MSE Index down 3% on the week

MSE Trading Report for week ending February 5, 2010

MSE Index down 3% on the week

The Malta Stock Exchange Index closed in decline for the second week running as another five-day negative streak was recorded. The Index slipped 2.99 per cent on the week having closed the week at 3,731.892 points, as sharp declines were recorded in the financial equities. Uncertainty in the equity markets meant that investors opted for safer government stocks as demand for such securities surged, while a yearly low was traded in the equity market. A total of 15 equities were active this week as only four managed to end in the green, ten closed in decline, while one equity traded unchanged.

Total transactions for the week amounted to 366 deals down from 411 deals recorded last week, as turnover amounted to EUR6.8m. In the equity market, 221 deals were executed for a total value of EUR666,023 while in the corporate bonds market 64 transactions, for a value of EUR811,032 were executed. Transactions in government bonds increased by 30 to 79 deals as value traded amounted to EUR3.3m. One transaction of over EUR2m in the treasury bills market was executed.

GO plc recouped last week’s losses to end the week at a fresh 16-month high having satisfied the last few transactions of yesterdays’ sessions at EUR2.299, hence edging 0.83 per cent up on the week. Activity in the equity declined, as volume of shares traded declined from over 112,000 shares last week to 45,755 shares this week. The equity’s year-to-date performance now stands at a gain of 9.48 per cent.

On the contrary Bank of Valletta plc (BOV) was heavily traded and was the most liquid equity of the week, as 89 transactions of 90,672 were executed. BOV closed unchanged on Monday, while lost over EUR0.15 in the remaining sessions, hence ending 4.44 per cent down on the week. The equity closed the week at EUR3.249 having recovered from a low of EUR3.20. During yesterday’s trading session the Bank announced that it has submitted an application to the Listing Authority of the MFSA requesting the admissibility to listing of a new subordinated bond.

Similarly, HSBC Bank Malta plc (HSBC) closed in the red for the second week in a row having closed Friday’s session at EUR3.761, down 3.56 per cent on the week. Investors’ confidence in the equity declined further as 26,670 shares were traded, down from 42,937 recorded last week, and an abnormal amount of 36 deals was recorded. Year-to-date the equity is outperforming the other banking shares as it is up 16.44 per cent.

Mixed feelings towards Middlesea Insurance plc shares persist as the equity traded at a weekly high of EUR0.859 and a low of EUR0.73, hence the price at which the equity closed the week. Liquidity increased over fewer transactions as more investors rallied to purchase the asset at the week’s closing price. All of the equity’s gains over the month of January were lost as on the year the insurance firm now stands at 9.20 per cent in the red.

Meanwhile Lombard Bank plc was only active on three sessions as three transactions were executed. Only 3,100 shares were executed as the equity closed 0.32 per cent down, to end the week at EUR3.109. Similarly, unlike last week’s performance FIMBank plc was dragged downwards by negative outlook in the financial sector. In fact, the trade specialist lost 3.39 per cent or EUR0.04 as 13,340 shares changed hands across five deals. On the other hand Global Capital plc maintained its positive run as three deals of 700 shares on Friday elevated the price by 0.69 per cent to close the week at EUR1.90.

In the IT sector Datatrak Holdings plc and 6pm Holdings plc (6pm) registered minimal gains on similar transactions. In fact the former gained 2.56 per cent to close at EUR0.20 as two deals of 2,124 shares were executed. On higher volume of 10,000 shares 6pm gained 4.17 per cent or EUR0.02 to end the week at EUR0.50

Malta International Airport plc (MIA) failed to maintain last week’s outstanding performance having registered a loss of 6.15 per cent throughout the week. Volume traded was thin as only 1,498 shares were traded over 4 deals. The equity traded at a high of EUR3.09, last week’s closing price, and at a low EUR2.90, hence the equity’s closing price.

Activity in Maltapost plc remained on the high side for the fifth consecutive week as over 50,000 shares were dealt with across nine transactions. Despite the equity’s weekly loss of 6.13 per cent, on the year the equity is up by 7.14 per cent. Likewise, Plaza Centres plc saw its price decline by 2.37 per cent as four deals of 4,000 shares were executed closing at EUR1.65, while another four transactions in Santumas Investments plc depreciated the price by a meagre 0.04 to close at EUR2.60.

One deal in Island Hotels Group plc left the price unchanged for the fifth week in succession. Conversely, Grand Harbour Marina plc was active across four sessions during which two closed unchanged while another two closed in decline. In fact, the equity’s price now rests at EUR1.87, hence 1.58 per cent down on the week.

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].