Financial news

The MSE Index increased by a slight margin of 0.04 per cent to close 4,226 points during yesterday's trading session at the Malta Stock Exchange. This near balance was brought about by gains registered in the largest index component, HSBC Bank Malta, which gained 1.3 per cent thereby making up for losses in six other equities. Activity was spread over seven components, with a total of 35 trades executed and an aggregate value of €128,002 of euro denominated equities and $109,717 in the only US dollar denominated share on the local exchange.

Trading in HSBC Bank Malta started at its previous closing price of €3.75 at the opening bell and thereafter traded higher by 5c to close at €3.80, representing the only positive closing in the session. Turnover consisted of 13,035 shares which changed hands across 13 transactions.

Maltapost was the largest laggard of the session, declining 8.41 per cent over four deals consisting of 5,000 shares, thereby closing at €0.751.

Interest in Crimsonwing to the tune of 6,145 shares lowered the price by 1.96 per cent, down to its initial public offering price of €0.50.

Bank of Valletta started trading late in the session, dropping 4c at the onset and losing more ground in deals that were executed moments before the closing bell. The equity closed at €4.749 with a total turnover of 13,722 shares spread over nine transactions.

A sole trade with a small volume of 350 Go shares depressed the price by half a percentage point to close at €2.74.

Selling activity in International Hotel Investments lowered the price by a mere 0c5 with the equity closing at €1.073. Turnover here consisted of 5,500 shares which changed hands over three deals.

The highest turnover was registered in FIMBank, where trades for a total of 58,506 shares caused the price to fall to $1.889 level.

Weekly MSE equity report

For the eighth consecutive week, local equities got hammered by investors who remain firmly in negative mode notwithstanding the fact that most equities are trading at their lowest level since October 2005, and sporting very high dividend yields. Over the five-day period, the MSE Index lost 0.8 per cent to close at 4,226 points.

The week was particularly negative for Crimsonwing which shed 7.4 per cent.

In the banking sector, HSBC Bank Malta closed the week unchanged at €3.80, however Bank of Valletta declined 2.1 per cent to close the week at €4.749.

Lombard Bank recouped 2.5 per cent to reclaim the €3.075 level. Similarly, FIMBank gained half a percentage point to close at $1.889.

The announcement of a strategic partnership between International Hotel Investments and Intourist received a lukewarm reception by the market, with the equity closing the week lower by 1.1 per cent.

Global Capital lost 3.4 per cent over the period to close at €2.85, while weakness in Go saw the equity lose a further 2.1 per cent of its value.

Maltapost lost ground during the final session of the week, and dropped back to the €0.751 level.

Malta International Airport and Plaza Centres were among the gainers for the week with the aerodrome operator moving higher by 0.1 per cent to €3.115 and the commercial property operator gaining 0.3 per cent to €1.725.

Otherwise, Middlesea Insurance and Simonds Farsons Cisk closed unchanged at €3.43 and €2.71 respectively.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.