcement noted that after a period of relative calm between mid March and mid June, the international capital markets had witnessed a renewed bout of volatility that had been predominantly experienced in the equity sector, with the fixed income markets being affected to a much lesser extent, particularly when compared with conditions earlier in the year. It was also noted that any additional markdowns that had been required to the date of the announcement had been comparatively modest. The Directors observed that, subject to this state of affairs continuing, and the volatility not spreading to the fixed income sector, the Board expected that the results for the second half of the current financial year would show a significant improvement over those reported for the first half. The collapse of Lehman Brothers announced yesterday has triggered a fresh round of disruption in the wider global credit markets, resulting in greater volatility and the widening of credit spreads. Coming so close to Bank of Valletta plc’s financial year end (30 September), it is likely that these conditions will have a material adverse impact on the results for the last quarter of the current financial year. The Bank’s portfolio includes a holding of Senior (non-subordinated) Lehman paper. Although it is too early to determine what recoveries will be made there from, it is believed that any ultimate loss that may arise from this holding will be modest in the context of the results of the Bank for the current financial year to date. The results for the Bank of Valletta Group for the year ending on 30 September 2008 will be notified to the Malta Stock Exchange on 31 October 2008.
On Monday 15 September Maltapost p.l.c. announced that GasanMamo Insurance Limited has, on Wednesday 10 September 2008, fallen below the threshold of 5 per cent voting rights of Maltapost p.l.c. In terms of Listing Rule 8.117, Maltapost p.l.c. confirmed that, as at 10 September 2008:
1. The shareholding position in terms of voting rights amounted to 1,229,366 shares, equivalent to 4.391 per cent of the issued share capital of Maltapost plc;
2. Voting rights for all shares are effectively held in the name of GasanMamo Insurance Ltd;
3. The date on which the 5 per cent threshold was crossed is 10 September 2008;
4. The identity of the shareholder is GasanMamo Insurance Ltd, company registration number C3143, of Head Office, Msida Road, Gzira GZR 1405, Malta.
In the fixed interest market, a total of €108,936 (6 Deals) were transacted in Government Bonds, whereas a total of €22,480 (8 Deals) was transacted in Corporate Bonds during the past week.

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).