The Malta Stock Exchange (MSE) ended the last month of 2012 on an upbeat tone as it increased by 0.45% in the month of December. This therefore added on to the positive result for the year, as the local equity market appreciated by a total of 3.78% in 2012, when compared to the 2011 negative run of 18.15%. The stream of positive results was also reflected in the foreign indices, as 2012 proved to be a fruitful year for investors in the major equity markets as all of them registered significant gains. In Frankfurt the DAX soared by 29%, the NIKKEI 225 in Japan gained 23% while the CAC 40 in Paris appreciated by 15%, thus somewhat outperforming the local MSE Index.

In December, the MSE witnessed the trading of 19 equities in which, 13 edged higher, two slipped and four remained unchanged. From the banking sector, Lombard Bank gained 3.3%, to close at €1.86. This positivity was not reflected on the bank’s overall yearly performance as its share price tumbled by 31%, making it the worst performer for the year. Conversely, HSBC ended the month of December in negative territory as it lost 1.8% of its share price value, to close the year at the €2.70 price level. The international bank recorded a 4.7% increase for 2012.

On the other hand, BOV witnessed the highest turnover for the month, but closed unchanged at €2.415. However, BOV was the best performer from the banking sector for the year as it surged by 8.7% in 2012. This was a reflection of the anticipated and later reported positive financial statements issued at the end of October in which the group registered a profit before tax of €110.73m, compared to €64.37m in 2011. Meanwhile, FIMBank edged 3% higher, to close at $0.80 in December as five deals of just over 16,800 shares took place.

However, GO was one of the top performers for the month as it advanced by 11.7% across 68 transactions of 169,485 shares. The telecommunications company embarked upon a big leap this year as it rose by 21% to close at €1.19, despite having touched an intra-year low of €0.70 in mid-May.

Similarly, SFC also performed relatively well in December as well as in the year. The beverage company managed to rally by 4% in December and 39% in 2012, closing at €2.50. Likewise, Crimsonwing climbed by 17% in December, bringing its yearly advance to an impressive 96%. In fact, the IT operator came a very long way from 2011, as it oscillated between the worst performer in 2011 to the best performer in 2012. The company registered a profit before tax of €512,252 for the year ending 30 September 2012, compared to a €16,997 loss in 2011.

Middlesea Insurance managed to reverse November’s losses as it closed the month of December 5.7% higher across seven trades of 9,414 shares. On a similar note, Grand Harbour Marina added on to November’s gains as it registered a further 0.6% increase over two deals of 6,300 shares, closing at €1.82. During this month the company announced the completion of a €3.1m berth sale.

On the other hand, IHI posted further losses as it drifted 2.3% lower over 16 trades of 178,569 shares, closing at €0.86. However, the hotel operator still managed to close the year at a 2% overall gain.

MaltaPost on the other hand, ended the month in positive territory as it rose by 9% in December. On the contrary, its overall yearly performance proved to be one of the worst as it recorded a 15% drop from the €1.00 price level recorded in the end of 2011.

RS2 Software strengthened by 7% during December, now in its fourth-consecutive monthly rise, closing at €0.74, on 12 deals of 147,867 shares. The company’s share price put on a total of €0.14 in 2012, thus locking a 23% yearly gain. Similarly, Plaza Centres escalated by 11% over the month of December as four transactions of 95,497 shares took place, to close higher at €0.60.

Despite having recorded a positive result for December, Santumas, Medserv and MIDI all registered losses for the year. MIDI was the worst performer out of the three as it plunged by 28%, to close at the €0.275 price level.

Meanwhile, 6PM Holdings and Malita Investments closed the month unchanged at the £0.31 and €0.50 respectively. MIA also remained unchanged at €1.80 despite having announced that passenger movements in November reached 211,588, that is, the highest number ever registered in November.

In the fixed-income market, total turnover amounted to just under €25m. The Malta Government Bonds were the most liquid as 284 trades worth €22m were executed. The 5.9% MGS 2015 (II) was the most active issue for the month as total trading value amounted to over €9m. Meanwhile, in the Corporate Bonds Market over €2.8m were negotiated across 170 deals. The best performer was the 7% MIDI plc GBP 2016-2018 issue as it increased by almost 1.5%, closing at its monthly high of €103.50.

This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange and a member of the Atlas Group. 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 Jesmond Mizzi Financial Advisors at 67, Level 3, South Street, Valletta, or on tel: 21224410, or email [email protected]