The Malta Stock Exchange index fell 1.38% to close the holiday-shortened week at 3,090.282.

Although negative, the local equity market performance was not as bad as that of most global equity markets which saw sharp drops, particularly on Thursday.

Investors worldwide shunned most assets, including gold, which is generally considered a safe haven in times of crises.

The global sell-off was particularly accentuated in European markets given the overall escalation of worries mainly connected with government debt problems and financial instability.

When seen against this gloomy background the local market’s slight fall is very encouraging. Volume of trading was fair given that the trading week was shortened by a holiday.

Total volume easily surpassed the 200,000 mark. Nine equities were traded last week, four of which ended in positive territory, four declined and a single stock remained unchanged.

As has been happening for several weeks now, the bulk of trading was mainly concentrated in Bank of Valletta plc shares. Just over 73,000 shares were exchanged during the four trading sessions.

The largest chunk of this trading occurred on Monday with the price, however, remaining stuck at €2.50. Thereafter, however, this equity defied all the global uncertainties and dismal scenarios and actually climbed moderately to end the week at €2.53, or 1.20% higher.

Global financials were among the worst hit sector over the past week particularly given the renewed financial instability given the uncertainty related to a potential Greek default and the knock-on effect on most European banks.

However, the share price movement of HSBC Bank Malta plc was also somewhat detached from financial equity movements around the world. HSBC’s share price fell by 2.59%, most of which occurred in the first half of the week, which was then partly reversed on Friday. Just over 49,000 shares were exchanged, with the bulk of this trading backing the fall.

Last week Lombard Bank plc slipped slightly by 0.78% on very slight volume.

On the other hand, Go plc’s equity share price has been moving very much in tandem with equity markets for several weeks now. Indeed, this stock was one of the directly hit local equities, resulting in a hefty drop of 6.67%.

This equity has plunged to a new year-to-date low of €1.12, after having even traded at €1.05 during the week. Its share price has deteriorated by well over 42% since the start of the year.

International Hotel Investments plc shed 5% of its value to close at €0.76. Volume, however, was very sparse with only 10,740 shares changing hands over three deals on Monday.

Conversely, low trading volume led to further gains in RS2 Software plc’s share price, which continues to soar week after week.

Last week’s 3.45% gain adds on to the year-to-date gains which have now accumulated to 25% to reach €0.60, significantly outperforming the general local market, which has fallen by well over 18% during the same period.

Very low trading volume led to a minimal 0.93% gain for Maltapost plc, while Malta International Airport plc closed unchanged at €1.53.

On Tuesday a deal involving 3,787 Global Capital plc shares resulted in the share price doubling in value from €0.50 to €1. The conviction of such an important move is, however, lacking given the minimal amount of shares traded.

There was nearly €580,000 worth of trading in local corporate bonds last week.

Bond prices remained fairly unchanged except for an 8.4% climb in the 5.6% Global Capital plc maturing between 2014 and 2016. Once again, barely 11,000 nominal of this bond were traded during the whole week.

Local investors refocused on the market for Malta Government Stock last week, with trading totalling just over €11.2 million. Most government stocks approached or reached new highs for the year. This was very much expected given that the benchmark German government bund prices reached new highs following the hefty rush to safety towards the end of the week.

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.