The positive performance of the Malta Stock Exchange during 2007, both in terms of new listings as well as in turnover values, was reflected in the financial results for the year which showed a pre-tax profit of just under Lm569,000 (e1.3 million), an increase of some Lm76,000 (e177,000) or 15 per cent on the previous year, its annual report says.

The profit figures, however, are not strictly comparable with those of last year since, with the corporate restructuring of the Malta Stock Exchange coming into effect on 1 November, 2007, the financial year of the Malta Stock Exchange for 2007 covered only the first 10 months of the year, that is, from 1 January to 31 October.

2007 turned out to be quite a successful year. Apart from 30 issues of Government Stocks and Treasury Bills – which were admitted to the market for the first time during 2007 – another seven new corporate bonds and two equity issues were admitted to the recognised lists during the 10 months under review. The listing of Treasury Bills was significant in that, not only were these securities traded on the Exchange for the first time this year, but their introduction to the market also brought about a major development in the Exchange’s security settlement system as they became the first securities on the market to be traded, cleared and settled on the same day.

One of the equity issues that came to the market during 2007, also happened to be the first foreign registered company to be listed locally. Another similarly set up company was admitted to the recognised list at the very start of 2008. Excluding funds raised on the primary market through the issue of Treasury Bills, a total of Lm347 million (e808 million) were raised on this market during 2007. Widening the range of financial instruments available to investors, as well as deepening the liquidity of financial instruments available in the secondary market, will remain prime strategic goals for the Exchange in the coming year.

In the market, turnover reached a total of just over Lm196 million (e457 million), during 2007, an increase of around 22 per cent when compared to the previous year’s performance. At the same time, total market capitalisation climbed to Lm3.3 billion (e7.7 billion), up from Lm2.9 billion (e6.8 billion) the previous year.

A major event which left its mark on the operations of the Exchange during 2007 was the preparatory work needed to set up the proper operational basis for the euro-changeover process that took place on 1 January 2008. The Malta Stock Exchange was directly involved, together with other institutions in the financial sector, in the Financial Services Sub-Committee under the National Euro Changeover Committee, NECC.

One of the most important priority issues for the Exchange is that of ensuring compliance with its international obligations. During the course of 2007, the Exchange took the necessary steps to comply with its commitments vis-à-vis the voluntary European Code of Conduct on Clearing and Settlement it had subscribed to in November 2006. The Exchange also dedicated considerable resources, both human and financial, to ensure compliance with the Transparency Directive and the Markets in Financial Instruments Directive (MiFID) which were both transposed into Maltese law during the past year.