Bank of Valletta shares collapsed a full 28c to close the week at Lm3.67, for a 7.3 per cent loss. The bulk of this fall happened yesterday (13c) and on Thursday (11c). On Thursday morning, before the opening of trading on the Stock Exchange, The Times Business Section published an article in which confirmation was given (one presumes on Wednesday) by none other than Investments Minister Austin Gatt that the government and Capitalia had extended by six months their agreement to jointly sell their shareholdings in BOV. The rest of the article regurgitated parts of an April 5 interview with BOV chairman Roderick Chalmers. The parts referred exclusively to BOV's price-earnings ratio, followed by ominous speculation - attributed to "sources" - about Capitalia's patience, presumably on the expiration of the renewed agreement.
Stockbrokers only received official confirmation when a company announcement from BOV was received by e-mail at 3 p.m. on Thursday (three hours after the close of trading) quoting a letter from the government's Privatisation Unit, also dated Thursday, August 24.
For the record, the market capitalisation of BOV lost a staggering Lm31 million last week, and at the end of trading the best bid was for 3,000 shares at Lm3.55,4, with the best offer of 400 shares at Lm3.57.
In a week where not a single equity, out of the 11 that traded, gained, it is small consolation for BOV shareholders that Lombard Bank's shares fell by more than twice those of BOV. On a turnover of 14,572 shares, Lombard's share price fell 88c4 for a flagellating 15.8 per cent fall over the week. The best bid for 5,000 shares was at Lm4.40 with 610 shares on offer at Lm4.99.
MIA was the week's third worst performer with a five per cent fall on a turnover of 42,318 shares. The shares closed 7c down on the previous week at Lm1.35 - 5c below the Lm1.40 share offer price last October. At the end of trade the best bid was 3,450 shares at Lm1.30 while the best offer was for 1,370 shares at Lm1.38. The market seems to be driving home, in cold cash terms, the drops in tourist arrivals.
The march of misery did not miss Maltacom, which started the week unchanged at Lm1.93, slipped 1c on Tuesday, and another 2c on Wednesday to touch rock bottom at Lm1.85 on Thursday - 6c short of its 2006 low. It did not trade yesterday, thereby showing a drop of four per cent on the week, at the end of which the best bid was for 500 shares at Lm1.85, and the best offer was for 1,000 at Lm1.87.
HSBC Bank Malta plc shares ranked fifth in the litany of losers, with a comparatively light two per cent loss for the week. It closed down 4c at Lm2.05, which is the lowest closing price since the 3 for 1 bonus share issue, last April. In the four-and-a-half months since, HSBC's share price is down by 31.7 per cent from its Lm3 intra day all-time high. This is an even steeper fall for the largest capitalisation component of the Malta Stock Exchange Index, which itself is down 23.6 per cent since its all-time high exactly five months ago (6,641.87 on March 28).
The festa season did not help Farsons, which fell a cent (1.33 per cent) to a fresh low for the year at 74c on turnover of 8,546 shares. Supply of 627 shares at 75c is the best offer, with the best bid being for 854 shares at 73c1.
In Middlesea Insurance, turnover of 7,429 shares saw the price discard 3c (1.2 per cent) to close at Lm2.50 - which price is asked for the best offer of 715 shares, while the best bid is for 200 shares at Lm2.48.
GlobalCapital closes the sad story of last week's trading, in which a miniscule 940 shares changed hands, and the price fell 1c9 (0.9 per cent) to Lm2.18. At the close of trade, the best offer was for 500 shares at Lm2.17,9, while the best bid was for 500 shares at Lm2.08,5. Suncrest and Plaza did not trade.
Total turnover by value in Malta Government Stocks exceeded the Lm1 million mark, which was transacted across 45 deals. Activity in the Corporate Bond Market picked up substantially this week with total turnover by value reaching Lm151,734.36 spread over 20 deals.
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