Happy days are here again?
This week saw the first full week of trading, not only for 2007, but also since the last full week before Christmas. HSBC Bank Malta plc (HSB) came out firing on all cylinders to close a spectacular week 15.7 per cent ahead at Lm2.14 - and this after having closed on Thursday 5c higher at Lm2.19, and touching an intra-day high of Lm2.20 yesterday.
In one fell swoop HSB recouped the ground it had lost in the last four-and-a-half months (since August 31, 2006), and in the process put the Malta Stock Exchange Index into orbit with a very rare, much needed, seven per cent increase for the week.
The writing was on the wall from Monday's session when HSB opened at Lm1.85,9 and, after touching an intra-day high of Lm1.97, closed at Lm1.96 - up six per cent for the day. The pyrotechnic performance proceeded on Tuesday as HSB shot to the top of the allowable trade range at Lm2.07,2. Although it closed 2 mils lower, it was still another 5.6 per cent increase for the day.
As investors stopped for a breather on Wednesday HSB still gained a further 1.4 per cent to Lm2.10, with the fireworks continuing on Thursday as HSB added a colourful 4.3 per cent to close at Lm2.19. Yesterday HSB peaked at an intra-day high of Lm2.20, at which point profit taking set in pushing down the price to Lm2.14 - 2.3 per cent lower on the day. The week's volume in HSB - 206,446 shares for a turnover of Lm425,814 - accounted 56 per cent of equity turnover by value of Lm759,621. At the end of trading, the best bid was for 1,000 shares at Lm2.13, while the best offers for 851 shares stood at Lm2.14.
HSB, in a company announcement on Wednesday, stated that it had published the Prospectus in respect of a new 10-year bond. This bond issue is for Lm20 million or €46.6 million, at 4.6 per cent in either currency, at par. The over-allotment option will not exceed, in aggregate, Lm5 million or €11.7 million in value in any one or a combination of the bonds. Application has been made to the Listing Authority for the admissibility of the bonds to listing, and to the Malta Stock Exchange for the bonds to be listed on its official list and traded on the Exchange.
Bank of Valletta plc (BOV) started Monday unchanged at Lm3.60. Tuesday's two sole deals totalling 1,085 shares, pushed the price up 1c. BOV pick up speed on Wednesday, rising from Lm3.61 to Lm3.67 in the final deal. The positive vibes spread to Thursday when BOV climbed a further 2c5 to Lm3.69,5, and continued yesterday as it traded and closed at Lm3.70. This translated into a 2.8 per cent gain on the week, on a turnover of 55,146 shares for a market value of just under Lm200,000. At the end of trading best bids totalled 4,069 shares at Lm3.67, while supply of 396 shares started at Lm3.70.
Maltacom plc (MLC) did not trade on Monday and only saw activity of a mere 500 shares on Tuesday at Lm1.45. In a busier session on Wednesday MLC advanced to a high of Lm1.49, then closing 5 mils lower at Lm1.48,5. These gains were erased on Thursday as the final deal was struck at Lm1.45,1, while yesterday's two trades at Lm1.45,5 saw MLC close the week practically unchanged. The week's trading consisted of 10,552 shares for a value of Lm15,47,8. At the end of the session, the best bid was for 108 shares at Lm1.47,1 and the best offer for 1,500 shares at Lm1.48.
Malta International Airport plc's (MIA) close of Lm1.40 yesterday was last seen three-and-a-half months ago. Total turnover for the week was a very healthy 44,807 shares for a market value of Lm62,487 with the price up 1.45 per cent. From a Lm1.375 open, it closed at Lm1.39 on Monday, advancing to Lm1.40 on Tuesday, retaining this level on Wednesday. Yesterday it started at Lm1.40, slipped to Lm1.38 to then recover to Lm1.40 in the last trade. At the end of the session, best bids were for 4,829 shares at Lm1.38, while offers totalled a substantial 20,750 shares at Lm1.40.
Lombard Bank plc (LOM) made up for part of last week's nine per cent drop with a 2.9 per cent increase. It started at Lm5.25 on Monday, advanced to Lm5.30 on Wednesday, picked up another 5c to Lm5.35 on Thursday and a further 5c yesterday to close the week at Lm5.40. Fimbank plc (FIM) only traded once - on Thursday when 3,000 shares changed hands at $1.73. On Tuesday FIM announced that Kuwaiti Interests for Financial Investments, K.S.C.C., one of its qualifying shareholders, has changed its name to Massaleh Investments K.S.C.C.
International Hotels Investments plc was only active on Monday, stable at €1.00 and yesterday when 10,000 shares traded at €1.02, pushing the price up 2.5 per cent.
GlobalCapital plc's first trade for 2007 was struck on Tuesday at Lm2.17, 3c below the 2006 closing price. Wednesday's first trade saw the price slump to Lm2.10, but then recover to a Lm2.19,9 close. Simonds Farsons Cisk plc only traded on Tuesday, unchanged at 80c.
The Government Bond Market was significantly busier this week with 84 deals for a turnover by value of Lm1,194,532. In the corporate bond market turnover by value reached Lm149,383 spread over 29 deals.
Report by Financial Planning Services Limited, tel. 2134 4244, fax. 2134 1202, e-mail: info@bonellofinancial.com
Financial Planning Services Limited is licensed by the MFSA to provide investment services, including stockbroking (IS/3608). The directors or related parties, including the company, and their clients, are likely to have an interest in securities mentioned. This article is only meant to provide information and is not intended to give investment advice. The value of securities, and the currencies in which they are denominated, may go down as well as up.