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The shortened week at the Malta Stock Exchange was characterized by strong and persistant buying activity in banking sector equities, which then spread over to other companies in the market. Ironically, the week was dry of any market moving news or company announcements, but that did not stop the Index from closing at a fresh record high during every single session.
Bank of Valletta was the most sought after equity during the week, with an aggregate total of 111,529shares being exchanged across 186 transactions. The price increased by a further 2.3 per cent to a record closing high of Lm7.06c, bringing the total gains so far this year up to a remarkable 56.7 per cent.
Sentiment in this equity remained remarkably bullish as investors look forward to next week's Annual General Meeting which should see shareholders approve the 1-for-1 bonus issue to all holders of shares on the 18 January 2006. Although the bonus issue will increase the number of shares owned it should not increase the total value, as the ratio of number of shares held to the number of shares outstanding remains constant.
Lombard Bank wobbled slightly during the week, as a few investors sold out to book profits. However buying activity quickly returned after the mid-week break to see the price finish the week at a record high of Lm7.20c.
HSBC Bank Malta closed in positive territory for the third week running, with the price closing just a whisker away from its record high, at the Lm7.14c9 level.
Middlesea Insurance was this week’s biggest gainer as the equity rallied by almost 3 per cent to close at Lm3.50c, its highest level since February 2001. Activity was markedly low with merely 629 shares being exchanged across four sessions.
Elsewhere in the market, Maltacom shares gained a little bit less than a percentage point on relatively good volume whilst Global Financial Services Group succumbed under selling pressure, falling 4 per cent to Lm1.20c, its lowest level since August 2005.
In the fixed interest sector of the market, activity amongst corporate bonds was particularly volatile with lack of liquidity forcing wild swings in prices. On the contrary proceedings amongst government stocks was conducted in a more orderly manner.
This article was compiled by BOV Stockbrokers ltd, a member of the BOV Group. BOVSL’s offices are situated at BOV Centre, Cannon Road, Sta Venera. You can also contact BOVSL by email at bovsl@bov.com, by phoning on 2275 1732 or else visit the website at www.bovsl.com
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