Financial news

Trading during the final session of the week at the Malta Stock Exchange resulted in a further decline in the index which dropped by 0.4 per cent to terminate at 3,048.44 points. Activity in the equity market was spread over an aggregate 24 deals as investors were active in six different listings.

HSBC Bank Malta was the session's weakest performer, for the third consecutive day, as the equity shed 3c or 1.1 per cent to end at €2.62. The financial services company was also the most liquid and actively traded equity as 11,505 shares were swapped over 11 deals for a market consideration of €30,347.

Bank of Valletta was a non-mover during the session as the equity closed unchanged at €2.90, despite trading at an intra-day low of €2.85. Investors in the bank transacted an aggregate of 8,268 shares over five deals.

Likewise, in the banking sector, Lombard Bank Malta remained static during the session as the equity closed unchanged at €2.60. Volume was nevertheless low as two investors swapped a mere 974 shares.

Low volume also characterised the trading session for International Hotel Investments as 850 shares were exchanged over a single deal. The hotel property and management group was on the list of losers as the equity dropped by a marginal 0c4 or 0.5 per cent to terminate at €0.841. On Thursday, the group reported a pre-tax loss of €1.4 million on the back of a 20 per cent drop in turnover.

Go defied the day's overall negative trend as its shares appreciated in value increasing by 1c or 0.6 per cent to end the session at €1.79. Activity in the quadruple play communications' company was relatively subdued as two investors transacted 1,500 shares.

Maltapost ended the session without altering the index as its price remained unchanged at €0.70. Trading activity in the postal operator's shares resulted when three deals were struck for a market value of €1,978.

In the fixed interest sector of the market, activity was spread over three government stocks and six corporate bonds. The highest turnover in the sovereign debt market was registered in the 5.9% MGS 2010(I) as €232,938 nominal were transacted over a single deal. However, the latter was also the day's worst performer as it declined by 33 ticks to close at €104.92.

The sole gainer in the corporate debt market was the 8% Bay Street Finance 2012 as the bond rose by 100 ticks over a single deal to terminate at €101.00.

MSE weekly report

The local equity market pulled back strongly during the past five sessions giving up most of the gains registered in the last weeks of July.

HSBC Bank Malta was the week's worse performer dropping sharply in excess of 12 per cent to close the week at the €2.62 level, following the aggregate sale of 47,618 shares across 42 transactions. Investors reacted negatively to a 25.3 per cent drop in pre-tax profit for the six months ended June 30, 2009 reported at €34.8 million which lead the bank to cut its net interim dividend by 35 per cent to 5c per share.

Bank of Valletta, declined three per cent in sympathy to terminate yesterday's session at the €2.90 level.

Otherwise in the banking sector, FIMBank and Lombard Bank Malta both closed the week unchanged at $1.29 and €2.60, respectively.

The week's trading in Malta International Airport consisted of merely 850 shares which were exchanged between two investors without altering its previous price of €2.35.

International Hotel Investments shed 6.5 per cent of its value during the week as 8,077 shares were sold down to the €0.841 level. The group published its half yearly results on Thursday reporting a pre-tax loss of €1.4 million following a 20 per cent decline in turnover.

Go was the week's sole gainer on renewed buying activity which propelled the telecoms incumbent higher by 2.3 per cent to €1.79.

Elsewhere in the market, trades were also struck in Maltapost, Middlesea Insurance, Plaza Centres and Simonds Farsons Cisk with all equities closing practically unchanged.

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.