A gloomy mood prevailed on the local stock exchange last week as the negative effects of the previous week's losses spilled over into last week's trading. The Malta Stock Exchange index edged slightly lower every day last week, reaching 3,487.92 by Thursday's session. Friday was the only session in which the index rose, climbing back to 3,492.50. Nevertheless, this slow nearly week-long decline led to an overall loss of 0.88%, with the index approaching the level at which it started the year.
Trading volume was also notably lower than the previous week. A total of 380,000 shares were traded - half of which were concentrated in dealings of Maltapost plc equities. Lack of interest or clarity over local major banks' direction remained tangible, given the subdued volume traded in these stocks. Three equities managed to close last week positively and two remained unchanged notwithstanding the overall grim performance as six other equities recorded a loss, dragging the index down.
Besides being the most widely traded equity of the week, Maltapost plc (MTP) also logged the best performance, climbing a steady 4.6%. A total of 179,064 shares changed hands over 36 deals. Most of these transactions occurred on Tuesday, backing the upward move in the share price from last week's close of €0.765 to €0.80.
Further trading on Wednesday and Friday kept this higher price unchanged. MTP is therefore once again at its highest value for the year. Overall gains for the year stand at just over 14%.
Bank of Valletta plc's share price increased by a minimal €0.001 last week, but intra-week the equity was fairly volatile as conflicting forces battled for direction. The share price fluctuated between a low of €3.261 and a high of €3.32, yet closed nearly unchanged at €3.299. A total of nearly 68,000 shares were traded during all five sessions.
The weekly fall in HSBC Bank Malta plc's share price seems to be gathering momentum. Last week, a total of 30,245 shares were traded, dragging the price down 2.22%. The bulk of trading occurred on Monday, when the share price fell from €3.15 to €3.10. Subsequent minimal trading added to the losses as the price fluctuated around €3.09. The share price closed Friday's session at €3.08.
The discrepancy between the two leading banks' performances has thus widened to more than 11% since the start of the year.
Go plc shares shed a minimal 0.23% last week as the price fell by €0.005 to close at €2.17. A total of 30,745 shares were traded in nine deals. Similarly, International Hotel Investments plc (IHI) closed the week slightly in the red, having dropped from €0.801 to €0.80. Traded volume amounted to 10,072 shares.
Last week, IHI announced its results for the year ended December 31. In 2009, the group registered a net loss of €1.6 million compared to a net profit of €14m in 2008. Revenues fell 19%.
The board of directors said the geographical spread of its hotels enabled the group to limit the impact of the recession. It added that the outlook for the hospitality industry in general is of a slow, gradual recovery which augurs well for the group's activities.
Following last week's hefty losses, Fimbank plc's share price last week rebounded slightly by 1%, rising from $1.07 to $1.08. However, volume was a fraction of the previous week's, with 28,081 shares changing ownership over nine deals.
Despite 12,000 Medserv plc shares and almost 4,000 Simonds Farsons Cisk plc (SFC) shares being traded last week the share prices of both stocks remained unchanged.
Last week, SFC announced the publication of the company's financial statements for the year ended January 31. The group last year registered an operating profit of €4.9m, a notable improvement of €2.5m over the previous financial year's results.
Cost containment and a more effective marketing strategy were among the main factors affecting results. The board of directors remains confident that the group's business model is based on a resilient strategy for continued growth and development. The board is recommending the distribution out of tax-exempt profits of a final net dividend of €0.05 per share.
Middlesea Insurance plc registered a hefty loss of 6%, while 6PM Holdings plc shed 4% on a negligible volume of 2,300 shares. Similarly, minor trading resulted in a weekly loss of 1.6% in Malta International Airport plc shares.
Last week, Grand Harbour Marina plc's board of directors approved the company's financial statements for 2009. The results show a net profit of €0.8m compared to a net loss of €0.4m in 2008, mainly resulting from increased total revenue, excluding berth sales. The board is recommending a dividend of €0.075 to be approved at the AGM to be held on the June 30.
With most yields in Europe ranging from mixed to slightly lower last week, the price of most Malta Government bonds increased slightly. A significant €15m worth of such bonds were traded. Local corporate bond prices were mixed with over €541,000 worth of trading taking place.
Almost €12.5m worth of trading took place in the Treasury Bill market.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed 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 contact JMFS at 67/3, South Street, Valletta, on Tel. 2122 4410 or e-mail jmizzi@jmfs.net.