There are 29 days to go before the introduction of the euro, but only 16 trading days left in 2007. To provide clean-cut Maltese lira trading and settlement days, the Malta Stock Exchange has set December 27 as the last trading day of the year, and settlement therefore to be December 31. This means that Maltese lira trading will be neatly archived without the need to settle in euros what was traded in Maltese lira. The first trading session in euros will be held on January 4.
The stock market gravitated even lower this week, touching near psychological support levels as two index heavyweights touched new lows for 2007. In a week that saw Bank of Valletta plc's (BOV) ratings affirmed by Fitch, the bank's shareholders had to fight back more than a nervous twitch as BOV's share price crashed to a 2007 intra-day low of Lm3.50 on Wednesday. Go plc went decidedly south, touching levels last seen in July 2004, slumping to a Lm1.299 close. The sombre mood was unfortunately contagious, with almost all equities ending the week lower, barring Middlesea Insurance plc's (MSI) glimmer of hope with a 1.2% gain, and GlobalCapital plc's (GCL) 0.9% advance. The MSE index closed the week 0.8% down at 4,807.094, after coming within 16 points of its January 5, 2007, low last Wednesday.
BOV suffered mid-week jitters as the gentle slide from Monday's Lm3.57 to Tuesday's Lm3.55 turned into avalanche; the equity crashed to a 2007 intra-day low of Lm3.50 under the weight of a stream of sale orders for just under 60,000 shares. It closed the day at Lm3.502. It staged a shaky recovery climbing back to Lm3.55 on low volume by Friday, ending the week 0.5% down. BOV, accounted for 51% of the week's total equity turnover by value with 77,791 shares changing hands for a market value of Lm273,120. At the end of the week, total bids for 1,928 shares were at Lm3.502, whereas offers of 2,245 shares started at Lm3.55.
On Thursday, BOV issued an announcement listing the ordinary and special resolutions to be presented for consideration by the AGM on Wednesday December 19.
HSBC Bank Malta plc (HSB) was mainly stable around Lm1.97 on Monday, but slid back gradually to close Thursday's session at the week's low of Lm1.93. It did pick up some lost ground on Friday, albeit on very thin trade, to end the week almost unchanged, just 0.25% lower at Lm1.96. Turnover for the week was a relatively low 33,127 shares for a value of Lm64,620. At the end of trading bids for 3,166 shares were at Lm1.96, while the best offer for 1,500 shares stood at Lm1.969.
It looks like the change of name to Go had the opposite effect on the company's share price which, instead of going up, went to a new 2007 low. After a flat start to the week at Lm1.34, it sagged to Lm1.30 on Wednesday on a 4,000-share fire sale, falling to Lm1.299 on Thursday. This price marked a new 2007, and 40-month, low. Go closed the week at this level, nursing a 3.1% drop. Volume amounted to a rather disinterested 9,836 shares for a value of Lm12,907. At the end of trading, best bids totalled 2,500 shares at Lm1.25 with a supply of 2,530 shares at Lm1.299.
Malta International Airport plc only traded on Wednesday and Friday. It started out lower at Lm1.384 and continued lower to close at Lm1.35, maintaining this price to end the week as the Official List's biggest casualty, down 3.5%. Turnover was low at 8,752 shares for a value of Lm11,853. At the end of Friday's session, the best bid was for 45 shares at Lm1.35, while offers for 1,463 shares started at Lm1.375.
International Hotel Investments plc traded slightly lower, losing a euro cent to end the week 1% lower at €1, on turnover of 73,525 shares for a market value of Lm31,594.
Fimbank plc (FIM) barely made its presence felt with just 1,770 shares changing hands on Monday, 5 US cents lower at $1.70 while Thursday's 630 shares were exchanged at $1.73. This translated into 1.1% drop for the week. On Tuesday, FIM announced that Menafactors Ltd, a joint venture between FIM (50% shareholding) and National Bank of Dubai, was granted a Category 1 licence by the Dubai Financial Services Authority and has commenced operations in the Dubai International Financial Centre.
FIM announced that the rights issue of five new shares for every 19 at US$1.10, closed last Friday, and any rights not taken up are deemed to be lapsed and renounced. FIM has entered into an intermediaries offer with the licensed members of the MSE in relation to the sale of lapsed rights, offers for which must aggregate a minimum of 20,000 shares per broker, at a minimum price of US$1.10. These offers closed on Friday at 12.30 p.m. and will be opened by the registrar at 8.30 a.m. tomorrow.
MSI was one of only two positive performers: it only traded on Thursday starting out at Lm1.66, rising to Lm1.68 on turnover of 2,598 shares to end the week 1.2% up.
GCL started out 3c lower on Tuesday at Lm1.76, recovering to Lm1.795 by the close on fairly hefty volume of 54,000 shares. It only traded again on Wednesday at the same price, to end the week 0.84% higher.
Lombard Bank plc (LOM) first traded on Thursday, slumping 35c to Lm4.75, recovering to Lm5 for the day's second and final deal. A mere 50 shares traded on Friday at the same price for LOM to close the week 2% down.
Simonds Farsons Cisk plc (SFC) only traded once on Wednesday, a cent lower at Lm1.10 on a single trade for 750 shares. On Wednesday, SFC issued an interim directors' statement, stating that for the first nine months to October 31 the group registered an increase in turnover levels over the corresponding period last year, predominantly in its brewing, production and sale of branded beers and beverages segment. The directors expect, subject to any unforeseen circumstances, that the performance for the current year will show a significant improvement over 2007.
Medserv plc traded at Lm1.75 on Wednesday, slipped to Lm1.736 on Thursday, but regained the former price on Friday to close the week unchanged on turnover of 12,700 shares for a value of Lm22,189. 6PM plc hit a new high of 74p on one deal of just 300 shares on Monday, but lost a penny to close at 73p on Thursday, ending the week unchanged.
In the Government Bond market, turnover by value reached Lm485,050 with 50 deals struck in 17 stocks. In the corporate bond market there were 41 deals for a total turnover value of Lm87,818. Turnover value in the Treasury Bill market totalled Lm1.37 million.
This report was provided by Financial Planning Services Limited, of Marina Court, G. Cali Street, Ta' Xbiex, 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. e-mail: info@bonellofinancial.com or tel: 2134 4243.