This week the Malta Stock Exchange index closed at 3,307.94 points, at a loss of 0.28 per cent over last week. Since the beginning of the year the index has now lost 33.01 per cent. During the week, seven equities were negotiated, with one equity closing in negative territory, two closing in positive territory and four remaining stable. Shares of Fimbank plc lost most territory as its share price dropped by 6.74 per cent to $1.30 while Maltapost plc gained most territory with an appreciation of 5.26 per cent and closing at €0.80.
A total of 190 deals were registered on the stock exchange for a turnover of over €18.3 million. In the equity market 58 transactions were carried out for a total value of €179,340. In the corporate bond market 44 transactions for a total value of €806,569 were executed. While in the government bond market 69 transactions were executed for a value over €13.8 million. Eighteen transactions were carried out in the Treasury bills market for a value of over €3.4 million. The fixed income market was very active once again as investors anticipated interest rate cuts.
In fact on Thursday, the Governing Council of the European Central Bond decided that the interest rate on the main refinancing operations of the eurosystem will be decreased by 75 basis points to 2.50 per cent, starting from the operation to be settled on December 10, the interest rate on the marginal lending facility will be decreased by 75 basis points to three per cent, with effect from December 10 and the interest rate on the deposit facility will be decreased by 75 basis points to two per cent, with effect from December 10. This largest reduction even in interest rates was taken as Jean Claude Trichet, ECB president, warned that "we see global economic weakness and very sluggish demand persisting in the next few quarters".
Back to the local market, once again the two large banks remain the most active in the equity market. During this week Bank of Valletta plc remained stable as it closed yesterday's session at €3.62. Twenty-three deals were executed during which 22,780 shares were negotiated for a total value of €82,318.
The share price of HSBC Bank Malta plc increased by 0.31 per cent to €2.899 as 9,729 shares changed hands across 17 deals for a total value of €28,210.
As mentioned above the share price of Fimbank plc lost 6.74 per cent as 16,200 shares changed hands across six deals for a total value of €16,695.
During this week Go plc was active only on Monday when its share price remained stable at €1.90 on a single deal of 5,000 shares.
On Thursday Santumas was traded for the first time since October, 27. A single trade of 3,000 shares left the share price unchanged at €3.10. The company held its annual general meeting yesterday week when all resolutions were approved. Rene Frendo Randon, chairman of the company explained that the company is well structured and very liquid following the sale of a large parcel of land for €3.2 million net of final withholding tax. The company's interim results for the half year ended October, 30, are due to be issued by December, 31.
The share price of Malta International Airport plc remained stable at €2.24 when just 770 shares were negotiated across two deals. Yesterday Malta International Airport plc published the traffic results for last month. It was stated that there was a decline of 7.9 per cent from 101,559 passengers in November, 2007 to 93,549 passengers last month. During the first 11 months of this year, passenger departures rose by 5.32 per cent, that is, an increase of 75,076 passengers.
As mentioned above the share price of Maltapost plc appreciated by 5.26 per cent as 39,602 shares were negotiated across eight deals.
This article, compiled by Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents thereof should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. 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 please contact JMFS at 67/3 South Street, Valletta, on 2122 4410 or e-mail jmizzi@jmfs.net.