Trading volume high but lacks direction

Last week, the Malta Stock Exchange was characterised by very heavy trading volume notwithstanding the mid-week national holiday.

Indeed, last week’s volume was one of the most significant over the past few months both in terms of volume and value traded, with nearly 1.9 million shares valued at almost €3.1 million changing hands. However, price volatility was fairly subdued throughout the week for the most traded equities.

The MSE index initially rose slightly in value, yet selling pressure eroded all the gains, plunging it into negative territory to end the week at 3,856.828 points, or 0.23% lower. A total of 11 equities were traded last week, four of which climbed higher, three lost some ground while the remaining four closed unchanged.

Half of last week’s trading was concentrated in International Hotel Investments plc (IHI), with just over 981,500 IHI shares changing ownership, mostly on Monday. This large volume of trading resulted in a jump in the share price from the previous week’s close of €0.95 to €0.975 on Monday.

There was some minor trading in the remaining sessions, resulting in a slight reduction in the price to €0.97, at which it closed the week. Overall therefore, IHI improved by 2.11%, retracing some of the recent losses experienced.

Bank of Valletta plc was the second most heavily traded equity last week, with trading activity spread throughout the four sessions of last week. A total of 423,240 shares changed hands, backing a drop in the share price, which slumped to €3.04 on Monday from the previous week’s close of €3.13. Further trading throughout the week kept the price very close to €3.04, therefore providing support at this new lower level to end the week at €3.049.

There was also high trading volume in Midi plc, with a total of 110,000 shares traded in a mere four deals, though its share price remained intact at €0.45.

Just over 171,300 shares in HSBC Bank Malta plc were traded last week with the share price initially remaining fairly unchanged. By the end of the week it had fallen slightly by 0.86%, thereby finally drifting from its recently static price of €3.50. HSBC shares have risen by more than 6.6% so far this year.

A total of 75,000 Fimbank plc shares were exchanged over two deals on Monday. However, the share price remained unchanged at $0.95. On the other hand, Maltapost plc’s share price reached new highs last week on a fairly decent trading volume of nearly 55,500 shares. Initially, trading occurred at the previous week’s clossing price of €1.05 only to be bid higher on Friday to end the week at €1.07, a rise of 1.90%.

Malta International Airport plc continued to outshine all local equities with its share price soaring 5.71% week-on-week as a total of 22,570 shares were traded over the past week. This equity closed Friday’s session at €1.85, a new all-time high and 11.45% above the end of year 2010 price.

Middlesea Insurance plc’s share price was volatile last week ranging from a low of €1.03 to a high of €1.07, only to close at €1.04 on Friday. However, volume was subdued, amounting to only 12,313 shares traded mainly in the week’s first three sessions.

A low volume of nearly 9,400 Go plc shares were traded sporadically throughout the week, resulting in a drop in Go’s share price to €1.899 from last week’s €1.92. Thusn this equity’s price has falled 1.86% since the start of the year.

On the other hand, low volume kept the prices of both Lombard Bank plc and Simonds Farsons Cisk plc unchanged at €3 and €1.80 respectively.

Last week, Plaza Centres plc announced that its board of directors is scheduled to meet on March 3 to consider and approve the company’s audited financial statements for the year ended December 31, and consider the declaration of a final dividend.

Trading in local corporate bonds was average last week with a market value just over €0.6 million. Bond prices were generally flat to slightly negative, with the 4.25% Fimbank dollar bond maturing in 2013 shedding the largest value when it fell 1.96%.

Last week, Mediterranean Investments Holdings plc (MIH) announced that the Palm City Residences were completed at the end of November 2010 and that to date over 70% of the residential units have been leased. Following this favourable response, MIH said it has already embarked on its second development, the Medina Tower in the heart of Tripoli.

Most Malta Government Stock prices fell in value last week, with value traded surpassing the €5.6m mark. Nearly half of this trading occurred in the 5.7% MGS maturing in 2012, which fell by a slight 0.15%.

On Wednesday, the Treasury issued the prices for the new government bonds with the 4.25% issue maturing in 2017 priced at €101.25, while the long-dated issue carrying a coupon of 5.25% maturing in 2030 is priced at €101.50. The new stocks will be on offer to the public as from tomorrow.

Trading in the Treasury Bill market amounted to €0.37m in value.

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.