Monthly Round up report for 29 January 2010



Positive outlook surrounded the local equity market during the first three trading weeks of January, while closing the last week in decline as a negative five-day streak was recorded. The Malta Stock Exchange Index reached a monthly high of 3,956.286 points in the second half of the month, but declined gradually from then onwards. Despite this persistent decline the Index still managed a gain of 0.76 per cent when compared to December of the past year.

Total number of transactions recorded on the MSE in January amounted to 1,937 and the total value of deals negotiated reached nearly EUR40m with Treasury Bills representing half this value, EUR11m was traded in Malta Government Stocks, while EUR3.6m was transacted in the Corporate Bond market. In fact, the month under review, proved to be a very busy month for the equity market as turnover totalled EUR4.7m across 1,354 deals. Volume of shares traded amounted to 2,216,489 shares, a level last surpassed in May last year.

Bank of Valletta plc (BOV) was the most active equity of the month as 419 deals were executed. The Bank also recorded the largest volume of shares traded as over 450,000 shares were negotiated. BOV reached a monthly high of EUR4.10 in the initial sessions of the month, as investors rallied to acquire this equity in order to be eligible for the bonus share issue. Hence, on 13 January 2010, the share price adjusted to EUR3.28 thus adjusting to the bonus issue. From then on, the equity managed a number of respectable gains, with EUR3.76 being the highest traded price but failed to maintain ground as the equity tumbled to EUR3.40 affected mainly by negative sentiment in the banking industry across the world. However, on the month the equity was up 9.82 per cent in positive.

HSBC Bank Malta plc managed an overwhelming gain of 20.74 per cent over the month as the equity closed at EUR3.90, having traded at a monthly high of EUR4.05, and a monthly low of EUR3.23, the price at which the equity closed the previous year. A total of 333,895 shares changed hands across 324 transactions for a total value of over EUR1.2m.

Meanwhile, Middlesea Insurance plc ended the first month in positive territory, after having tumbled in 2009. Investors’ mixed feelings were transmitted in the equity’s price as the share price fluctuated from a low of EUR0.68 and a high of EUR1. The insurance firm was the second most liquid as 433,909 shares were traded over 190 deals. Over the month, the equity’s performance stood at 6.84 per cent.

In the financial sector, GlobalCapital plc recorded a hefty gain of nearly 40 per cent on thin volume, as 15,300 shares were traded across 17 transactions. The equity managed to end the month with no losses, as the price soared from a low of EUR1.35 to a monthly high of EUR1.887. Similarly, FIMBank plc and Lombard Bank plc closed the month in positive territory. The former gained 7.27 per cent or EUR0.08 over 41 deals of 127,056 shares, while Lombard Bank plc closed up 4.31 per cent or EUR0.129 on the month.

The share price of Malta International Airport plc also headed northwards after the equity ending almost all sessions during which it was active in positive territory. Across the month 45 deals of just over 33,000 shares were executed. MIA opened the year at EUR2.40 and managed an impressive gain of 28.75 per cent as it ended the month at EUR3.09.

Investors’ preference towards Maltapost plc increased as over 190,000 shares were traded across 60 deals. The share price of the postal operator closed 14.14 per cent or EUR0.099 up in January, as the equity closed the month at EUR0.799. Likewise GO plc ended the first month of the year in positive territory, having gained 8.57 per cent. The equity was one of the most heavily traded with over 327,000 shares changing hands across 159 transactions.

Similarly, demand for IHI shares increased from nearly 69,000 in December 2009 to 137,068 throughout January. However, the equity’s price declined slightly to EUR0.78, a loss of 2.50 per cent or EUR0.02, hence edging lower on the month. Similarly, the share price of Grand Harbour Marina plc closed over four per cent down across four transactions of 16,500 shares. The equity was active only during the closing week of the month, after a week earlier the company announced a EUR10m bond issue at a coupon rate of seven per cent to be redeemed between 25 February of 2017 and 2020.



This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Services Limited (JMFS), does not intend to give investment advice and the contents therein should not be construed as such.