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MSE Index continues to gain

11 January 2010 15:05

The local market kicked off the week on a positive note as the Malta Stock Exchange index gained 2.33% to close at 3737.99 points.

· On the banking front, HSBC Bank Malta p.l.c. gained a notable €20c0 to settle at the €3.90 across 25,347 shares. At the end of trading, bids for 7,910 shares stood at €3.90, whereas the best offer for 2,500 shares stood at €3.95.

· Large-cap Bank of Valletta p.l.c. witnessed a positive session too. The share price climbed €3c0 to finish at €3.99 across 45,161 shares. The low of the day was €3.98 whereas €3.99 was the highest price that it managed to reach.

· On a negative note, the shares of Lombard Bank p.l.c. dropped €2c0 at €3.15 across 450 shares. Furthermore, the shares of FIMBank p.l.c. gained $4c0 at $1.16 across 13,381 shares.

· GlobalCapital p.l.c. and GO p.l.c. increased €3c1 and €3c0 to settle at the €1.475 and €2.17 respectively.

· Meanwhile, the shares of Middlesea Insurance p.l.c. and MaltaPost p.l.c. finished unchanged at €0.94 and €0.72 respectively.

U.K. - Market News & Gossip

· Deloitte suggests that Tesco has fallen out of the world’s top three largest retailers, moving to third spot, now behind Germany’s Metro.

· Insurers will be eyed as claims start to materialise over the recent big freeze, with many insurers being swamped with calls in recent days for minor motor accidents.

· Transport groups will also stay in focus as transport links in the UK and continental Europe remain affected by the weather, such as Frankfurt airport closed over the weekend, Geneva closed today and Eurostar having only a limited service due today.

· The Sunday Mail suggests buying HMV ahead of its results on Wednesday, while the FT states that despite the already string gains Michael Page should still be held as its long term potential remains good.

E.U. - Market News & Gossip

· The head of the FSB has stated that the general financial markets situation was much better than a year ago but that fragility remains in the system.

· While the ECB’s Novotny has stated that excessive risk taking is not a major problem in the Eurozone.

· The likes of Repsol and Telefonica will be eyed after Hugo Chavez devalued the Bolivian currency over the weekend hoping to boost local production, with the natural risks of increasing inflation.

· Vivendi is reportedly offering to buy all of the remaining outstanding shares of Brazil’s GVT.

· The chief of Total states that crude is seen between $60-100 in 2010.

· Veolia Environment has responded to talk and denied that it has told managers internally that its full year EBITDA would be closer to 10% than the 5-6% external targets.

· RWE will be eyed after Barron’s suggest the group could produce annual double digit total returns over the next two years.

· Allianz is in the news on reports it is preparing an offer for Swiss Life.

· Munich re states that it is expecting no major insurance damage claims form the heavy snowfall in Europe of the weekend.

· German press states that Continental and Schaeffler merging is not on the cards this year.

· SABMiller has fallen out of the auction for Mexican based FEMSA, which leaves Heineken NV as the front runner.

U.S. - Market News & Gossip

· Saudi Prince Alwaleed states today that the worst is over for Citigroup and sees positive results ahead in 2011 and states that he is in talks to invest in four foreign firms.

· Colgate Palmolive responds to the calls and states that the Venezuelan currency devaluation will not have any impact on its 2009 results or financial position.

· Heineken announces mid morning it has beaten off interest from rivals to buy Mexican based FEMSA in an all share deal worth €3.8bn.

· China has now officially topped the US as the world’s leading auto market, with 2009 passenger car sales up 52.9%, some 13.6m units, from the 10.7m sold in the US, the lowest level for 27 years.

· Barron’s suggests that shareholders in American Express should sell half of their positions in order to cash in on the strong gains posted from the lows last year.

· The paper also writes that Hughes Communications looks set for continued growth in the next 12 months and saw the current share price offering value.

· It also writes that shares in time Warner Cable is amongst the most compelling investments in the cable industry and could gain as much as 30%.

· HSBC is flat in UK trading today despite the FTSE being up some 50 points and despite Barron’s suggesting it could gain a further 20% citing its broad geographic and business mix.

Alan-Charles Bishop

Source: Man Financial Ltd.

Date: 11/01/10

Issued by GlobalCapital Financial Management Ltd, 120 The Strand, Gzira, GZR03 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 info@globalcapital.com.mt or Tel: 21 310088. 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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