Market awaits HSBC results

Lethargy best describes the mood on the exchange last week, when trading moved at the pace of a lullaby. It was the usual stalwarts, Bank of Valletta (BOV) and HSBC Bank Malta (HSB) which kept activity moderately buoyant, although prices remained flat.

Together, the two banks accounted for more than 76% of the week's equity turnover by value. The other large cap stocks went through the week at an even more sedate pace: Maltacom (MLC) only traded on two days, and Malta International Airports (MIA) traded on three.

Both gave up some of their recent gains. Small cap stocks had a nondescript week. Equity turnover by value, though a respectable Lm834,000, was boosted by an unusually active put through market, which accounted for 28% of the total. The MSE index closed the week at 5,630.543, an insignificant 0.14% lower.

BOV picked up where it left off the previous Friday, opening and closing on Monday at Lm4.049. It opened at this level on Tuesday but after not trading for practically a whole hour, gave up 4c9 to tumble to Lm4 during the quietest session of the week when only 3,180 shares changed hands.

The Lm4 tag stuck for all of Wednesday, and most of Thursday, although it slipped temporarily for two deals mid-session - trading at Lm3.97 and Lm3.96 - before regaining its footing at Lm4. Friday looked set to be more of the same, with the price stuck at Lm4.

However, the final two deals were effected at Lm4.05, to close the week unchanged. At the end of the session the best bid was for 130 shares at Lm4.05, while supply for 2,000 shares started at Lm4.09.

HSB was firmly anchored at Lm2.35 for the whole week. The only slight variance came early on Monday with the opening deals effected at Lm2.36. The bulk of the remaining deals during the busy session, with over 100,000 shares traded, were all at Lm2.35, give a mil or two on either side. This price was set in stone for the rest of the week, as the market seems to be waiting with bated breath for next Thursday's release of the bank's half-yearly results to June 30, 2006. HSB ended the week flat with the best bid for 650 shares at Lm2.31 and the best offer for 150 shares at, you guessed it, Lm2.35. MLC barely made an appearance last week, trading on two days - Tuesday and Friday - in anaemic turnover. Thursday's 1,000-share deal was effected during the "put-through" session and not in open trade.

On Tuesday MLC dipped to Lm1.97, but gradually recovered to a Lm1.995 close in thin trade. Friday's four trades were carried out at Lm1.984 and at Lm1.985 to end the week 1c4 lower.

At the end of the week the best bids were for 1,000 shares at Lm1.90 and the best offers started at 3,000 shares at Lm1.984.

On Tuesday, Maltacom announced that Patricia Cook Geery would relinquish her post of director, with effect from last Monday. Dr Ahmed Mahjoub has been appointed director. He is currently the CEO of Tunisia Telecom and previously was a member of the Government of Tunisia and held the post of Secretary for Informatics and Internet. MIA was active in the early part of the week, trading consistently at Lm1.475 on Monday and Tuesday. It did not trade on Wednesday or Thursday, resuming activity on Friday. MIA opened down at Lm1.445, inching up to Lm1.46 by the end of session to end the week 1.7% lower. At the end of trading, bids for 200 shares started at Lm1.405, while supply for 3,000 shares started at Lm1.475.

Small cap stocks were even more uneventful than their large cap counterparts. The best performer was Plaza Centres (PZC), consolidating the previous week's gains, to advance 0.7% to 65c. International Hotels Investments (IHI) made negligible progress up 0.4% to €0.905 as 31,242 shares changed hands.

Lombard Bank (LOM) started the week stable at Lm5.65, tumbled 10c mid-week, climbing back to Lm5.60 and then to Lm5.64 for the week's final deal, a cent lower on the previous week.

Middlesea Insurance (MSI) opened the week unchanged at Lm2.59, advanced to Lm2.60 early on Tuesday's session, falling to Lm2.58 by the close. It did not trade on Wednesday or Thursday but shed another cent on Friday, to end the week 0.8% lower.

Simonds Farsons Cisk (SFC) only traded on Thursday with both deals effected at 78c, 2.5% lower than the last trade on July 6. Suncrest Hotels, GlobalCapital and Fimbank did not trade, as did Datatrak on the Alternative Companies List.

On Monday GlobalCapital announced that the board will meet on September 8 to consider and approve the interim results as at June 30 and to consider the declaration of an interim dividend.

The Corporate Bond market was more active than in the previous week, with 44 deals taking place for a total turnover by value of Lm102,696. The Government Bond Market was also busier as turnover was over the Lm1 million mark at Lm1,394,735, spread over 108 deals.

Financial Planning Services Limited is licensed by the MFSA to provide investment services, including stockbroking. The company is involved in acting as sponsoring stockbroker and corporate stockbroker. The directors or related parties, including the company, and their clients, are likely to have an interest in securities mentioned.

Report by Financial Planning Services Ltd., tel: 2134-4244, fax 2134-1202, e-mail matthew@bonellofinancial.com, elaine@bonellofinancial.com