Minnow makes up for majors

In an otherwise very drab week, the only listed closed ended Collective Investment Scheme, Santumas Shareholdings plc (STUM) was the week's only positive performer. STUM, which had not traded since July 6, made their accounts public during the week. These show dramatic results with pre-tax profits more than doubling, by as much as 104 per cent, and earnings per share soaring from 17c7 to 50c9 per share - a increase of 187 per cent.

STUM publishes its price on the 15th of every month, and this reflects the asset value at the end of the previous month. It came alive yesterday, rocketing ahead by 30 per cent to Lm1.30. This is still 9c3 below its published Net Asset Value price of Lm1.393. In truth this was on a turnover of 770 shares which is equivalent to 0.046 per cent of STUM's listed shares.

All other equities ended this four-day trading week unchanged, or in the red, as weekly turnover by value slumped to a year's low of Lm208,000 - virtually half the previous week's.

The "worst performer" tag was handed out jointly to HSBC Bank Malta plc (HSB) and Maltacom plc (MLC), both down an identical 2.84 per cent - even if MLC went XD.

HSB started the week at Lm2.10, a cent lower than the previous Friday's close and traded around this level till Wednesday. After Thursday's Independence Day holiday, it lost ground yesterday sliding from a Lm2.08 open to Lm2.05 close.

The number of shares changing hands during the week was 41,117. At the end of trading, the Lm2.05 closing price was supported by a bid for 4,980 shares, while the best offer for 7,505 shares stood at Lm2.10.

A company announcement released on Wednesday, informed stockbrokers that Louis Farrugia had resigned from the board of directors of HSBC eight days previously, i.e. with effect from September 12.

MLC, as expected, was out of favour following the release of the disappointing interim results. Yet, turnover for the week was a lame 1,091 shares (0.001 per cent of the listed, outstanding number of shares) and this was spread over two days: 511 shares at Lm1.725 on Monday and 580 shares 1c5 lower (equivalent to the net declared dividend) on Tuesday, thereby ending the day, and the week, at Lm1.71. This represents a 2.8 per cent loss from the previous Friday. At the end of the week, the price was poorly supported with the best bid for 500 shares at Lm1.651 and the best offers for 8,119 shares at Lm1.70.

Simonds Farsons Cisk plc was next in the line of losers, dropping 2.7 per cent. This, however, on a turnover of a mere 24 shares which at 72c, amounted to a market value of Lm17.

GlobalCapital plc also ended the week in negative territory - it only traded on Tuesday losing 0.5 per cent to Lm2 in the week's only trade for 440 shares.

The other equities which traded, that is, Bank of Valletta plc (BOV), Malta International Airport plc (MIA), Middlesea Insurance plc (MSI), International Hotels Investments plc (IHI) all ended the week unchanged: BOV traded in a very narrow range of Lm3.63 to Lm3.653 during the week on a total turnover of 18,607 shares. It was stable on Monday, opening at Lm3.649 and closing at Lm3.65. It lost ground in the first trades of Tuesday slipping to Lm3.63 to then recover to Lm3.65 by 10.55am - the time of its last trade.

Wednesday saw the first trade executed 30 minutes into the open at Lm3.65, with all the day's deals carried out between Lm3.65 and Lm3.651, while yesterday witnessed the week's quietest session when a mere 1,296 shares changed hands, all at Lm3.653. At the close of trade best bids totalled 1,350 shares at Lm3.652, while supply for 250 shares started at Lm3.695.

MIA only traded on Monday and Tuesday, static at Lm1.35. Activity on Monday was comparatively strong with 17,714 shares changing hands over three deals in contrast with Tuesday's poor 1,500 shares. MIA ended the week flat with the price well supported at yesterday's close of trading: best bids for 3,600 shares started at Lm1.35, while offers for 500 shares started at Lm1.40.

The only three deals for 800 shares struck in MSI were executed on Tuesday, with the price closing a minimal .04% higher at Lm2.495. By comparison, IHI, which ended the week unchanged at r0.95 was comparatively active with turnover of 56,774 shares.

Lombard Bank plc, Suncrest Hotels plc, Plaza Centres plc and Fimbank plc did not trade.

Activity in both the Corporate Bond Market and the Government Bond Market more than compensated for the snail-paced mood that hit equities this week. The corporate bond market was uncharacteristically busy with 76 deals taking place for a total turnover by value of Lm534,132 - more than 44 per cent of which took place on Monday. In Government Bonds turnover by value reached Lm915,531 spread over 21 deals, with yesterday accounting for 81 per cent of the week's trades.

The MSE index ended the week 1.5 per cent lower at 5,043.728, and full 24 per cent below its all-time high on March 28.

Report by Financial Planning Services Limited, tel. 2134 4244, fax. 2134 1202, email: info@bonellofinancial.com Financial Planning Services Limited is licensed by the MFSA to provide investment services, including stockbroking. The Directors or related parties, including the company, and their clients, are likely to have an interest in securities mentioned. This article is only meant to provide information and is not intended to give investment advice. The value of securities, and the currencies in which they are denominated, may go down as well as up.