Although the volume of shares traded on the Malta Stock Exchange last week rose significantly, share prices struggled to find clear direction. In the week's first two sessions the two main banks lifted the MSE index moderately higher to reach 3,855.483 intra-week but most of this gain was erased in the week's last two trading sessions, with the index closing Friday's session at 3,837.069, a minimal 0.27% on the previous week.
The local index therefore underperformed compared to most international indices, which reported steady gains throughout the week. However, year-to-date the MSE is still showing a healthy gain of nearly 11% while most indices in developed countries are slightly negative or barely breaking even.
A total of 465,372 shares changed hands last week, a notable improvement over previous weeks although share price movements were very limited. Nearly 75% of this volume was concentrated on three equities, namely Maltapost plc, Bank of Valletta plc and HSBC Bank Malta plc.
The lion's share of total volume traded last week - nearly 193,000 shares - were in Maltapost plc. On Monday the company said its turnover was similar to the corresponding period last year, with operating profits in line with forecasts. It said the company's financial fundamentals remain strong and targets are achievable.
Wednesday's session saw hefty volume boost the share price up by 5.5% to €0.77. The following session retained the same price with the backing of nearly 115,000 shares. The equity closed Friday's session at €0.775, or 3.33% higher than the previous week. Since the beginning of the year the share price has risen 10.7%, and has gained 29% since its low in November 2009.
Similarly, a significant 85,000 HSBC Bank Malta plc shares were traded last week in all five trading sessions. Price volatility for this stock was, however, somewhat subdued, with some of the initial sessions' gains practically reversed by the end of the week. The share price closed on Friday a mere 0.21% or €0.008 up at €3.858. The bank will announce and review its financial results for 2009 tomorrow.
Bank of Valletta plc enjoyed a better week than its main competitor, with its share price climbing 2.88% to close Friday's session at €3.498. On Tuesday it had managed to reach the €3.50 level only to edge slightly lower in the subsequent trading session. Volume was spread fairly equally throughout the week yet the share price upward moves were backed by a slightly larger amount of shares.
The improved sentiment in BoV is probably the result of reiteration of strong results and a steady performance during the announcement that in the coming days the bank will be issuing €50 million subordinated bonds maturing in 2020 with a coupon of 4.8% per annum, with an option to increase by an additional €20m in case of over-subscription.
The volume of Middlesea Insurance plc shares traded increased slightly from the previous week, possibly indicating a cautious return of investor interest in this stock. However, the share price was still very sticky and closed the week unchanged at €0.75, a clear indication of conflicting forces or persisting uncertainty following the previous week's drastic decision to close its Italian subsidiary.
An usually high volume of just over 21,000 Santumas Shareholdings plc shares changed hands last week over five deals. Although the share price closed on Friday unchanged at €2.60, intra-week the price had fallen to €2.50. However, the bulk of trading volume immediately reversed this drop in the following trading session.
Following the previous week's hefty drop, Grand Harbour Marina plc was last week's best performer when its share price soared by 7.47% to close at €1.87.
On the other hand, International Hotel Investments plc shares fell out of favour, shedding 2.50% last week. Although there was only one transaction and the volume traded was minimal, given IHI's large capitalisation, the fall was a considerable drag on the MSE index, minimising any gain achieved from the larger capitalised banks.
Trading in Go plc started drying up last week with just over 11,000 shares changing hands over six deals. The share price was only a tad lower, ending the week at €2.29, a minor 0.43% loss.
Malta International Airport plc's share price shed 1.64% last week to close at €3 after just over16,000 shares were traded.
Simonds Farsons Cisk plc, Lombard Bank plc and Global Capital plc all lost ground last week, yet volume traded was minimal. Fimbank plc's share price remained unchanged at $1.18.
As long-term yields in Europe edged slightly higher last week, most long-term Malta Government Bonds reported a fall in price. Value traded amounted to €868,000, while local corporate bond prices were mixed with total value traded amounting to €490,000.
A total of €4.4 million worth of trading took place in the Treasury Bill market.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed by the MFSA. The directors or related parties, including the company and their clients are likely to have an interest in securities mentioned in this article. For further information contact JMFS at 67/3, South Street, Valletta, on Tel. 2122 4410 or e-mail jmizzi@jmfs.net