Financial equities dominate trading

Last week the Malta Stock Exchange index gained in every trading session, thereby returning to positive territory following the previous week’s minimal decline. The index edged 1.56% up, closing the week at 3,522 points.

Out of 12 equities traded, seven closed the week higher, four remained flat, with only Lombard Bank plc losing ground. Last week’s increase helped the index improve its year-to-date gain to 1.78%. Trading volume in the equity market remained relatively high, with over 430,000 shares exchanged in 197 deals.

Bank of Valletta plc (BoV) continued to be in the limelight as the highest traded equity despite its shares gaining value only on Monday. In Monday’s session BoV shares appreciated almost 1.1%, backed by 37,019 shares across 28 deals.

Despite trading in every session, the share price fluctuated minimally between €3.69 and €3.70, an unusual situation in BoV’s case. Although the bank remained the highest traded equity last week, volume has started to decline, with 124,563 shares traded last week compared to 168,000 shares the previous week and 210,000 shares two weeks ago.

HSBC Bank Malta plc rebounded from the previous week’s fall, with a healthy gain of almost 3.5%, to close the week at €2.98. HSBC’s share price rose on Monday, Wednesday and Thursday and lost ground only on Friday. Despite this rise, the equity is still at a year-to-date loss of 7.7%.

The equity’s share price was more volatile compared to BoV, ranging between €2.88 and €2.998. Trading volume rose slightly from the previous week to reach 40 deals involving 49,393 shares, compared to the previous week’s 40,000 shares over 26 deals.

A gain on Tuesday and a decline on Thursday cancelled each other out to maintain Fimbank plc’s share price flat at $0.94, as the equity almost overtook BoV on trading volume last week. Trading in this equity was concentrated on Tuesday’s session, when over half the total of 111,419 shares traded last week changed hands.

A Fimbank interim directors’ statement on Monday stated that “the Fimbank Group performance for the second half of 2010 continued to show the positive trends already in evidence in the financial results for the first half of the year”.

Conversely, a mere 400 Lombard Bank plc shares were traded last week in a single deal executed at €2.65, resulting in a 3.64% fall, thus registering its second consecutive week of decline.

After four weeks of no week-on-week price movements, Middlesea Insurance plc increased its year-to-date positive performance to 30.6%, after a solid 5% weekly gain. The equity’s share price rose in three trading sessions, floating between the previous week’s closing price of €1, and last week’s closing price of €1.05. The volume of trading rose to 11,291 shares across seven transactions.

Last week a Middlesea interim directors’ statement announced that the third quarter of 2010 was characterised by a continued positive result emerging from the Group’s insurance portfolios and subdued investment returns as a result of the deterioration in the performance of the local equity market. The directors also commented that the third quarter performance was in line with the reports issued for the first six months of 2010.

Malta International Airport plc’s share price closed the week at €1.648, a rise of 3%, as investors’ appetite for this equity rose to 24,270 shares. Mid-week, in an interim directors’ statement announced that no material events and/or transactions have taken place that may impact the company’s financial position, which has remained sound.

Maltapost plc’s share price gained value on Wednesday and Thursday to end the week 1.87% higher at €0.927. Trading volume rose significantly from the previous week, as 10,396 shares were exchanged across two deals.

Low trading in Simonds Farsons Cisk plc and Loqus Holdings plc shares left their respective share prices stable at €1.75 and €0.18.

Similarly, International Hotel Investments plc’s share price remained intact at €0.77 in two trading sessions. Although trading volume was once again considerable at 70,000 shares across six deals, it still fell short of the previous week’s 86,000 shares traded.

On the other hand, Go plc registered its third week in positive territory, as its share price rose 0.8% to close the week at €1.90, a level not reached since mid-August. Trading volume rose from the previous week’s 17,180 shares to 29,444 shares.

A single deal of 1,000 shares at €1.72 in Plaza Centres plc led to a 1.18% increase in its share price.

€643,000 worth of local corporate bonds were traded across 83 trades. Although most price movements in this market were minimal both the 6.2%-6.8% IHI 2013 bond and the 6.6% Eden Finance plc 2017-2020 bond rose over 1.9% last week while the 7% MIDI plc GBP 2016-2018 lost 2.14%.

Meanwhile, trading value in Malta Government Stock fell to €863,095 last week, as most government bonds shed value. This followed the previous week’s heavy demand for the two new issues.

Last week the Treasury announced that all applications for the 3.75% MGS maturing in 2013 were met in full, while in the case of the 5.25% MGS 2030 the first 20,000 was allotted in full while 36% of the balance was to be allocated to applicants. Total trading in Treasury bills reached a level of over €2.39 million.

This article, which was compiled by Jesmond Mizzi, joint managing director of Atlas JMFS Investment Services Ltd, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange. 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 Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@atlasjmfs.com.