MSE Weekly Round-Up Report: 28th May – 1st June 2007

–

MSE Index reaches this year’s initial level

–

The local bourse edged 0.55% higher during the week to reach the level at which it commenced this year. A total of eight equities were active, three of which moved into positive territory while two others closed in negative terrain. The three local large caps — HBSC Bank Malta (HSBC), Bank of Valletta (BOV) and Maltacom — were the most active accounting for eighty percent of the transactions on the regular equity market.

– 

From a total of 289 transactions executed on the Malta Stock Exchange during the week, 152 were performed in equities for a value of Lm323,541 while 134 transactions were executed in local corporate bonds and Malta Government Stocks for a turnover of Lm2.4 million. In addition, three transactions were executed in two Treasury Bills for a nominal value of Lm16,000.

–

For a second consecutive week, Simonds Farsons Cisk was the top equity performer on a week-on-week basis. The equity climbed a further 3.3% as it gained 3c throughout the week to close at Lm0.93. This was attained over six transactions with the volume traded standing at 17,275 shares.

– 

International Hotel Investments also closed in positive territory after it gained EUR0.02 on Tuesday and a further EUR0.01 in Wednesday’s session, to close the week 2.7% higher at EUR1.16. Volume traded was close to 20,000 shares, these being transacted across eight deals.

–

The other equity to post a gain on a weekly basis was that of HSBC. It was the most actively traded equity of the week, having nearly 71,000 shares change hands across fifty deals.  Its share price moved 1c higher on Monday, gained 1c8 on Tuesday, lost 0c8 on Wednesday, dropped 1c9 on Thursday, to add 2c8 in Friday’s session and close 1.5% higher at Lm1.929.

–

Within the same sector, BOV shed 0.55% to close at the Lm3.60 level. The equity started the week with a 2c5 rise reaching Lm3.645, however, over the last two sessions of the week the equity dropped 4c5 to close in negative territory.

–

Maltacom also closed lower on a weekly basis as its share price declined by 0.8%. A total of 36,688 shares were transacted across thirty-two deals, to drop 1c1 and close at Lm1.439. During the week, the Board of Directors of Maltacom approved the resolutions of its ninth annual general meeting and also elected as well as appointed the directors.

–

Moreover, Malta International Airport had a total of 7,800 shares change hands across ten deals however its share price closed the week unchanged at Lm1.38. Similarly, Medserv was also active and closed the week stable. In fact, 13,850 shares were traded across five deals at the price of Lm1.60, maintaining last week’s closing price. Two mere transactions totalling 571 shares were also executed in GlobalCapital, however even in this case the equity closed unchanged at  Lm1.80.

–

Turning onto the bond sector, thirteen local corporate bonds were active. The value traded in these bonds amounted to Lm76,144 as twenty-seven trades were executed. With regards to Malta Government Stocks (MGS), the turnover was over the Lm2.35 mark with twenty-two different MGSs being traded. The majority of these government stocks registered a decline in price, spurred by the fact that on Tuesday, the Central Bank of Malta raised the central intervention rate by 25 basis points to 4.25%. This raise came into effect from Wednesday, 30 May 2007.

–

At the end of the Monetary Policy Advisory Council meeting, the Governor considered that against the background of a further narrowing of interest rate differentials and reductions in the external reserves, the prevailing central intervention rate no longer provided adequate support to the exchange rate. The Monetary Policy Advisory Council is due to meet again on 28 June 2007. 

– 

This article which was compiled by Jesmond Mizzi Financial Services Limited (JMFS) does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information please contact JFMS at 67/3 South Street Valletta or on tel:  21224410 or email [email protected]