The first full week of the fourth quarter of the year started in a positive manner for most foreign indices, particularly with a sudden boost in most equity prices last Monday. By contrast, the Malta Stock Exchange remains disconnected from international market movements.
Indeed, last week the local market fell under renewed selling pressure, with losses accumulating in every session. By Friday, the MSE index was down 1.44%, wiping out the improvements that had been built gradually over the past four weeks. This downfall was backed by substantial trading volume levels, further reaffirming the local market’s downbeat outlook.
There were transactions in 13 equities’ shares last week, with trading volume increasing encouragingly in the two main local banks. Losing equities outnumbered the gainers as five stocks worsened while only three improved.
Among the losers were highly capitalised equities and this influenced the overall index significantly. The remaining five equities closed the week unchanged. In total, nearly 333,000 shares changed hands over 168 deals.
Once again there was hefty trading in Fimbank plc last week, with just over 70,000 shares exchanged. The equity price tumbled by slightly more than 4% on Tuesday, recovering only marginally by Friday. Overall the share price shed 3.03% last week, closing at $0.96.
Since the start of the year, Fimbank’s share price has tumbled 12.7% lower in a nearly consistent downward spiral. Following the previous week’s announcement, the company reported that the listing authority had approved the prospectus for the 4.25% bond issue maturing in 2013, and also authorised the bonds’ listing on the MSE official list.
Bank of Valletta plc was one of the few gainers last week, ending 0.93% higher. Volume traded increased considerably from previous weeks, totalling nearly 69,500 shares. Trading was slightly choppy on the whole, yet ultimately buyers managed to push the equity price slightly higher, reaching €3.27 from the previous week’s close of €3.24.
On the other hand, HSBC Bank Malta plc’s share price got hammered immediately at the start of the week, albeit on scant volume. As the week progressed, hefty trading led the share price to fall even lower to end the week at €2.805, or 1.75% lower. The divergence between the two largest local banks therefore continues to widen significantly.
The share price of International Hotel Investments plc – the second largest capitalised equity on the local exchange – dropped suddenly by 5.9% on Thursday after 56,372 shares were sold. It closed the week at €0.80, a level it has not gone below since last March.
Both Plaza Centres plc and Malta International Airport plc (MIA) equity prices closed unchanged at €1.685 and €1.50 respectively last week irrespective of some intra-week upward moves for MIA.
An MIA announcement last week highlighting the airport’s traffic results for September reported the highest number of passenger movements ever registered in that month, and a 15.4% increase when compared to the same month last year.
Minor trading volumes in Maltapost plc, Grand Harbour Marina plc and Medserv plc resulted in unchanged closing prices. On the other hand, Middlesea Insurance plc (MSI) and Go plc recorded gains, although trading amounts were minimal. Both equities were only active in one trading session and each recorded a gain of €0.02 to end the week at €0.95 and €1.85 respectively.
Lombard Bank plc shares fell by a marginal 0.04% on low volume to end the week at €2.739.
Simonds Farsons Cisk plc shares suffered a sharp losses of 8.66% after 2,489 shares were traded in three deals.
Last week, the board of directors of Bay Street Finance plc announced that the company is inviting all holders of its outstanding 8% Bonds 2012 listed in the bondholder register as at last Friday, to offer their bonds for sale to the company as from Friday up to November 15, at the price of €102 per bond. Bondholders who submit their acceptance form will receive 102% of the redemption value of each bond plus accrued interest on November 24.
A total of €468,000 worth of local corporate bonds was traded last week. The prices of most traded bonds remained generally unchanged. However, the 7% Gap Developments plc bond 2011-13 ended the week just over 2% higher.
Although the value of Malta Government Stocks traded was once again very high last week, most MGS prices remained fairly unchanged or slightly lower, with the longer maturities shedding the larger amounts towards the end of the week.
Trading in the Treasury bill market totalled €2.6 million in value last 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.