Banks drag MSE index down

This week the Malta Stock Exchange Index closed at 2,969.834 points, a drop of 2.53%. During the week, 11 equities were negotiated, with one closing in positive territory, eight closing in negative territory and two remaining stable.  Fimbank plc was the best performer of the week as its share price appreciated by 1.70% and closed at $1.495.  On the other hand HSBC Bank Malta plc lost most ground as its share price dropped by 5.81% and closed at Eur2.45.

During the week 268 deals were registered on the stock exchange for a turnover of over Eur5.1m.  In the equity market 128 transactions were carried out for a total value of Eur507,293.  In the corporate bond market 81 transactions for a total value of Eur863,924 were executed. While in the government bond market 42 transactions were executed for a value of over Eur1.14m.  Sixteen transactions were carried out in the Treasury Bills market for a value of over Eur2.67m.    

On Monday the Central Bank of Malta Stockbroker slightly revised its Malta Government Stock bid prices with only two government stocks active during the day. On the other hand a number of corporate bonds were traded.  On Wednesday the Central Bank of Malta Stockbroker raised its Malta Government Stock bid prices as eurozone yields dropped to the 3.30% level.  Various government and corporate stocks were negotiated during the day.  On Thursday the Central Bank of Malta Stockbroker continued to raise its Malta Government Stock bid prices as eurozone yields sharply dropped to the 3.15% level. Although only a few government bonds were active a number of corporate bonds were traded.  On Friday a number of government and corporate stocks were negotiated most of which closing in positive territory.

On Monday the share price of Bank of Valletta plc (BOV) dropped by 1.60% to Eur2.46, the lowest price in five years, as 14,850 shares were negotiated across nine transactions. Following Tuesday’s public holiday on Wednesday the share price of BOV recovered some of its losses and increased by 0.85% to Eur.481 as 5,900 shares were negotiated across eight deals.   On Thursday BOV was the most active as 16 deals were executed for a total volume of 33,106 shares.  This led to a drop of 1.25% in the share price which closed at a new five-year low of Eur2.45.  Bank of Valletta was the only equity which changed in value as its share price dropped by 0.41% to Eur2.44 as 8,640 shares were negotiated across seven deals, at new lows for five years.  Over the week BOV fell by 2.40%.

On Monday HSBC Bank Malta plc lost ground as its share price dropped by 3.88% to a new 49-month low of Eur2.50 as 20,620 shares were negotiated across 20 deals.  HSBC shareholders are waiting for the publication of the Bank’s 2008 full-year results due on February, 20. On Wednesday HSBC gained some territory as its share price increased by 1.20% to Eur2.53 as 11 deals were executed for a total volume of 11,955 shares. On Thursday HSBC lost most territory among the traded equities as its share price dropped buy 3.16% to a new 49-month low of Eur2.45 as 13,265 shares were negotiated across ten deals.  Although 2,100 shares were negotiated on Friday the share price remained stable. 

On Monday Lombard Bank Malta plc dropped in value as its share price lost 3.77% to the lowest in three years at Eur2.55 as four deals were executed for a total volume of 5,100 shares. On Wednesday Lombard was the best performer as its share price gained 1.96% to Eur2.60 when 6,000 shares were negotiated across three deals.

On Monday Fimbank plc was the only positive performer as its share price increased by 2.04% to $1.50 on a single deal of just 1,267 shares. On Thursday the share price of Fimbank dropped by 0.33% to $1.495 when 20,900 shares were negotiated across four deals.  A single deal on Friday left the share price of Fimbank unchanged.

Datatrak Holdings plc was negotiated for the first time this year on Monday; however the share price remained stable at Eur0.19 as 2,000 shares changed hands across two deals.

On Monday the share price of Go plc dropped by 2.80% to an all-time low of Eur1.70 as 20,700 shares were negotiated across ten deals.

A single deal of 1,000 shares left Plaza Centres plc losing most territory on Monday as its share price dropped by 4.76% to Eur1.60. On Thursday Plaza was the only positive performer of the day as its share price increased by 5.00% to Eur1.68 when 25,800 shares were negotiated across six transactions.  In this way Plaza remained stable over the previous week.

Malta International Airport plc was negotiated on Wednesday and its share price dropped by 1.96% to Eur2.45 on a single deal of 5,000 shares. This in reaction to January’s traffic results which showed an 11.8% decline in passenger movements compared to the same month last year. On Thursday MIA announced that it will be issuing its 2008 results on March, 12. The share price of the Company dropped by a further 0.86% to Eur2.429 as 30,000 shares changed hands across four deals.  During this week 35,000 shares were traded across five transactions leading to a drop of 2.80% in the share price.

A single deal of just 1,000 shares left Maltapost plc as the worst performer on Wednesday as its share price dropped by 3.66% to Eur0.79.   The postal operator is expected to hold its Annual General Meeting on Tuesday 17 February.

RS2 Software plc was negotiated for the second time this year on Thursday and its share price dropped by 1.25% to Eur0.789 as 10,000 shares were negotiated across three deals.

Simonds Farsons Cisk plc was negotiated on Thursday with its share price dropping by 0.05% to Eur1.90 when just 200 shares were negotiated across two deals.

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 contact JMFS at 67/3, South Street, Valletta or on Tel: 21224410 or email [email protected]