Market going nowhere

With the fourth largest equity by market capitalisation - Maltacom plc (MLC) - changing its name on the Malta Stock Exchange (MSE) Official List, as from tomorrow, to Go plc, one can only hope that the mood on the MSE will take its cue and change from "what a way to go" to "let's go for it!"

With the bear market 20 months old tomorrow, an intravenous dose of positive energy is desperately needed. The 12 stockbroking firms listed on the MSE Website handled a total equity turnover for the week of just Lm233,094 - an average of less than Lm20,000 each! Go figure!

It was hard to find a ray of sunlight on the MSE this week. Five weeks from the end of the trading year, equity turnover sagged to the third lowest for 2007, with just one of the 15 listed equities, Medserv plc (MDS), ending the week in positive territory.

Bank of Valletta plc opened the week at Lm3.589, hit a high of Lm3.59 on Monday, and then gently eased back to close at successively lower prices till Thursday's Lm3.565. It closed the week at Lm3.568, down a slim 0.34% on the previous Friday. A total of 22,285 shares were traded for a turnover value of Lm79,634. At the end of the week, total bids for 3,690 shares were at Lm3.55, whereas offers of 2,368 shares started at Lm3.568.

HSBC Bank Malta plc (HSB) started out practically flat at Lm1.971 closing at Lm1.975. It traded at Lm1.97 from Tuesday to Thursday slipping to Lm1.965 by Friday's close, for HSB to end the week 0.7% lower on a total turnover of 30,572 shares, with a total value of Lm60,242. At the end of trading, bids for 8,015 shares were at Lm1.95, while the best offer for 3,525 shares stood at Lm1.965.

On Monday, in an interim directors' statement, HSB confirmed that in the four months to October 31, it has maintained good business growth, continuing the positive profit and balance sheet trends reported in the half-yearly results to June 30. Both customers' deposits and loans increased strongly over the same period last year, while a steady and stable loan-to-deposit ratio was maintained. Shaun Wallis commented that "HSB has a conservative balance sheet policy with relatively minimal funding from the wholesale markets, and minimal investment in non-government securities. Consequently, the uncertainty that has affected international markets over recent months has had no material impact on HSB's business." Did the market react? Oops, sorry - this is Malta, right?

MLC kicked off the week at Lm1.345 rising to Lm1.37 by the close. After a day's break it slithered back to Lm1.351 on Wednesday, slipping back to Lm1.34 where it closed the week. Turnover for the four days amounted to 19,735 shares with a total value of Lm26,618. At the end of trading, best bids totalled 3,400 shares at Lm1.30, with a supply of 1,500 shares at Lm1.335. MLC announced on Monday that at the previous Friday's extraordinary general meeting, all the resolutions on the agenda were approved, including the change in the company name to Go plc.

International Hotel Investments plc (IHI) was only active on Monday and Friday with 96% of the week's 75,712 shares traded on Monday between €1.015 and €1.03. Friday's 2,712 shares dragged the price down to €1.01, 2% lower on the week. On Wednesday, IHI issued an interim directors' statement announcing that, overall, the operational performance of the IHI Group for 2007 remains in line with forecasted targets which are an improvement over the results registered in 2006.

Malta International Airport plc (MIA) also only traded on two days; it was stable at Lm1.40 on Monday, and last traded on Tuesday at Lm1.399, to end the week an inconsequential 1 mil lower. Turnover was an unremarkable 8,550 shares for a value of Lm11,969. At the end of Friday's session, best bids were for 1,160 shares at Lm1.37, while offers for 3,800 shares started at Lm1.39.

Middlesea Insurance plc (MDS) hit a new all-time high of Lm1.78 on one deal for 3,700 shares on Tuesday, but shed 3c to Lm1.75 on a single deal for 1,000 shares on Thursday. Nonetheless, it still ended the week in the plus column - a singular occurrence on the MSE this week.

Lombard Bank plc started out unchanged and gained 5c to Lm5.25 on Monday, but stumbled 2.9% to Lm5.10 on Tuesday on a mere 500 shares. It did not trade again and ended the week 1.9% down on a turnover of just 1,250 shares.

Simonds Farsons Cisk plc opened the week unchanged at Lm1.12 but lost a cent on Thursday, the other day it traded, to end the week 0.89% lower.

Plaza Centres plc was only active on Tuesday when 1,600 shares changed hands, down 1.35% to 73c. GlobalCapital plc lost a cent to Lm1.78, on 240 shares on Monday, the only day it traded.

Neither Grand Harbour Marina plc (GHM) nor Datatrak plc (DTK) traded this week. The former issued an interim directors' statement on Monday confirming that it had not completed any berth sales during the first 10 months of this year, although negotiations are ongoing. On Thursday, DTK announced that, with immediate effect, Joseph Azzopardi had resigned from his post as non-executive director.

In the Government Bond market, turnover value reached Lm997,516 with 77 deals struck in 18 stocks. In the corporate bond market there were 24 deals for a total turnover value of Lm51,623. Turnover value in the Treasury Bill market totalled Lm314,238.

This report was provided by Financial Planning Services Limited, of Marina Court, G. Cali Street, Ta' Xbiex, which is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). The company is involved in acting as sponsoring stockbroker and corporate stockbroker. The directors or related parties, including the company and their clients, are likely to have an interest in securities mentioned. (tel. 2134 4243; e-mail: info@bonellofinancial.com).