A positive week for the local stock exchange

It was a positive week for the local bourse as six of the 10 active equities registered increases in their share prices. The Malta Stock Exchange (MSE) index gained one per cent to close 46 points higher at the level of 4,855.38.

The banking sector, in particular HSBC Bank Malta (HSBC), Bank of Valletta (BOV) and Lombard Bank together with GlobalCapital accounted for 89 per cent of the value traded on the equity market. A total of 122 transactions were recorded in equities during the week for a total turnover of Lm357,107, while 114 deals were executed in bonds and Malta Government Stocks (MGSs) for a total value over Lm10.37 million.

The top equity performer of the week was International Hotel Investments which moved four per cent higher on a weekly basis and closed at €1.04. This gain was attained on a low volume with 7,500 shares changing hands across five transactions in the last two sessions of the week.

Malta International Airport added 2.7 per cent also on thin activity as less than 5,000 shares were transacted over four deals. The equity closed 3c5 higher at the level of Lm1.35.

HSBC was the most actively traded equity having 46,467 shares transacted across 37 deals to edge just 0.05 per cent or 0c1 higher and close at Lm1.90,1. This was the highest price traded at in the equity during the week, while the lowest registered was Lm1.89. BOV registered 34 trades in all and had 17,784 shares change hands to see its share price gain 1.6 per cent or 5c8 and close at Lm3.60,9. Moreover, Lombard closed the week at the Lm5 level after having added 6c or 1.2 per cent on a volume of 18,818 shares spread across 13 transactions.

The other equity to trade and close in positive territory was GlobalCapital. This was the third consecutive positive week for the equity which climbed a further 5c or 2.3 per cent to close at the Lm2.20 level, the highest of the week. The lowest price traded on the other hand was that of Lm2.13. The total number of shares traded amounted to 33,185, these being transacted across eight deals.

The negative performers of the week were Maltacom, Grand Harbour Marina (GHM) and Simonds Farsons Cisk with the first two losing less than half a percentage point on a week-on-week basis. Maltacom shed 0c5 or 0.3 per cent to close at Lm1.44,5 as 11,000 shares changed hands across eight transactions. GHM had a single deal of 1,000 shares executed at the price of 75c6, this representing a 0c3 or 0.4 per cent loss.

In addition, Simonds Farsons Cisk's share price declined by one per cent on a volume of 11,444 shares traded across eight deals. The equity thus closed the week at 98c.

The only equity to trade and close unchanged from the previous week was Middlesea Insurance. In fact, just above 1,500 shares were traded across five deals at the stable price of Lm1.75. On Monday, the company announced that, during its annual general meeting held on June 28, the shareholders approved the payment of a dividend of 4c5 per ordinary share, that amounted to Lm1,125,000.

Activity in the bonds market was strong especially in Malta Government Stocks (MGSs). A total of 92 transactions were executed across 23 MGSs for a turnover above Lm10.33 million. The majority of these stocks registered declines in their prices. The recent three new stocks issued by the local government could commence trading from last Thursday, however the only one to trade was the 5.7 per cent MGS maturing in 2012, which, however, traded unchanged (Lm102.36).

On the other hand, 11 local corporate bonds were active and registered a total of 22 transactions for a value of Lm37,103. Furthermore, two deals were executed in two different Treasury bills for a nominal value of Lm566,000.

This article, which was compiled by Jesmond Mizzi Financial Services Limited (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. The directors or related parties, including the company and their clients, are likely to have an interest in securities mentioned in this article. For further information please contact JFMS at 67/3, South Street, Valletta or on tel: 2122 4410.

jmizzi@jmfs.net