Lombard, down 9%, leads the losers

It could have been a much happier start to the New Year for trading on the Malta Stock Exchange - or at least to celebrate its 15th anniversary next Monday. The drop in the MSE index, in the short 3-day trading week, carried on remorselessly as it has done for the last nine months. At yesterday's close it touched a fresh 2006/7 low at 4757.34, down 2.4per cent on the week and 28.4per cent from its all time high.

Lombard Bank plc (LOM) led the rout with a walloping 8.8 per cent crash, followed by Maltacom (MLC) and Bank of Valletta plc (BOV) each with a 2.7 per cent drop, and HSBC Bank Malta plc (HSB) shedding 2.6 per cent. Malta International Airport plc (MIA) was the only equity to advance gaining a mere 0.7per cent - which however took the share price to a two-month high.

LOM, following its virtuoso performance in the final weeks of 2006, scuttled off stage diving 26c lower to Lm5.50 on Wednesday, and plunging a further 25c yesterday for a Lm5.25 close. Volume however was very thin with the week's turnover totaling only 1150 shares for a market value of Lm6,163. On Thursday LOM announced that Mr Stefano Loffredi has been appointed to the Board of Directors, effective January 4, 2007.

BOV's end of year sudden cosmetic upsurge to Lm3.70, faded and flaked to a Lm3.65 open for the 2007 trading year on Wednesday to then fall further to Lm3.60 by the close. It stayed at Lm3.60 on Thursday but fell as low at Lm3.58 during yesterday's slow session, recovering to Lm3.60 in the final deal to end the week 2.7per cent lower. Volume for the week amounted to just 11,743 shares for a turnover of Lm42,276.

At the close of trade best bids totaled 554 shares at Lm3.56, while supply for 1250 shares started at Lm3.599

MLC trading was very slack with only 2,875 shares (an average of less than 1,000 shares per day) traded, for a value of Lm4,267. On Wednesday one deal was executed at Lm1.49 with another one deal on Thursday at Lm1.485. Yesterday saw a microcosmical turnover of just 545 shares; yet the final deal for 45 shares meant MLC's 100 million plus other shares, would all be valued at Lm1.45 - a price drop of 2.7per cent on the week.

At the end of the session, the best bid was for 3955 shares at Lm1.45 and the best offers for 2000 shares at Lm1.485.

Investors bottom fishing for a bargain on HSB's price, saw it plumb new depths when it closed on Thursday at Lm1.84. On Wednesday it opened at the Lm1.90 it had closed 2006 at, but closed the day at Lm1.86. Following Thursday's further 2c drop, yesterday saw a break in the clouds with the share price actually closing 1c higher at Lm1.85 on substantial turnover. HSB however ended the week 2.6 per cent down on turnover of 195,029 shares for a market value of Lm361,183 - a full 82.5 per cent of the week's total equity turnover by value.

At the end of trading, the best bid was for 425 shares at Lm1.846 while the best offer for 1000 shares stood at Lm1.855.

Malta International Airport plc picked up from where it had left off last year - at Lm1.37, advancing to Lm1.374 by Wednesday's close. Thursday saw a one mil increase to Lm1.375, to which a further 5 mils were added yesterday for the highest close in the last two months at Lm1.38. Turnover for the week was 9910 shares for value of Lm13,623. At the close of trading, best bids were for 2000 shares at Lm1.31 while offers for 1800 shares started at Lm1.36.

Other small cap stocks fluctuated minimally, if at all. Middlesea Insurance plc (MSI) opened 2007 unchanged at Lm1.98, but closed on Wednesday at Lm1.95 - the same price it closed at yesterday, for a 1.5 per cent drop on the week.

On Thursday MSI announced Mr Frank Xerri de Caro's resignation from the Board, effective January 1, 2007, and its subscription for 89.98 per cent of the issued share capital in Progress Assicurazioni Spa. These shares were allotted on December 29, 2006 to existing shareholders on a pro rata basis; thereby MSI retained its shareholding in the unlisted Italian company at the 89.98 per cent level previously held.

Fimbank plc, Plaza Centres plc, Simonds Farsons Cisk and Medserv all traded unchanged at $1.73, 70c, 80c and Lm1.36 respectively. International Hotel Investments plc shed 0.5 per cent in negligible trade of just 1241 shares for a market value of Lm530. Yesterday, Suncrest Hotels plc announced that the Listing Authority authorised the lifting of the suspension of trading on the 8.25 poer cent Suncrest Bonds 2005-07 with immediate effect.

In Malta Government Stocks a total of 24 deals were completed for a value of Lm265,281.16. Only 6 deals were struck in Corporate Bonds for a total value of just Lm5,170.

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 (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.