MSE

Trading Report for week ending January 29, 2010

MSE

Index slips in last week of January

The Malta Stock Exchange Index slipped

lower for the fifth session in succession having closed the week at 3,846.910

points, 1.86 per cent down on the week, yet registering gains of 11% in January.

The equity market was characterised by negative sentiment as only four of the

17 active equities registered gains, three closed unchanged, and ten equities

closed down. Liquidity and total deals recorded in the equity market were at a

monthly low, while an increase in corporate bonds was noticeable.

Total transactions

for the week amounted to 411 deals with a turnover of nearly Eur9.8m. In the equity market, 268 deals were executed

for a total value of over Eur1m while in the corporate bonds market 92 transactions, for a value of Eur899,592

were executed. Transactions in government

bonds declined to 49 deals as valued traded increased to Eur6.4m compared

to last week, while over Eur1.3m was traded in the treasury bills market.

Bank of Valletta plc (BOV) closed

the week in the red, having lost 4.2 per cent or Eur0.149 on the week hence

closing at Eur3.40. Nonetheless the equity was the most active as 79 deals were

executed for a total of 98,821 shares. BOV traded at a weekly high of Eur3.549 on

Monday and a weekly low of Eur3.40 registered yesterday. Despite the heavy

gains registered in 2009 the share price of BOV managed a gain of  9.82 per cent in the first month of trading. Yesterday

after trading hours, the Bank announced that operating profits for the first

quarter of the current financial year have been satisfactory and an encouraging

growth in customers’ deposits has been noticeable. BOV also announced that a

new bond issue is expected in the second quarter of the current financial year,

in part to make up for the redemption of the current subordinated bond, due to

mature on  March 15, 2010.

Similarly, HSBC Bank Malta plc (HSBC) failed to

maintain last week’s positive performance as the equity lost 2.5 per cent to

end the week at Eur3.90. Volume traded in HSBC plunged by more than half  as 42,937 shares changed hands over 52 deals when

compared to 93,993 shares traded last week.

Conversely, the

amount of shares traded in GO plc was

at a monthly high as 112,740 shares were traded over 41 deals. However, the

equity’s weekly performance declined by 0.22 per cent, after the equity managed

a minimal gain yesterday, having shed 0.44 per cent on Tuesday. On the month,

the equity is 8.57 per cent up at Eur2.28.

Meanwhile Malta International Airport plc (MIA)

registered a gain of 6.55 per cent, or Eur0.19 to close the week at Eur3.09. After

a positive four-day streak, the equity shed Eur0.01 during yesterday’s session.

Likewise, Datatrak Holdings plc

managed a Eur0.035 gain across three deals of 2,300 shares to close at Eur0.195.

Lombard Bank plc also

closed the week in the red as the share price slipped by 0.03 per cent

yesterday, closing at Eur3.119. Volume was thin during the week as 7,252 shares

were traded across five deals. Global

Capital plc registered a hefty gain of 11 per cent to reach Eur1.887 having

traded 7,270 shares during four sessions. The other financial equity to gain

ground was FIMBank plc having closed

at $1.18, thus 3.51 per cent up.

Activity in Middlesea Insurance plc was also on the

low side as only 15 trades of just over 24,000 shares were recorded. The

insurance firm’s weekly loss amounts to a meagre 0.12%, while its monthly gain

stands at just under 7 per cent, ending the week at Eur0.859.

Grand

Harbour Marina plc was active during

three sessions after being inactive for over a year, as 16,500 shares were

negotiated over four transactions. Over the week, the share price slipped to Eur1.90,

4.04 per cent down. On Monday, the company announced a new Bonds Issue for a

value of  Eur10million, maturing in

2017-2020 at  7 per cent per annum issued

at par. The net proceeds from the issue of the Bonds will primarily be used by

the Issuer to prepay its current loan facility of Eur3.8 million, while the

remaining proceeds will be deployed for potential further waterside and

landside investments within the Marina itself

and within Malta.

The Issuer also indicated a possibility to co-invest with Camper &

Nicholsons in existing and new investment marinas outside of Malta with a focus on the Mediterranean.

The Bonds are unsecured

and shall at all times rank pari passu    with other present unsecured obligations

of the Issuer.

International

Hotel Investments plc was active

during three sessions as a clear preference towards this equity was noticeable

with 96,000 shares changing hands. The equity closed at Eur0.78, down 2.5 per

cent. 

Two deals of 400

shares in Island Hotels Group Holdings plc

left the share price unchanged at Eur1.01.

Maltapost plc closed unchanged on Monday,

shed 0.13 per cent on Tuesday thus closing the week in the red at Eur0.799.         

Simonds

Farsons Cisk and Medserv plc were both active on Thursday as one deal in the two

equities left the prices unchanged at Eur1.72 and Eur4.25 respectively. In the

IT sector, Crimsonwing plc closed at

a share price of Eur0.41 as 2,000 shares were traded in a single deal, down

4.21%, while three trades totalling 10,150 shares in 6pm Holdings plc resulted in

a decline of 28.3% ending the week at GBP0.48.

This article,

which was compiled by Jesmond Mizzi, Managing Director of Jesmond Mizzi

Financial Services Limited (JMFS), does not intend to give investment advice

and the contents therein should not be construed as such.  JMFS is licensed to conduct investment services

by the MFSA. 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 JMFS at 67/3, South Street, Valletta

or on Tel: 21224410 or email [email protected].