IHI at intra-day and closing all-time high

Overkill. How else can one describe HSBC's massive blanket all-media marketing campaign to sell its 4.6% bond, maturing in 2017?

As mammoth amounts of liquidity, over-allotment and all, were siphoned out of the system, equity turnover by value on the Stock Exchange dwindled to Lm300,377.

This was the second lowest week of turnover by value for 2006/7 - the lowest was the four-day week last September, which included the Independence Day holiday.

The week's best performers were two small cap stocks - Middlesea Insurance plc (MSI) and International Hotels Investments plc (IHI). MSI climbed over the Lm2 threshold once again, locking in a 5.1% increase.

IHI enjoyed a prosperous week on news of the proposed one for six bonus share issue. It rose from session to session, peaking at a record closing high of €1.07 on Thursday and an intra-day high of €1.12 on Friday. Profit taking then saw the price slip back to €1.07 close for a 4.9% gain on the week.

On the other hand, large caps were lackadaisical. After last week's encouraging gains, activity in the banks was subdued, with both major banks ending the week in negative territory - HSBC Bank Malta plc (HSB) was down 1.4% to Lm2.11, and Bank of Valletta plc (BOV) slipped 0.8% to Lm3.67.

Maltacom plc (MLC) slipped to a 2006/7 low of Lm1.425, its lowest since the September 22, 2005, close of Lm1.42, but then managed to retrace its steps to end the week almost flat at Lm1.45.

Malta International Airport plc (MIA) did not trade at all last week - something that had not occurred since the week starting June 8, 2004.

BOV started the week at Lm3.699, rising to the previous week's close of Lm3.70 on very low turnover.

The meagre trade over the next three days - 769 shares on Tuesday, 1,615 shares on Wednesday and 340 shares on Thursday - barely set a ripple in the price, as all deals were struck in a tight range of Lm3.70-Lm3.698.

Friday was comparatively busy with activity of 3,346 shares as the price fell to Lm3.67 to end the week 0.8% lower. Total turnover for the week amounted to just 9,600 shares for a market value of Lm35,430.

At the close of trade best bids totalled 1,529 shares at Lm3.67, while supply for 400 shares started at Lm3.70.

HSB, following last week's fireworks, opened a cent lower at Lm2.13 and, cent by cent, sank lower for a Monday close of Lm2.085. Tuesday saw the bulk of trading take place at Lm2.085, but in the final deal picking back up to Lm2.10 - the level at which all of Wednesday's trade was negotiated.

On Thursday only 4,605 shares traded in a two-minute span, just before the closing bell. Nonetheless, the price rose to Lm2.125. Friday was by far the slowest session with only 2,000 shares changing hands, as the price eased to Lm2.11 for a week-on-week loss of 1.4%.

Turnover was an uncharacteristically low 68,128 shares for a market value of Lm143,381. Nonetheless, this was still 48% of the week's total equity turnover by value. At the end of trading, the best bid was for 1,500 shares at Lm2.106 and the best offer for 3,667 shares stood at Lm2.11.

MLC continued to languish, falling to a new 2006/2007 low of Lm1.425. It opened on Monday 2c1 higher at Lm1.471, but quickly fell back to Lm1.461. The price continued to ease under selling pressure, closing at Lm1.451.

Tuesday and Wednesday saw all trade carried out at Lm1.45, as were Thursday's first two deals. However, the third and final deal for the day dragged MLC to a low of Lm1.425.

Friday brought some respite as MLC bounced back to Lm1.45 to close the week almost unchanged, only 0.3% lower. The week's activity totalled 31,104 shares for a value of Lm45,147.

At the end of the session, the best bid was for 6,000 shares at Lm1.43 and the best offer for 1,848 shares at Lm1.49.

MIA did not trade at all. As selling pressure at the Lm1.40 mark continued to build up, sellers lowered their price marginally. Buyers, however ,were firmly stuck at Lm1.385. At the close of Friday's session, best bids were for 2,900 shares at Lm1.385, with offers for 5,000 shares started at Lm1.399.

IHI was agog with activity with a comparatively high turnover of 118,056 shares for the week. Its share price climbed from one high to the next in the early part of the week.

It opened Monday at €1.03, rising to €1.05. On Tuesday it nudged even higher to €1.06, advancing to a record high of €1.07 on Wednesday.

It did not trade on Thursday but burst into action on Friday, opening at €1.092 and peaking at an intra-day all-time high of €1.12.

Selling activity late in the day, however, pulled the price down to €1.07. Despite this, IHI ended the week 4.9% ahead.

On Monday IHI announced that an EGM will be held on January 31, where the following resolutions will be presented:

1) To increase the authorised share capital and to redesignate it into two classes of shares;

2) To authorise the increase in the issued share capital by the allocation of new shares, and to authorise the directors to issue and allot the new shares without first offering them to the existing shareholders in proportion to their current holdings;

3) To capitalise an amount not exceeding €5 million from revaluation reserves and issue such number of fully paid up bonus shares of a nominal value of €1 each. The bonus shares will be issued and allotted in a ratio of one bonus share for every six ordinary shares, in issue as at June 30, 2006, less any shares held by Corinthia Palace Hotel Company Ltd, to members holding these shares as at the effective date, i.e. the working day subsequent to closing of the transaction with Istithmar Hotels FZE; to apply such amount of IHI's revaluation reserves as at the December 31, 2006 (net of the capitalisation), to offset accumulated losses up to the financial year ended December 31, 2006; to authorise the directors to undertake a share buyback programme up to an amount not exceeding the number of bonus shares issued pursuant to the capitalisation; and, finally, to authorise the directors to resell the shares so acquired from members to whom bonus shares were issued in terms of this resolution limited to the number of bonus shares issued to each member;

4) To effect amendments to the memorandum and articles of association of the company; and

5) To increase the amount of fees and remuneration to the directors of the company.

MSI jumped 10c to Lm2.05 in one deal for 1,500 shares on Tuesday. It only traded again on Wednesday, also at the same level, marking a 5.1% gain on the week.

All other small caps were static: FIMBank plc was stable at $1.73 on low turnover of only 1,500 shares on Monday; Medserv plc only traded on Wednesday, stable at Lm1.36; Simonds Farsons Cisk plc was only active on Thursday, trading unchanged at 80c; and Plaza Centres plc advanced minimally to 70c5 in the week's only deal for 500 shares on Wednesday.

On Wednesday, Suncrest Hotels plc announced that the board of directors was scheduled to meet the following day to approve the company's financial statements and its preliminary profit statement for the year ended October 31, 2006.

The results were published on Friday and showed a 14% decrease in revenue for the year to Lm2,276,000. The loss before tax increased by 6% from Lm197,000 to Lm209,000. The negative earnings per shares worsened from -13c to -14c (7.7%).

On the Alternative Companies List, Datatrak plc only traded on Friday, static at 25c.

The MSE Index closed 0.43% down at 5,069.312.

In the Government bond market 31 deals were completed for a turnover by value of Lm224,228. In the corporate bond market turnover by value reached Lm253,165, spread over 25 deals. HSBC's 4.6% new bond issue opened on Thursday and closed within the hour, due to oversubscription.

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