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Trading in equities listed on the Malta Stock Exchange during the past week was influenced by a string of company announcements and other market expectations.
Middlesea Insurance dominated the news as the company issued positive interim financial results and then saw a change in its own shareholders base. Although initially the market failed to respond to the 39.7% increase in pre-tax profits to Lm2.1 million, subsequent coverage in local newspapers was well received and the share price rallied by 3.2% to close at Lm3.20c.
Furthermore during the final session of the week, a special trade was executed where the Government of Malta sold 896,584 shares representing 7.17% of the issued share capital to Munchener Ruckversicherungs-Gesellschaft at the Lm3.00c level.
Maltacom shares had a lackluster beginning to the week, but all that changed during Friday’s session on news that the Government had “short listed a number of bidders” for its 60 per cent shareholding, which was followed by the announced that Maltacom had appointed Rothschild Spa as an adviser. Investors cheered the over due announcement by buying the equity all the way up to Lm1.55c.
Malta International Airport announced on Tuesday that the government had priced its second offering of shares, which equates to a 20 per cent shareholding in the company, at the previous sessions’ closing level of Lm1.40c. Although, the offer price was at the higher end of expectations, subsequent activity in the open market saw that level being sustained and shares mopped up.
Overall, the news hitting the market was deemed to be positive and the market responded by moving higher. In the banking sector, FIMBank was the biggest gainer chalking up an encouraging 9.3% increase as buying activity returned to the equity. Lombard Bank spiked 3% to close at a new record high of Lm6.85c on sustained demand and the usual lack of supply.
Larger banks had a more discreet week. Prima face, Bank of Valletta shares gained only 0.2% during the week, but in reality supply at the major resistance level of Lm5.50c was cleared out by robust buying activity. A break-through might be possible ahead of the company’s full year results due out in a month’s time.
HSBC Bank Malta had the dubious honour of being the biggest losers and the price declined 2.3% on profit taking. Global Financial Services Group too weakened as buyers purchased shares at a lower offer price than the previous closing level.
On the contrary, Datatrak Holdings, listed on the Alternative Investments List, gained an impressive 10.7% as low volume buying activity helped the price move higher to terminate at Lm0.31c.
This article was compiled by BOV Stockbrokers ltd, a member of the BOV Group. BOVSL’s offices are situated at 106, St John Square, Valletta VLT 10. You can also contact BOVSL by email at bovsl@bov.com, by phoning on 21227370/1/4 or else visit the website at www.bovsl.com
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