On Friday the Malta Stock Exchange index closed at 3,094.799 points, thus ending 2011 with a hefty 18 per cent loss, which is in line with other European indices. Sentiment during the week was generally positive, with the majority of the active equities closing the final week of the year in positive territory.
The last week of trading for 2011 on the local stock market saw the MSE index gaining 0.65%. Due to the holiday on Monday the local market was active on only four trading sessions but the MSE added gains for the second successive week.
European indices were again bordered by the never-ending sovereign debt crisis as eurozone banks parked a record €452 billion at the European Central Bank as a safety measure rather than deposit on the interbank market.
The euro fell to a 15-month low against the US dollar after Italy fell slightly short of the €8.5 billion target in its bond sale, despite paying lower yield than recent sales.
Notwithstanding this, the European indices managed to end the week in positive territory despite a dismal year in which the CAC 40 in Paris fell by 17% and the Xetra Dax in Frankfurt lost 15%.
On the other hand, US equity indices were lower on the week despite positive US economic data adding some optimism on the economy’s recovery. However, US markets outperformed European indi-ces big time in 2011 with the Dow Jones Industrial Average managing to end 2011 up by 5% while the S and P 500 ended the year flat.
Coming back to the local market, Midi plc shares headed the list of gainers last week while HSBC Bank Malta plc was the only equity to lose value. The bank lost a mere 0.04% to close the week at €2.579. Hence HSBC’s share price went down by nearly 21 per cent in 2011.
In 2011, the financial services sector was among the worst performing industries as the European debt problems persisted and among other negative news, reports that activity in the local property market has dipped also adversely affected the banking sector. The two major local banks moved more or less in line with each other.
Since the beginning of the year Bank of Valletta plc shares lost 22 per cent of their value, or €0.715, closing the year at €2.50. Last week over 39,000 BoV shares were traded in 32 deals.
During 2011 a total of 5.5 million BoV shares were traded out of a total of 21 million traded in local equities, thus representing just under 26% of total volume traded.
On the positive side, RS2 Software plc ended the year on a high with a 25% gain. Last week the IT firm closed at €0.60, hence up by 1.7% on the week. The equity was among the most liquid, with 14,700 shares changing ownership in four transactions.
International Hotel Investments plc recorded similar gains as one deal of 1,200 shares during Tuesday’s session pushed the equity’s price higher by 1.69% to €0.844. Over the year the share price of the hotels operator lost nearly 11% over its value. The political uncertainty in Libya since mid-February negatively affected the equity’s performance.
Meanwhile, Midi plc topped the list of last week’s gainers as the equity jumped by 8.3%, or €0.029, during the week’s final session. However, trading volume was rather weak as 5,500 shares changed hands in two deals. Since start of trading earlier this year the equity shed 15.6% as it ended the year at €0.38.
Maltapost plc shares ended the year flat at €1 as the equity gained 0.5% on Tuesday, and it traded flat thereafter. Last week the equity was the second most traded equity as nearly 30,000 shares were dealt in 13 transactions.
Go plc managed to end the week unchanged at €0.98 despite having traded at an intra-week low of €0.95. Year-to-date the telecoms company’s shares nosedived by 49.4%.
Turnover in Go shares fell heavily last week with six transactions totalling 5,700 shares being recorded.
Malta International Airport plc also traded flat at €1.69 as three thin trades totalling 2,740 shares were executed. On the year, the airport operator managed a 2% gain.
Low volumes in Simonds Farsons Cisk plc pushed the equity’s price 5.3% higher, or €0.09, to end the year at €1.80.
In the Malta Government Stock market €1.1m was traded across 14 issues. Yields were mixed but skewed to the downside as nine issues saw their prices creeping higher, and five closed lower.
The long-dated 5.2% MGS 2031 was the most liquid as over €0.4m was traded. Government stocks remain by far the most traded securities in Malta and trading on the secondary market reached € 406m.
In the corporate bonds market just under €0.3m were traded across 57 deals. One deal of a mere 500 nominal in the 7% Grand Harbour Marina 2017-2020 pushed the bond’s price 3.4% higher. The 7.15% MIH 2015-2017 USD gained 2%.
During 2011, a total of €34m was traded in local corporate bonds as new bond issues dried up following a new guideline for issuers on the local market.
I wish all readers a prosperous New Year.
This article, which was compiled by Jesmond Mizzi, 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.