The Malta Stock Exchange index fell by a slight 0.23% last week to end Friday’s session at 3,340.478 points. The local index remains totally disconnected from most global indices, which rose again last week, albeit in a somewhat moderate manner.
The local index has been generally flat over the past weeks, indicating that sellers have run out of steam following a continuous downward trend started in early August. In other words, buyers and sellers are now equally strong in their fight for direction.
Last week, the volume of share trading fell considerably compared to the previous week, yet remains acceptable overall considering the average trading volume at this time of year.
The two large banks made up for just over a third of traded volume, and much more than half of the total traded value. The shares of five of the 13 companies traded last week actually rose in value; however, the market capitalisation of the four companies whose shares fell in value was enough to drag the overall index lower.
Bank of Valletta plc was among the few equities whose share price remained flat compated to the previous week. BoV shares were also the most widely traded, with just over 57,500 shares changing hands last week. Notwithstanding the price closing unchanged at €3.24, BoV’s share price dropped to a weekly low of €3.203 in Tuesday’s session on light volume. The lower price encouraged buyers to step in and gradually push the share price back to €3.24 at which it closed on Friday. The upswing also followed a company announcement on Tuesday stating that the board of directors is scheduled to meet on Friday to consider and approve the group’s and the bank’s audited financial statements for the financial year ended September 30 and consider the declaration of a final dividend.
Trading in HSBC Bank Malta plc was slightly more erratic. The share price was generally muddled yet mostly tending towards the downside with little effort from buyers to bid the price upwards. The week ended negatively for HSBC shares, losing a further 1% to close Friday’s session at €2.77, even reaching a year-to-date low of €2.75 in Wednesday’s session. This gradual decline has placed HSBC as the second worst performer so far this year, having lost just over 14% since January.
Trading in Crimsonwing plc equities last week was unusually high, with nearly 40,000 shares exchanged in three market sessions. The share price was very volatile, initially plunging 16.7% on Wednesday, with subsequent trading on Friday nearly halving the loss to ‘only’ 9.5% compared to the previous week. These large fluctuations came about following the company announcement issued on Wednesday detailing the outcome of a resolution proposed at the annual general meeting held the previous day.
A total of 37,500 International Hotel Investments plc shares were traded last week. However, the stock’s price remained intact yet again, trading continuously at the psychologically firm level of €0.80. This price, which was also last year’s closing price, has continuously acted as a ‘floor’, or a strong resistance level throughout most of this year.
Go plc’s share price performed well last week, with a moderate yet steady climb. By Friday, it had risen 1.6% to end the week at €1.87. Volume was also encouraging, as nearly 37,000 shares transacted over 13 deals.
Similarly, following weeks of generally downbeat share price movements, Malta International Airport plc shares saw a 2.7% improvement this week. The share price rose to €1.60, quickly erasing the slow, gradual declines over the past weeks. Volume was moderate, totalling just over 26,000 shares.
Although trading volume in Maltapost plc was very low, the price of its shares ended the week 2.2% higher at €0.92, therefore breaking the €0.90 level for the first time and thus reaching a new high this year.
Conversely, Lombard Bank plc’s share price plummeted last week, falling by 3.7% to reach a year-to-date low of €2.60. Trading in this stock remains very low, but it is sustaining a strong downward trend which started at the beginning of the year. Overall, this stock has already lost well over 13% during the past 10 months.
Similarly, low volumes brought about losses for Simonds Farsons Cisk plc, with the share price dropping to €1.72 or 1.7% lower.
Low traded volumes kept Fimbank plc and Middlesea Insurance plc unchanged last week, while Grand Harbour Marina plc and Plaza Centres plc were upped by 1.02% and 0.89% respectively. Fimbank announced last week that India Factoring and Finance Solutions Private Ltd of Mumbai India, of which Fimbank is a 49% shareholder, has been issued with a Certificate of Registration from the Reserve Bank of India, enabling this company to offer a full range of factoring and trade finance services to the domestic market.
Nearly €650,000 worth of local corporate bonds was traded last week, with very minimal changes in prices. On the other hand there were further steep falls in Malta Government Stock prices, particularly as benchmark yields abroad continued to climb.
Last week, PG Finance plc (formerly Big Bon Finance plc) announced that the issuer has resolved to redeem the PG Finance plc 7% Secured Bonds 2010-2012 in full on the first optional redemption date, which falls due on December 20. The last date of trading shall be November 30.
Meanwhile, Midi plc announced that by means of a unanimously approved extraordinary resolution, the company detailed the changes to its new memorandum and articles of association.
Total trading in Treasury bills last week nearly hit the €5.8 million mark.
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.