HSBC just 3c3 from 2006 low

The market capitalisation of HSBC Bank Malta plc (HSB), which closed yesterday at Lm1.97 - its lowest level since its Lm3.00 all-time high exactly eight months ago - stands at Lm575,000,000. This is a full Lm25 million more than the combined market capitalisation of Bank of Valletta plc (BOV) and Maltacom plc (MLC), which are, individually, the second and third largest. This explains why, during the week, the MSE index fell to its lowest level of 4,873.487 since its March 28 all-time high, ending the week minimally higher at 4,874.159.

HSB's opened on Monday at Lm1.99, slipped to Lm1.975 and, on Tuesday, dipped to a fresh post-bonus low of Lm1.97. It stayed there for most of Thursday's trading and all of yesterday's. This translated into a one per cent drop on the week. Trading in HSB accounted for 34.5 per cent of the week's total equity turnover by value, with 125,340 shares traded for a market value of Lm247,279. At the end of trading, the best bid was for 1500 shares at Lm1.961, while the best offers for 1,500 shares stood at Lm1.98.

BOV kicked off on Monday at Lm3.60 but slipped to Lm3.59 by the close. It dropped a cent on Tuesday to Lm3.58, but recovered to a Lm3.59 close. After Wednesday's Republic Day holiday, Thursday's trading was transacted in the same price range, again closing at Lm3.59. Yesterday's low turnover session saw all deals negotiated at Lm3.59, for BOV to close the week 1c lower. The week's volume totalled 59,799 shares for a market turnover of Lm214,597. At the end of trading best bids totalled 1050 shares at Lm3.58,5, while supply for 2,000 shares started at Lm3.59.

MLC was stable at Lm1.50 on Monday and on Tuesday, with the exception of a final 1,000-share deal at Lm1.49,5. Post the mid-week break, the share price opened at Lm1.49,5, returned to Lm1.50, and then closed yesterday 5 mils lower - again at Lm1.49,5. The week's trading consisted of 32,740 shares for a value of Lm49,005. At the end of the session, the best bid was for 1,926 shares at Lm1.49 and the best offer for 500 shares at Lm1.49,5.

Malta International Airport plc (MIA) flew lower on Monday at the Lm1.34 and Lm1.33,5 level, but climbed back to Lm1.34 by the end of Tuesday's session. It then only traded yesterday at Lm1.33,5 to close the week 1.1 per cent down. Total turnover for the week was only 11,998 shares for a market value of Lm16,000. At the end of the session, best bids were for 11,350 shares at Lm1.30, while offers for 4,300 shares started at Lm1.33,5.

The only three gainers this week were: GlobalCapital plc which on Thursday started 6c higher at Lm2.06 before gaining a further 4c to close at Lm2.10. This made it the week's best performer, with a five per cent increase - on a turnover of just 11,030 shares.

Simonds Farsons Cisk plc only traded yesterday with a total turnover of 5,000 shares. It opened at 79c and closed at 81c9, its best level since the 83c close of April 25. Medserv plc was another one day appearance when yesterday 9000 shares changed hands at Lm1.35, a gain of 4c - three per cent on the week. The other "one day a week" equity was Middlesea Insurance plc which, contrary to the only three gainers this week, recorded the biggest drop, shedding 4.8 per cent (10c) to close the week at Lm2.00.

Lombard Bank plc's single trade on Monday was a 50-share deal in which it lost 10c, but the same margin was regained by Tuesday's close when 7,879 shares were transacted at Lm5.10. It did not trade again and closed the week unchanged. International Hotel Investments plc fell to €0.995 on Monday but regained the €1.00 on Tuesday which it maintained till yesterday's close.

Fimbank plc traded at a post-bonus issue low of $1.69 on Monday, but was back at $1.70 on Tuesday, where it closed yesterday to end the week flat.

Datatrak plc (DTK) traded at 26c on Tuesday and at a 2006 low of 25c by Thursday's close, and for yesterday's single deal - 3.8 per cent lower on the week.

In Malta Government Stocks turnover by value halved from the previous week to Lm427,610 with 41 deals completed. There were only eight deals in Corporate Bonds for a total turnover by value of just Lm17,713. The new 6.7 per cent AX Investments Ltd 2014/16 Bond was oversubscribed within two hours of its launch last Tuesday.

Report by Financial Planning Services Limited, tel. 2134 4244, fax. 2134 1202, e-mail: info@bonellofinancial.com

Financial Planning Services Limited is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). 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.