Any ideas we expressed last week about the world's markets turning bearish while Malta's veered to bull - though obviously not intended for one-week wonders - proved particularly correct in the Far East. China collapsed a full 8%, while Japan and Hong Kong both shed over 5.5% each. In the US, the tech-laden Nasdaq joined the rout with a 3.5% plunge, substantially more than the Dow Jones' 2.2% dive. In Europe, the UK's FTSE 100 suffered the biggest decline at 3.5%, followed by France's Cac 40 down 2.8%.
However, we were completely off track about Malta, where the MSE Index, which only seems to follow worldwide trends when these are in negative mode, slipped a more contained 1%, closing the week at 4,886.56. The performance was matched with a lacklustre turnover, which, from the previous week's third best of the year, subsided a full 75% to Lm238,665 - the year's fourth lowest week.
The only equity to end in positive territory was Middlesea Insurance plc (MSI) up a yawning 0.6% reflecting a one-cent gain on the week. At least, it was off its recent lows, trading at Lm1.60 on Tuesday but slipping to Lm1.57 by Wednesday's close. Turnover of 2,689 shares reflected a market value of all of Lm4,279.
An interim directors' statement issued by MSI on Friday announced that it has registered a positive overall result from its operations in Malta and Italy. However, the high volatility of the international markets registered during the third quarter of 2007 impacted negatively on the group's growth in profits during the period.
As expected, Bank of Valletta plc (BOV) started the week lower, as it traded XD. It was down 8c (the large bulk of the after tax value of the 13c5 final gross dividend) to Lm3.60. It traded minimally below this level from Monday to Wednesday, when it closed at Lm3.595. BOV shed a further 4c5 on Thursday closing at Lm3.55, recovering to a Lm3.584 by Friday's close, for a week on week fall of 2.6%. Total equity turnover by value, with 24,218 shares changing hands, reached Lm87,030. At the end of the week, total bids for 1,890 shares were at Lm3.55, whereas offers of just 1,450 shares started at Lm3.587.
Market cap leader, HSBC Bank Malta plc kept an even footing on Monday, trading around the Lm1.98 mark. It continued in this vein on Tuesday, closing at Lm1.984, to then drop slightly closing at Lm1.979 on Wednesday and Thursday. After hitting an intra-day low of Lm1.95 on Friday, it closed at Lm1.97, to end the week 0.5% lower. Turnover for the week totalled 51,298 shares for a value of Lm101,425, accounting for 42% of the week's total equity turnover by value. At the end of trading, bids for 4,600 shares were at Lm1.92, while the best offer for 2,000 shares stood at Lm1.969.
Maltacom plc (MLC) opened the week lower down to Lm1.38 on low volume. It slipped to a 2007 low of Lm1.37 - previously hit on October 3 - by the end of Tuesday, retaining this price on Wednesday. It regained the 1c by Thursday's close and for Friday's sole deal, to close the week 1.43% down. Turnover totalled 6,348 shares for a value of Lm8,764. At the end of trading, best bids totalled 6,290 shares at Lm1.370 with a supply of 4,102 shares at Lm1.38.
In an interim directors' statement issued on Wednesday, MLC announced that, based on unaudited management accounts up to September 30, results are in line with projections which reflect the competitive developments experienced in the local market. Profitability remains strong although at a level below that of the comparative period last year.
Malta International Airport plc opened Monday at Lm1.40, closing at Lm1.41 on thin turnover. It eased back to Lm1.40 on Wednesday, retaining this price for the rest of the week to close unchanged. Turnover totalled 4,400 shares for a value of Lm6,165. At the end of Friday's session, bids started at 1,758 shares at Lm1.40, while offers for 19,470 shares stood at Lm1.41.
On Thursday, MIA announced that Peter Bolech will be retiring from his post as CEO and executive director with effect from December 31. He will be replaced by Julian Jaeger, who currently serves as a company executive director.
Fimbank plc (FIM) only traded on Tuesday and Friday, with the price minimally lower at $1.799, as a total of 10,595 shares were traded, for a value of Lm5,595.
FIM issued an interim directors statement on Thursday, announcing that subject to unforeseen negative events or developments, the directors expect the group's operating performance for 2007 to show a strong improvement over last year's and the improvement should be reflected in the financial year end results.
On Friday, FIM announced that the prospectus dated November 1, in respect of the Rights Issue of five new shares for every 19 held - offered at US$1.10 per share - was published. This, with the accompanying documents, was dispatched to shareholders on the books on October 26. The Rights Issue will open at 8.30 a.m. on Monday, November 19, and close at 12.30 p.m. on November 30.
Lombard Bank plc was down 18c9 to Lm5.30 on a 200-share deal last Wednesday - a 3.44% drop for the week. Simonds Farsons Cisk plc was stable at Lm1.10 trading only on Monday and Tuesday, as a total of 18,731 shares changed hands.
Grand Harbour Marina plc only traded on Friday shedding 4% to 74c9 on a 5,000-share deal.
On Wednesday, Santumas Shareholdings plc (STUM) announced that at a meeting held the previous day, the board resolved to distribute, out of tax-exempt profits, a final dividend of two cents per share to shareholders on the register on November 19, i.e. investors who will have bought STUM shares by next Wednesday. STUM did not trade last week.
In the Government Bond market, turnover by value reached Lm510,247 with 53 deals struck in 18 stocks. In the corporate bond market there were 39 deals for a total turnover value of Lm107,018. Turnover value in the Treasury Bill market totalled Lm174,763.
This report was provided by Financial Planning Services Limited which is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). The company is involved in acting as sponsoring stockbroker and corporate stockbroker. The directors or related parties, including the company, and their clients, are likely to have an interest in securities mentioned.