Malta Stock Exchange performance - 2000
According to Malta
Stock Exchange Chairman, Alfred Mallia, last year marked "the coming
of age of the institution." Indeed, last year was rather successful.
The Exchanges turnover of Lm150 million was up 28 per cent over
that of the previous year, after the extraordinary sale of the governments
Mid-Med shares, and was mainly comprised of trading in the equities
market. Meanwhile, the number of Collective Investment Schemes listed
on the Exchange surpassed the 300 mark. Following are highlights from
the Exchanges report for 2000.
Over 2000, market turnover on the Malta Stock Exchange reached a total
of Lm149 million, which was represented by a turnover of Lm81.2 million
in equities; Lm4.5 million turnover in corporate bonds and Lm63 million
in Malta Government Stocks.
Although with a turnover surpassing Lm190 million, the global turnover
value for 1999 was somewhat higher than that recorded for 2000, the
1999 figure included Lm74 million which represented the turnover on
the sale of the government's shareholding in Mid-Med Bank plc to HSBC
Bank Malta plc in June 1999.
After allowing for this extraordinary factor, business on the Exchange
increased by Lm32.5 million during 2000, an increase of 28% on the previous
During the year under review, the market was again dominated by high
levels of business in the equity sector, which far exceeded the business
transacted in the Government Stock market.
The number of deals effected on the market reached a total of 17,057,
a minimum increase of 218 over the previous year's figures. Deals concluded
in equities remained practically the same (from 13,201 to 13,206), while
a slight decrease in Government Stock deals ( 3,010 to 2,866) was made
up for by a significant increase in the number of deals concluded in
corporate bonds, which registered an increase of over 50%, from 628
in 1999 to 985 in 2000, this increase being largely the result of the
increase in listed corporate bonds.
The value of shares traded on both the Official List and the Alternative
Companies List registered an increase of over 27% during 2000 when compared
to 1999 figures (excluding the Mid-Med Bank plc transaction), reaching
a turnover figure of Lm81.2. This increase in the turnover value for
equities was not reflected in the number of shares traded, which registered
a decline of 15%, from almost 31 million in 1999 down to 26.2 million
in 2000. These divergent trends can be explained by higher equity prices
during 2000, which pushed up equity turnover figures for the year.
In the equity market trading was heaviest in Maltacom plc shares, turnover
in which accounted for 37% of all business transacted in the equity
Market turnover in the Government Stock market reached a value of just
over Lm63 million in 2000, an increase of 24% compared to Lm5l million
in 1999. This increase was not reflected in the number of deals concluded
which decreased slightly from 3,010 in 1999 to 2,866 during the year
Trading in the Government Stock market was dominated by business in
the longer term stocks, mainly in the 7.8% MGS 2018, turnover in which
accounted for almost 27% of all business transacted. Business in this
market was also brisk in medium term stocks, mainly in the 7.8% MGS
2012 and in the 7.8% MGS 2013. The largest number of deals in any one
stock throughout the year were concluded in the longest term bond, the
6.6% MGS 2019.
During 2000, there was a noticeable increase in corporate bond business,
with the total value traded exceeding Lm4.5 million, over twice the
turnover value registered during 1999, due to the large increase in
the number of securities listed in this sector. This increase was also
reflected in the number of deals which was similarly higher, rising
from 628 to 985.
Turnover in the 6.15% Bank of Valletta plc Bond 2003/4, accounted for
almost 50% of the business transacted in the Corporate Bond market.
The MSE Ordinary Share
The Malta Stock Exchange Ordinary Share Index is an index of the price
movements of ordinary shares listed on the Official List of the Malta
By definition, therefore, preference shares and those shares listed
on the Alternative Companies List are excluded from the computation
of the Index. The Index is a weighted index and the weightings correspond
to the overall capitalisation of each issue in relation to the capitalisation
of the ordinary shares in the Market. The prices taken in the computation
are the trade weighted average for each share recorded on a daily basis.
The base date was set at the end of the session held on 27 December
1995 and the base index was set at 1,000.
Equity prices during 2000 remained fairly steady throughout the year.
This was reflected in the value of the Malta Stock Exchange Ordinary
Share Index, which after opening the year at 3278.48 and peaking at
3896.90 on 14 February 2000, ended the year at a value of 3375.49, an
overall annual increase of 97.23 points, or three per cent. Index values,
in fact, remained fairly steady throughout the year, dipping slightly
towards the end of the year, following the dip in equity prices as the
year drew to its conclusion.
The market capitalisation of securities listed on the Malta Stock Exchange
(excluding Collective Investment Schemes) reached a total of over Lm1,730
million at the end of 2000, an increase of Lm34 million, or 8%, over
the end of 1999 value. Market capitali-sation of equities reached a
value of Lm882 million, an increase of Lm92 million over last year's
A large increase was also registered in the market capitalisation for
corporate bonds - from Lm41 million at the end of 1999 up 154% to Lm106
million at the end of the year under review. Market capitalisation of
Government Stocks decreased slightly by Lm22 million to end the year
at a value of Lm742 million.
At the end of the year there were also 26 local Collective Investment
Schemes listed on the Malta Stock Exchange (apart from almost 200 foreign
investment schemes) with a market capitalisation value of over Lm330
2000 was another year that witnessed a considerable amount of new listings
in all sectors of the market, including the first listing on the Alternative
Three new equity issues were admitted to listing during the year under
review, namely 40,000,000 Ordinary Shares of Lm1 each of International
Hotel Investments plc and 9,414,000 Ordinary Shares of 20c each of Plaza
Centres plc, were admitted to listing on the Official List of the Malta
Meanwhile, Datatrak Holdings plc listed 15,949,500 Ordinary Shares of
10c each on the Alternative Companies List, the first company to list
its securities on the alternative listing board which was introduced
Subsequent to a Rights Issue, an additional 763,833 Lombard Bank (Malta)
plc Ordinary Shares of 50c Nominal were admitted to the Official List
in April 2000.
During the year under review, a further six medium term Government Stocks
were admitted to listing, with a total Nominal value issued of over
Lm87 million. These were the 5.9% MGS 2009 (III); 6.6% MGS 2014; 5.6%
2015 and the 7% MGS 2010 (III), the latter being allocated entirely
to the Foundation for Church Schools.
Throughout the year, there were also a further six new Corporate Bonds
admitted to listing on the Official List. Among these were the first
foreign currency denominated bond - the 8% Bank of Valletta plc Bond
2010, denominated and traded in US Dollars, with a Nominal value issued
The first privatisation bonds - 100,000 Malta Government Privatisation
Bonds of a Nominal value of Lm100 each were admitted to listing in December
2000 while International Hotel Investment plc listed Lm5,000,000 5%
Convertible bonds 2010 at the same time it listed its equity.
Other Corporate Bonds listed during the year were Lm10,000,000 Eden
Finance plc Bonds 2010, Lm4,000,000 6.75% United Finance plc Bonds 2008
and a further bond issued by Bank of Valletta plc Lm20,000,000
6.15% Bonds 2010.
The year 2000 was a hugely successful year in respect to the listing
of Collective Investment Schemes. The following local and overseas schemes
were granted a primary or secondary listing during the year and admitted
to the Official List of the Malta Stock Exchange:
Global Funds SICAV plc - 1 sub-fund
Wignacourt Fund SICAV plc - 1 sub-fund
Amalgamated Investments SICAV plc - 1 sub-fund
Melita International Funds SICAV plc -3 sub-funds
La Valette Funds SICAV plc -5 sub-funds
Royal + Sun Alliance Global Investment Portfolio SICAV plc -
Lloyds TSB Money Market Fund Ltd - 12 sub-funds
Lloyds TSB Offshore Fund Ltd -9 sub-funds
Lloyds TSB Offshore Gilt Fund Ltd
Barclays International Fund SICAV - 13 sub-funds
Barclays International Funds (Luxembourg) -5 sub-funds
Barclays Euro Funds -6 sub-funds
UBS (Luxembourg) Bond Fund -13 sub-funds
UBS (Luxembourg) Strategy Fund - 15 sub-funds
Putnam World Trust IT Fund -13 sub-funds
Fidelity Funds SICAV - 7 sub-funds
HSBC International Capital Secured Growth Funds plc -6 sub-funds
At the end of the year there were around 300 local and overseas Collective
Investment Schemes listed on the Malta Stock Exchange.
Following the winding up of the Lazard Asia Pacific Fund, a sub-fund
of Lazard Global Equity Fund, it was delisted from the Official List
with effect from 29 February 2000.
Suspension of Listing
As a result of new developments within the Fund, two share classes of
Fidelity Funds SICAV - the Selection International Fund and the Selection
Europe Fund - were suspended from listing on 9 December 1999. The listing
of these two sub-funds was subsequently cancelled with effect from 4
During the year 12 Government Stock issues with a total Nominal value
of Lm86.5 million were redeemed.