The first full week in July saw the local market trade rather directionless with a slight attempt to improve, during Tuesday’s session only to back off and slide into negative territory by the end of the week.

The index edged lower, ending the week at 3,323.537, a very moderate 0.3% decline.

For the past few weeks, the local market has thus continued to trade rather flat with moderate to low volatility yet very close to the lows of the year.

Trading volume is also gradually declining, partly indicating a stalemate situation and partly due to the overall summer lull typical during this time of year.

Trading activity was also particularly uninspiring for the local government stocks market.

Contrasting the local scene, global equities, particularly the major equity indices endedgenerally slightly positive last week despite falling on Fridayas US data on employmentfigure disappointed themarkets.

Eleven equities were traded on the local market with half of the nearly 189,000 shares exchanged last week being concentrated in Bank of Valletta plc shares.

The remaining equities saw moderately low amounts oftrading.

Interesting to note that the largely capitalised equities mostly closed the week unchanged, while the smaller equities saw some volatility in their share prices.

Only two equities climbed during the week, while four lost some value.

The remaining majority ended the week unchanged, yet this masks the intra-week volatility experienced by most of such equities.

Local investors remain consistently focused on Bank of Valletta plc, with trading reaching nearly 86,000 shares throughout the week.

A good portion of this volume backed downward moves over two sessions. Much less volume during Friday’s session reversed such losses to close the week unchanged at €2.70.

During Thursday’s session, the share price had reached a weekly low of €2.65.

Therefore generally speaking, notwithstanding the flat ending, the bias remains overall somewhat negative.

Last week, HSBC Bank Malta plc saw a slight pickup in volumecompared to previous weeks. A total of 22,000 HSBC shares changed hands during threetrading sessions.

Similarly to BoV, the share price ended the week unchanged at €2.92.

However, trading was very much a mirror image to its main opponent, with a good portion of trading supporting an improvement last Thursday which was erased during Friday’s session on less volume.

Trading volume was somewhat unusually high for MIDI plc shares with a total of 30,000 shares exchanged over two deals on Wednesday.

These deals led to a decline in the share price from €0.44 to €0.435 or 1.14%. This equityhowever continues to trade very sporadically.

Maltapost plc was one of the losers last week, shedding 1.58% following a decline from €1.015 to €0.999.

Trading volume, however, barely reached the 17,000 mark. Last week’s decline has dragged the share price below its initial price level for the year and is now showing a very slight negative performance year to date.

The equity has seen a gradual decline or profit-taking since March, with the share price sliding from its all time high of €1.10 to last week’s closing of €0.999.

A total of 15,000 Plaza Centres plc shares were traded last week, yet the share price was kept unchanged at €1.80.

Go plc saw a sharp reduction in trading last week with barely 7,000 shares exchanging hands.

This minimal volume however ignited sharp volatility as the share price fluctuated between €1.34 and €1.40 intra-week.

The price closed at €1.38 therefore ending the week unchanged. As is often the case locally, minimal volume resulted in a significant decline in the price of Malta International Airport plc.

The share price plunged by 5.9% following nine deals exchanging a total of 9,200 shares.

FimBank plc and Island Hotels Group plc ended the week unchanged, Simonds Farsons Cisk plc improved slightly, while Loqus Holdings plc declined minimally. Volume for such trades was however immaterial.

A value of €750,000 was trading in the local corporate bond market last week.

Price volatility was fairly subdued except for a moderate fall of 2.4% in the 5.6% Global Capital plc bond maturing between 2014 and 2016 and a hefty 6.3% climb of the 7.15% Mediterranean Investments Holding plc Euro bond maturing between 2015 and 2017.

As hinted initially, trading volume in Malta Government bonds last week was very subdued with a good portion of MGS prices edging lower.

The slight negative performance is understandable given a re-ignition of overall risk preference by most investors worldwide leading to a climb in yields, and a reduction in safe government bond prices.

Furthermore, last week the European Central Bank raised official interest rates of the eurozone by a further 0.25% to 1.50%.

As interest rates are expected to continue rising, government bond prices generally tend to fall.

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 thecontents therein should not be construed as such. Atlas JMFSis licensed to conduct investment services by the MFSAand a member firm of the Malta Stock Exchange.

The directorsor related parties, includingthe 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.