European and American equity indices retreated this week as doubts re-emerged about how quickly the global economy would recover after the publication of bleak worldwide economic data. The CAC 40 in Paris fell 4.32 % on the week, the Xetra Dax in Frankfurt ended down 3.58 % and the FTSE 100 in London was down 2.55%.The Dow Jones Industrial Average (Dow Jones) ended the week down 3.56% , Standard and Poor's 500 (S and P) was down 4.95% while the Nasdaq Composite fell 3.39%.
On the other hand, the Malta Stock Exchange Index ended the week above 3,000 points, a level not breached since early February. The increase in the index gained pace as the week progressed, advancing overall by 2.38% and ending the week at 3018.213 points. During the week, 10 equities were negotiated, with seven closing positive, two negative and one remaining unchanged. The week's best performer was Simonds Farsons Cisk plc (SFC), posting a 6.80% increase, while Crimsonwing plc was the worst, tumbling 16.84%.
The week saw 343 deals registered on the MSE with a turnover of nearly €29.4m. In the equity market there were 171 transactions for a total of slightly over €2.5m, while in the government bond market 60 deals were carried out for a total of €18.3m. There were 94 deals in the corporate bond market for a total of €0.7m while 18 transactions were carried out in the Treasury Bills market for a total of €7.8 million.
Go plc's share price performed well throughout every trade session of this week, posting a final gain of 3.30% to close at €1.755, erasing all of the losses experienced year to date. This equity is now in positive territory, gaining 0.17% following an encouraging uptrend over recent weeks. Such moves were backed by healthy volume levels as nearly 70,000 shares changed hands in 55 deals.
There were 45 deals in Bank of Valletta plc (BoV) shares this week, upping the price by 1.87% and closing at €2.399. This equity, however, moved in a jittery manner with some gains earlier in the week being almost nullified in later sessions. Volume in this share totalled nearly 44,800 shares changing ownership over 45 deals.
HSBC Bank Malta plc's share price over-performed the index and soared by a healthy 4% this week, as a total of 46,840 shares changed hands across 35 trades. This improvement was the result of upward moves in the first three days of trading, with the last two sessions keeping the share price unchanged and closing at €2.60.
Fimbank plc was the most traded equity of the week with 16 deals struck for a total of 2,245,916 shares, at $1.29. This resulted in a minimal week-on-week loss of 0.77%.
International Hotel Investments plc shares moved up another 2.17%, closing the week at €0.94 with a volume of 12,545 shares changing hands in six deals. Thursday saw some gains posted in Monday's session being erased yet volume was generally low.
Malta International Airport plc (MIA) climbed a further 3.33% or €0.07, as 2,047 shares were traded in four transactions. The share price traded from a low of €2.001 to a high of €2.17, where it closed the week.
Shares in Maltapost plc strengthened by 1.43% this week following four deals of 6,000 shares, while RS2 plc shares kept their prices unchanged following two deals of 5,350 shares.
Simonds Farsons Cisk plc shares climbed 6.80% higher, yet this was achieved following minimal volume of 1,450 shares being dealt in three trades.
Crimsonwing plc had a bad week, falling 16.84% from its previous closing price. This occurred over a mere volume of 3,000 shares changing hands in a single deal on Wednesday.
Lombard Bank Malta plc issued an interim directors' statement stating that downward pressure on lending interest rates on one side and a conscious decision to increase retail deposits, contributed to a tighter net interest margin. The statement added that it would not be realistic to expect the same level of record profits realised last year as one off revenue registered last year were not repeated this year.
Capital adequacy and liquidity ratios, however, are strong and prudence continues to be the hallmark of the bank's philosophy. The directors' statement remains cautiously optimistic regarding the bank's performance in the coming months.
Similarly, GlobalCapital plc interim directors' statement mentioned the previous adverse impact on the fair valuations of the group's portfolio of financial investments but noted that it had not materially deteriorated further.
The international and local market instability carried on having a negative impact on demand for the company's life insurance and investment products resulting in a decrease in the company's operating performance.
However, the property, agency and brokerage segments continue to operate profitably. The company has initiated a comprehensive review of its business to identify further process efficiencies and business realignment.
The directors of Middlesea Insurance plc also announced that during the first quarter of 2009, deterioration in the technical performance of the Italian operation and volatility in the capital markets persisted. They also noted that other companies in the group were negatively affected by the turbulence in the financial capital markets.
Medserv plc also issued a directors' statement reporting that the group maintained a satisfactory level of activity despite the significant drop in the price of oil. Moreover, operations are forecasted to be maintained and increased throughout the rest of the year. The board noted that the first quarter results show a profit figure in line with expectations and at a level similar to the same period last year.
This article, which was compiled by Jesmond Mizzi Financial Services Limited (JMFS), does not intend to give investment advice and the contents therein 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 contact JMFS at 67/3, South Street, Valletta, call 2122 4410 or e-mail jmizzi@jmfs.net.