81 trading days to go

So it's eight months gone and four to go. However, if that sounds like a lot, the number of actual trading days till the end of the year is just 81.

In what, one hopes with an air of cautious optimism, is a good sign to the run up to the year-end, the MSE Index edged forward tentatively by 0.6% to end the week at 4,907.841 - which is also a positive 0.71% increase in the first eight months of the year.

Even the two largest capitalisation stocks, HSBC Bank Malta plc (HSB) and Bank of Valletta plc (BOV), both closed last month a healthy 4.9% and 2.8% respectively, ahead of their 2007 lows.

The Malta Stock Exchange enjoyed an active week, both in trading and reporting terms. On the trading front, the last week in August produced the fourth highest equity turnover by value, which came in at a shade under Lm880,000 - double the previous week's. On the reporting front, we had two large cap stocks, International Hotels Investments plc (IHI) and Maltacom plc (MLC) issuing their interim financial statements, as did the Alternative Companies List Datatrak plc (DTK); in addition various Corporate Bond Issuers also released their interim reports to June 30.

This was also, undoubtedly, the week that saw the big banks back leading in a big way. Equity turnover by value in BOV and HSB accounted for a gargantuan 81% of the week's total. BOV pushed ahead to a three-and-a-half-month high of Lm3.65, while HSB was still stuck to the Lm1.93 price tag. The other positive performers were IHI up 2.8%, Fimbank plc (FIM), ahead by 2.1% and Malta International Airport plc (MIA) up a miniscule 0.4%. MLC, on the back of its Goldilocks-like set of accounts - not too hot, not too cold - was punished with a 3.4% drop. However, the mood on the market this week was generally positive.

A fairly active start on Monday saw BOV open slightly higher at Lm3.583 and close at Lm3.581, with an encouraging turnover of 10,925 shares. Most of Tuesday's deals were executed between Lm3.581 and Lm3.60, with the final two taking the price up to Lm3.60. Wednesday's trading was a near copy of Tuesday's. On the other hand, Thursday saw BOV turn into a whirlwind of activity; a bevy of deals raced across stockbrokers' screens at the opening bell at Lm3.60; the deals continued unabated as the price advanced in stages to stop at Lm3.65. In a 21-minute span from 10.45 a.m. to 11.06 a.m. a very hefty 87,755 shares changed hands for a value of Lm317,137. No more deals were executed for the day. Friday saw a comparatively subdued 6,370 shares traded with dealing starting at Lm3.631 but closing the day unchanged at Lm3.65, for BOV to end the week 2.1% up.

BOV accounted for the lion's share of the week's equity business with 116,743 shares transacted for a value of Lm421,434 - a full 48% of the week's total. At the end of trading total bids for 450 shares were at Lm3.626, whereas offers of 2,379 shares started at Lm3.65.

HSB opened the week practically unchanged at Lm1.931. However it lost its footing, slipping to Lm1.92 and ended the day at Lm1.911. Volume was very strong with 46,556 shares traded. It was even more robust on Tuesday as 70,110 shares changed hands. The price however eased back to trade mainly at Lm1.90, hitting an intra-day low of Lm1.89, but closing at the former. It was stable at Lm1.90 on Wednesday and traded consistently at Lm1.91 on Thursday. On the last day of the week, after a flat start, the final three deals were effected at Lm1.93 so that HSB ended unchanged on the previous Friday. The week's volume totalled 150,263 shares with a value of Lm287,613. At the end of Friday's session, bids for 6,500 shares were at Lm1.91, while the best offer for 10,093 shares stood at Lm1.93.

IHI enjoyed a positive start on Monday, with the day's three deals executed at successively higher prices of €1.08, €1.09 and €1.10. On Tuesday, a 20,000-share deal was struck at €1.08, but the final deal for 300 shares took the price back up to €1.10. Thursday's two deals were effected at €1.10 and €1.11, but the price fell back to €1.07 by Friday's open. However, brisk trading took the price back up to €1.10 for 2.8% increase on the week.

The interim results for the period ended June 30 were released on Thursday. These show that turnover for the six-month period increased by 39% from €28 million to €39 million. All the group's hotels registered increases in their turnover levels over the same period last year, with Corinthia San Gorg in Malta and Corinthia Lisboa in Portugal leading the performance tables. The loss before tax, at €1.6 million, decreased by 52% from a loss of €3.33 million in the corresponding period for 2006. Even the €0.006 negative earnings per share was an improvement of 70%. The day of IHI's first dividend, hopefully, draws closer.

MLC was generally steady on Monday, trading in a range of Lm1.44-Lm1.45 to close the day unchanged at Lm1.45; Tuesday was identical. It did not trade on Wednesday or Thursday and was back in action on Friday, after Thursday's release of its interim results. A mere 2,000 shares changed hands, opening lower at Lm1.435 and closing at Lm1.404. This made MLC the Official List's worst casualty of the week, down 3.4%. Total turnover was 22,500 shares, with a value of Lm32,451. At the end of trading, best bids totalled 650 shares at Lm1.401 with a supply of 20,000 shares at Lm1.424.

The published half yearly results show that the company recorded a profit before tax of Lm5.4 million. Although this is 14.5% (Lm0.9 million) less when compared to the Lm6.3 million over the same period last year, a full Lm721,000 of this was incurred in voluntary early retirement benefits, as the company's restructuring continues unabated. Earnings per share also declined by a nearly identical 14.6% from 4c1 to 3c5. The board does not propose the payment of an interim dividend. Unless the final dividend will makes up for the absence of an interim one, the chairman will need to explain why the company has veered from its "determination to continue with its progressive dividend pay-out ratios".

Group turnover increased by 2% to Lm27.1 million, while the cost of sales decreased by 1.9% to just over Lm14.4 million. On the other hand, administrative and distribution expenses increased by a not insubstantial 15% to Lm6.7 million. Other operating income was down 72% from Lm203 million to Lm56 million.

MIA started the week a shade lower at Lm1.388 but advanced gradually on steady turnover of 14,230 shares to close the day at the previous week's close of Lm1.395. It picked up to Lm1.40 on Tuesday. After a mid-week break, MIA was back in action around the Lm1.40 mark on Thursday, ending the day and the week at this level, for a gain of 0.4%. Total turnover consisted of 35,280 shares for a value of Lm49,248. At the end of the session, unsatisfied bids of 1,800 shares stood at Lm1.39 while offers for 16,421 shares started at Lm1.40.

FIM started out on Monday ahead by a cent at $1.91, rising to $1.94 in the final deal. It only traded again on Thursday, opening lower at $1.919 but closing unchanged at $1.94 in an active session with a turnover of 56,450 shares. At $1.94, FIM closed the week 2.1% higher.

Trading in Simonds Farsons Cisk plc was restricted to just two deals totaling 500 shares at the unchanged price of Lm1.02 on Tuesday.

DTK stirred after three weeks' absence; the single 3,000-share deal was executed on Tuesday at a 2007 low of 22c. This followed the company's release of its interim results on Monday for the six months ended June 30. These showed that the company registered a loss of Lm55,726 as compared to the Lm52,397 profit registered in the six months ending June 30, 2006 - a colossal 206% freefall. Loss per share attributable to equity holders changed from -0c2 to -0c5.

In the Government Bond market, turnover by value reached Lm1.43 million with 54 deals struck in 18 stocks. In the corporate bond market there were 12 deals for a total turnover value of Lm32,907.2. Turnover value in the Treasury Bill market totalled Lm1.46 million.

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