Cap categories and the sound of silence

In the U.K. there are specific criteria that regulate the categorisation of large, medium and small capitalisation stocks. The Official List of the Malta Stock Exchange is made up of 13 listed companies. Of these, Suncrest Hotels plc (SCR) shares are suspended.

Shareholders were, last month, offered the option of either a cash payment or the conversion of their shares into the new 4% bond, maturing at a 40% premium in 2013. This bond was issued and guaranteed by AX Investments plc.

An announcement issued by SCR on December 20 confirmed that 92% of the shares had either been exchanged for cash or for the AX Investments plc bond issue. When the outstanding 8% reach a settlement option, SCR shares will be delisted.

In broad terms, of the remaining 12 active MSE listed securities, the large caps are: HSBC Bank Malta plc (HSB), Bank of Valletta plc (BOV) and Maltacom plc (MLC), whose collective market capitalisation makes up 77% of the total Lm1,523,117,126.

The five mid-cap stocks are: International Hotels Investments plc (IHI), Malta International Airport plc (MIA), Middlesea Insurance plc (MSI), FIMBank plc (FIM) and Lombard Bank plc (LOM), collectively accounting for 18.3% of the total.

This leaves four active small caps, which between them make up the remaining 4.6% of the total: GlobalCapital plc (GCL), Simonds Farsons Cisk plc (SFC), Medserv plc (MDS) and Plaza Centres plc (PZC).

The only equity on the Alternative Companies' List, Datatrak plc (DTK), at its 24c5 close on Friday, has a market cap of Lm3.9 million, while Closed Ended Investment Scheme Santumas Shareholdings plc has by far the lowest market cap of Lm1,914,952.

In a week the soundtrack for which could easily have been Simon and Garfunkel's The Sound of Silence, fitful trading was the order of the day with traders' screens only lighting up spasmodically.

Equity turnover by value came in even lower than last week's at Lm247,524 - the lowest for the first four weeks of 2007, and the second lowest for 2006/2007. While the big banks did not move, MLC scored a welcome 2.1% increase to Lm1.48 and IHI continued to rise, advancing to all-time closing high of €1.099.

On the other hand, MIA ended the week 1.1% lower at Lm1.385. The MSE index ended the week 0.385% up at 5,088.807.

BOV started the week practically where it had left off, opening at Lm3.671, continuing at Lm3.67 for the rest of the session and closing 1c higher at Lm3.68. Tuesday's 5,377 shares were negotiated almost equally between Lm3.67 and Lm3.68.

Only two deals were struck on Wednesday, one at Lm3.68, the other at Lm3.66 on a turnover of only 1,280 shares. Another two deals - totalling 575 shares! - were negotiated on Thursday, one at Lm3.67 and the other at Lm3.68.

All of Friday's trade was struck at Lm3.68 to close the week a minuscule 0.3% ahead. Turnover for the week amounted to 18,167 shares for a market value of Lm66,769. At the end of trading, best bids totalled 1,900 shares at Lm3.65, and supply of 2,292 shares started at Lm3.68.

HSB was static at Lm2.11 throughout all of Monday's trading. During Tuesday's slow session only 3,270 shares were traded, with the price slipping in minute fractions to close at Lm2.10 - a price maintained during Wednesday's session.

Thursday's sporadic dealing saw HSB close at Lm2.105. All of Friday's deals went through at Lm2.11, with the exception of the final one, at Lm2.109 for HSB to end the week an irrelevant 0.05% lower.

The total volume for five days was only 34,735 shares for a value of Lm73,197. At the end of trading, the best bid was for 200 shares at Lm2.09, and the best offer for 1,000 shares stood at Lm2.109.

MLC enjoyed a positive week, gaining a healthy 2.1%, possibly in sync with the sealing of the Smart City deal. Monday saw MLC open at Lm1.45 and close at Lm1.47, albeit on low turnover.

Low turnover also characterised Tuesday's and Wednesday's trading (2,650 shares and 308, respectively) during which the Lm1.47 level was maintained. Thursday saw MLC inch up another cent to Lm1.48, which was also the price for all of Friday's deals.

MLC's turnover of 25,064 shares represented a turnover value of Lm36,886. At the end of the session, the best bid was for 200 shares at Lm1.46 and the best offer for 1,848 shares at Lm1.49.

After last week's total trading silence, this week MIA traded every day except Tuesday. It started on Monday just a shade lower at Lm1.399, closing at Lm1.398. It slipped further to Lm1.385 on Wednesday, closing at Lm1.38 on Thursday.

It was back at Lm1.385 for Friday's only deal of 2,900 shares to end the week 1.1% down. Total turnover for the week amounted to 10,257 shares for a market value of Lm14,262. At the end of the session, best bids were for 2,000 shares at Lm1.37 and offers for 1,350 shares started at Lm1.379.

MSI opened the week at Lm2.05, slipped to Lm2.04 mid-week and was back at Lm2.05 on Friday to end the week unchanged. Turnover consisted of just 3,232 shares for a value of Lm6,624.

IHI was stable at €1.07 from Monday to Thursday. On Friday it advanced, deal by deal, from E1.085 to E1.09 and on to €1.099 - an all-time closing peak. This made IHI the week's best performer with a gain of 2.7%.

The other two mid-cap stocks, FIM and LOM, did not trade. On Friday LOM announced that Stefano Loffredi was appointed to the board of directors with effect from January 4.

In small cap stocks, SFC was only active on Monday, advancing 2c, or 2.5%, to 82c on turnover of 11,540 shares. MDS moved up to Lm1.365 on Tuesday and gained another 5 mils to Lm1.37 on Wednesday - a rise of 0.74% for the week. PZC eased back 0.6% to 70c1 over the week's only two deals on Thursday.

DTK was stable at 25c on Thursday, but fell to a new 2006/7 low of 24c5 with the final deal, for just 79 shares, struck at this price on Friday.

In the Government bond market 48 deals were completed for a turnover by value of Lm1,075,087. The most active stock was the 7.35% MGS 2007 (I), with a total turnover value of Lm930,368 - 86% of the week's total.

In the corporate bond market turnover by value reached Lm56,675, spread over 31 deals.

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