Financial news

Equity trading remained in the doldrums during the final session of the week with sellers offloading shares, on low volume, onto the bid side. A buyers' strike seems to be in place too, which further augments the general negative sentiment on the local market. As a result the MSE index shed 0.38 per cent to close yesterday's session at 4,828 points.

Middlesea Insurance was the day's worse performer as 3,100 shares were sold across a single transaction thereby squeezing the price lower by 5c or three per cent to Lm1.60, its lowest level since September 2005. Investors sentiment has remained gloomy notwithstanding the positive interim results, reported in late August, which showed a 55 per cent increase in profit before tax on ordinary activities to Lm1.9 million.

Bank of Valletta too closed in negative territory shedding 1c9 or 0.5 per cent as 2,900 shares were transacted across six trades. The equity seemed heading to a slightly higher close, however the last trade was struck at Lm3.58 as a partially filled order was completed against the best available bid. Investors seem to be taking a cautious approach to the largest bank in assets terms, prior to the issue of the bank's full-year results on the October 26.

HSBC Bank Malta gave back its entire previous session's gain, as 7,145 shares were sold across nine transactions. Once again selling activity cleared all demand at the Lm1.90 leaving a further 2,755 shares outstanding on the offer side at this level.

The silver-lining was provided by 6pm Holdings, the most recently listed equity, which climbed by a further penny to of £0.71, thereby continuing their recent positive run. The day's activity consisted in merely 340 shares which were swapped across two transactions.

Elsewhere, 1,850 shares of Simonds Farsons Cisk were swapped without affecting its previous closing price of Lm1.08.

Government bond prices moved lower across the whole curve, with trading consisting of single deals in just five securities.

Weekly MSE Equity report

Persistent negative sentiment amongst local investors continued to weigh down local equity prices with the MSE index registering its fifth consecutive week of declines.

Bank of Valletta shed half a percentage point over the past five sessions as 18,143 shares were swapped across 25 transactions.

Maltacom shareholders had nothing to cheer about as their company lost a further 0.1% to close the week at Lm1.38,7. Next week, shareholders are called for an Extraordinary General Meeting to vote on a resolution to change the name of the company to Go.

Middlesea Insurance suffered the worst fate, shedding 3 per cent of its value on low volume trades which saw the price decline to Lm1.60, its lowest level in 25 months.

On the contrary, Simonds Farsons Cisk gained 0.9 per cent to close at a multi year high of Lm1.08.

6pm Holdings was the week's top gainer as the market newbie climbed to a new high of 71 pence as 2,740 shares were swapped across 5 transactions.

Otherwise trading activity, albeit in low volumes, struck in HSBC Bank Malta, International Hotel Investments, Malta International Airport, FIMBank, Lombard Bank, Medserv and Plaza Centres failed to change their closing prices on a week by week basis.

This article was compiled by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA. Bonds and shares may be purchased and sold from any BOV branch. Further details may be obtained by contacting us on tel.: 21312020 or email: customercare@bov.com