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The local equity market experienced wide fluctuations this week, as investors first pushed equities to their all-time highs only to see them retreat again on significant profit taking activity as others thought it was time to exit the market.
After touching an all-time high of 6,314 points on Tuesday, the Malta Stock Exchange Index suffered a significant drop throughout the rest of the week closing on Friday at 5,812 points. This represents a decline of 3 per cent over the previous week.
The two major banking equities attracted the lion’s share of the week’s activity as both registered volumes in excess of 400,000 shares each. The positive results published by HSBC Bank Malta at the end of last week and particularly the announcement of a 3-for-1 bonus issue, generated significant investor interest which resulted in considerable demand. However at one point during Tuesday session supply came out in abundance absorbing all outstanding demand up to the Lm10.50c level.
The equity declined further in the following three sessions as the equity started trading ex-div as from Wednesday’s session. By the end of the week the equity had declined by 3.6 per cent to end Friday’s session at Lm9.80c.
Trading in Bank of Valletta shares followed a similar pattern as investors first pushed the equity to a record high of Lm5.17c5 in Tuesday’s session only to see it close at Lm4.34c5 by the end of Friday’s session. In effect the equity was down by 5 per cent compared to the previous week.
The other listed banks FIMBank and Lombard Bank both ended in positive territory. The former registered a double digit growth this week closing at a historical high of USD2.50c after publishing strong full year results for the period ended 31 December, 2005. The trade-finance specialist registered a USD2.9 million pre-tax profit compared to a pre-tax loss of USD0.3 million registered in 2004, and announced a scrip dividend of USD0.0114 and a one for five bonus shares issue to all registered shareholders as at the end of February.
Also in positive territory ended shares of Global Financial Services Group, Middlesea Insurance and International Hotel Investments, while significant losses were registered in Maltacom and Malta International Airport.
This article was compiled by BOV Stockbrokers Ltd, a member of the BOV Group. BOVSL is licensed to conduct investment services business by the MFSA BOVSL’s offices are situated at BOV Centre, Cannon Road, Santa Venera HMR 07. You can also contact BOVSL by email at bovsl@bov.com, by phoning on 2275 1732 or else visit he website at www.bovsl.com.
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