How low can we go?

Activity ground to a near halt during this four-day trading week, thanks to Thursday's Independence Day holiday, to claim the lowest equity turnover by value of the year - an embarrassing Lm208,000. This beat the previous week's then record low of Lm393,342 by almost half - 47% for the purists - making it a veritable nadir for this year's trading.

As can be expected, trading was as exciting as barbecuing steaks over candles, with prices flat or down. The numbers for the week are an accurate reflection of the apathetic mood that swamped the Exchange: of the 13 listed equities, five did not trade and four closed unchanged, with the remaining four closing in negative territory.

HSBC Bank Malta plc (HSB) and Maltacom plc (MLC) ended with an identical loss of 2.84%, Simonds Farsons Cisk plc (SFC) shed 2.7% on a risible turnover of 24 shares - for the week! - and GlobalCapital plc dropped 0.5%.

The one positive performer was the only listed closed ended Collective Investment Scheme, Santumas Shareholdings plc (STUM), and, at least in percentage terms, this minnow made up for the malaise with a spectacular 30% price explosion to Lm1.30. The MSE index ended the week 1.5% lower at 5,043.728.

Bank of Valletta plc (BOV) was stable on Monday, trading at Lm3.649 and Lm3.65, closing at the latter price. On Tuesday, it lost ground in the first trades, slipping to Lm3.63 but recovered to Lm3.65 by 10.55 a.m., with no further trades taking place for the day.

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. Friday was the quietest session of the week with a mere 1,296 shares changing hands, all at Lm3.653, for BOV to end the week an inconsequential 0.08% higher.

At the close of trade best bids totalled 1,350 shares at Lm3.652, with supply for 250 shares starting at Lm3.695.

HSB opened the week 1c lower at Lm2.10 and traded consistently at this price, as it did on Tuesday, barring the opening two deals at Lm2.099. On Wednesday - the week's quietest session for this equity, where only 2,760 shares changed hands - it traded at Lm2.095 recovering to Lm2.10 for the day's final two trades.

Friday saw HSB's price tumble from a Lm2.08 open to a Lm2.05 close, to end the week 2.84% lower. At the end of trading, this closing price was supported by a bid for 4,980 shares. The best offer for 7,505 shares stood at Lm2.10.

In a company announcement on Wednesday, stockbrokers were informed 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, lost ground in the wake of the release of its lacklustre interim results. Volume for the week was a lame 1,091 shares (0.001% of the listed outstanding number of shares) spread over two days: 511 shares at Lm1.725 on Monday and 580 shares, 1c5 lower (equivalent to the net declared interim dividend), on Tuesday, ending the day, and the week, at Lm1.71.

This represents a 2.8% 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.

Malta International Airport plc (MIA) only traded on Monday and Tuesday, static at Lm1.35. Activity on Monday was comparatively strong with 17,714 shares changing hands in three deals in contrast with Tuesday's poor 1,500 shares.

MIA ended the week flat with the price well supported at the close of Friday's trading: best bids for 3,600 shares started at Lm1.35, and offers for 500 shares started at Lm1.40.

Small cap stocks only made a halfhearted appearance: Lombard Bank plc, Suncrest Hotels plc, Plaza Centres plc and FIMBank plc did not trade, while most of the stocks that did trade only put in a token appearance. Simonds Farsons Cisk plc stood out for dropping 2.7% to 72c, on a weekly turnover of 24 shares for a market value of... Lm17!

Activity in Middlesea Insurance plc was restricted to three deals for 800 shares on Tuesday. The price closed a minimal 0.04% higher at Lm2.495. GlobalCapital plc also only traded on Tuesday losing 0.5% to Lm2 in the week's only trade for 440 shares. By comparison, International Hotels Investments plc, which ended the week unchanged at €0.95 was comparatively active with a turnover of 56,774 shares.

STUM, which had not traded since July 6, made their accounts public last week. These show dramatic results with pre-tax profits more than doubling, by as much as 104%, and earnings per share soaring from 17c7 to 50c9 per share - a increase of 187%.

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 on Friday, rocketing ahead by 30% to Lm1.30. This is still 9c3 below its published Net Asset Value price of Lm1.393.

In the corporate and Government bond markets activity more than compensated for the snail-paced mood that hit equities last 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% of which took place on Monday.

In Government bonds turnover by value reached Lm915,531, spread over 21 deals, with Friday accounting for 81% of the week's trades.

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