GlobalCapital Financial Management Ltd - Malta Stock Exchange Review
Local bourse turns down for third straight session
Yesterday, the local market remained in negative terrain as the Malta Stock Exchange index lost 0.02 per cent to finish at 3338.47 points. Activity was poor as investors seem to be waiting to see if leading stocks could latch on to a direction.
On the banking front, Bank of Valletta p.l.c. maintained its previous session price at €3.61 after 7,930 shares worth €28,637.74 changed hands in thirteen transactions. At the end of trading, bids for 1,201 shares stood at €3.58, whereas the best offer for 1,500 shares stood at €3.615. The total turnover of the week amounted to 87,959 shares and exchanged across sixty-nine deals.
HSBC Bank Malta p.l.c., the largest capitalization stock on the Malta Stock Exchange’s Official List, followed suit. The share price preferred to stay on the sidelines at €2.91 across a low volume of 732 shares. On Friday 14 November HSBC Bank Malta p.l.c. announced that despite challenging global and local market conditions, core income and profitability levels at HSBC Bank Malta p.l.c. remained satisfactory for the period 1 July 2008 to 30 September 2008. As at 30 September 2008, both customers’ deposits and customers’ loans increased in line with expectations over the prior September end. HSBC Bank Malta p.l.c. issued a €30 million 5.9 per cent subordinated bond to support future business growth. Alan Richards, Director and Chief Executive Officer of HSBC Bank Malta p.l.c. said that the HSBC’s commitment to strong capital and liquidity will stand the Bank in good stead. The Bank is financially sound, liquid and has a conservative balance sheet policy with relatively low reliance on funding from the wholesale markets.
The shares of Grand Harbour Marina p.l.c. were the sole decliners of the day, easing by €5c0 to €1.80 on 1,000 shares. These shares were swapped across a single trade. Week on week this stock lost 10 per cent from its previous session close at €2.00 on Tuesday 11 November.
On Friday 14 November International Hotel Investments p.l.c. announced that since the date of the publication of the Company’s Half-Yearly Report in August 2008, when hotel operating performance was proceeding according to plan, the international hospitality industry has been negatively affected by the worldwide financial crisis. Although as a result of the Group’s diversified portfolio not all IHI-owned hotel properties have been affected to the same degree, the overall expectation for the second half of 2008 is still expected to be affected by the downward trend in average room rates and occupancy levels. To counter this, IHI’s management company CHI has been taking the appropriate measures to limit the impact on the hotels’ profitability. IHI enjoys a healthy liquidity cover and a conservative debt to equity ratio. On the strength of its liquidity position and the current economic scenario, IHI is actively pursuing a number of opportunities that are currently available on the international market.
On Friday 14 November RS2 Software p.l.c. announced that during the second half of the financial year, the company has managed to successfully conclude two new significant contracts. The benefits of both contracts are expected to commence during the final months of 2008 and continue over the next few years. The company had achieved the higher portion of its projected revenue during the first half of the year and as a result the Board of Directors is expecting that the results for the second half of the current financial year will be below those achieved for the first half of the year ending 30 June 2008. During the period, the management and the board of directors of the company have been particularly attentive to the prevailing international economic conditions and to the potential effects these might have on the performance of the company. To date the company has not witnessed any adverse repercussions from its clients. The directors point out that the portion of company’s revenue which is derived from the banking sector is related to the card and payment industry which is not expected to experience any significant declines. Moreover, the company’s client portfolio includes major service providers that continue to bring business to the company as their own client base increase. Except for the effect of the transitional adjustments explained above, the company’s performance and cash generation from operations remain in line with expectations.
Malta International Airport p.l.c. announced on Monday 17 November that following the publication of the unaudited financial statements for the six months ended 30 June 2008, no material events and /or transactions have taken place that would have an impact on the financial position of the Company, such that they would require specific mention, disclosure or announcement pursuant to the applicable Listing Rules, and which have not been otherwise announced through a company announcement. During the period under review, the financial position of the Company has remained sound. For the second half of the year passenger traffic has been less than anticipated. For the period July to October passenger traffic was down by 1.1 per cent over the same period last year and we anticipate this downturn to continue for the remaining months of 2008 and throughout winter 2008/09. However, the Company still expects the passenger throughput for 2008 to exceed 3,100,000 passengers, which is approximately 5 per cent more than last year. In the meantime, the Company has continued with its ambitious programme of enhancement to the Air Terminal building as well as to improve the facilities for passengers and visitors. More shopping areas are expected to come on line by the end of the year and the entire project is expected to be completed by June 2009. Subject to any unforeseen circumstances, the Directors expect the Company’s financial results for the year will be largely in line with the financial projections made at the beginning of the year and with those of the previous year.
Yesterday, in the fixed interest market, a total of €20,085 (3 Deals) were transacted in Government Bonds, whereas a total of €424,679 (29 Deals) were transacted in Corporate Bonds.
The turnover value in the Treasury Bill secondary market amounted to €39,661 (3 Deals).
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).
