By Michael Ioannou
THE EQUITY market ended flat yesterday after a weak opening on light trading dominated by transactions in small-caps and to a lesser extent the heavyweight banking sector.
Opening some 10 points weaker than on Wednesday, the market built on a small recovery in mid-session to close 1.3 points, or 0.21 per cent, lower at 643.64 with buyers entering as the session was drawing to an end.
Trading fluctuated in a narrow band between 634.42, the lowest point of trading, and 643.64, which was the highest peak of the day. The value of transactions was marginally higher than on Wednesday at £19.9 million, albeit on a lower volume of 4,035 trades.
Four of the sub-sectors fell and three rose. Traders said the market was not following a particular direction and some investors were maintaining hold positions.
“The financial results reporting period coming up is a very important factor but I would think that with some companies these results are already priced in,” said a trader at a Nicosia brokerage.
“There are still other companies though where investors will be surprised by the very good results for 1999 and I would expect some interesting announcements,” he added.
The heavily-capitalised banking sector, which represents more than half of the market’s £8.5 billion capitalisation, slipped in tandem with the general index, closing 0.3 per cent lower.
Bank of Cyprus slipped nine cents to £9.80 on a volume of 143,363 shares while the Cyprus Popular Bank closed 22 cents higher to £13.47. Hellenic Bank, bolstered by a spate of buys earlier this week, retreated 15 cents to £4.70 on a volume of 223,942 shares.
Universal Life Insurance continued to climb, adding £1.83 to close at £24.25 pounds, hitting a new year-high and propelling the insurance sub- sector up 3.2 per cent. Commercial shares also rose marginally by 0.3 per cent. In the volume ranks, Leptos Calypso dominated with 798,052 shares changing hands, climbing 19 cents to £1.48. Louis Cruise Lines was also heavily traded on mainly institutional investor buying with a volume of 437, 093, followed by Malloupas & Papacostas with 388,035 shares.
* Computer services firm Avacom announced yesterday its board would meet to debate a possible bonus issue to shareholders and the prospect of spinning off one of its units offering web services. At the February 8 meeting, Avacom said it would debate taking Avacom Net Services Ltd., public, and the possibility of giving preferential treatment to existing Avacom shareholders in a private placement. The company said it would also discuss a proposal for co-operation with a Greek company through subsidiary Avacom Hellas S.A., and the intention of associate company Intersys Ltd., going public. Avacom own 51 per cent of Intersys.
