Investors cautious as market awaits HSBC results

February 19, 2010

MSE Trading Report for week ending February 19, 2010

The Malta Stock Exchange Index managed a minimal gain on the week to close up for the second consecutive week. The opening two trading days of the week were rather positive, with financial equities being the only gainers. However, as outlook towards financial equities declined, the Index shed its first losses. Despite the downturn on Thursday and Friday the Index registered a gain of 0.27 per cent to close the week at 3,837.069 points. Trading volume was the highest for the month of February, while the amount of transactions recorded increased on fewer active equities. In fact thirteen equities were active, four of which registered gains, six closed in decline and the remaining three closed the week unchanged.

The total amount of transactions on the local exchange increased to 315 with a total turnover of Eur6.6m. In the equity market, 192 deals were executed for a total value of Eur918,387 up from Eur531,877 registered last week. In the Corporate Bonds market 75 transactions, of Eur490,208 were executed while 44 deals in the Government Bonds Market were affected for a total value of Eur868,364. Four transactions of over Eur4.3m in the Treasury Bills market were executed.

Out of the financial equities, Bank of Valletta plc headed the list of gainers having gained 2.88 per cent or Eur0.098 to close at Eur3.498. The equity traded at a weekly high of Eur3.50 recorded on Tuesday, however minimal losses were registered in the following two sessions, while managing a meagre gain yesterday. Traded volume amounted to 70,463 shares on fewer than usual transactions as year-to-date, the equity’s performance stands at a positive 12.98 per cent.

HSBC Bank Malta plc also closed 0.21 per cent up as 59 deals of 85,159 shares were recorded. The equity traded at a weekly high of Eur3.905 on Tuesday, and a low of Eur3.84 recorded yesterday. The equity closed the final two sessions in decline; however the gains recorded in the opening sessions were enough to end another week in positive territory as investors’ await the announcement of the financial results.

Meanwhile Grand Harbour Marina plc was the best overall performing equity, having registered a hefty gain of 7.47 per cent or Eur0.13 on the week. Three transactions during the week were recorded; two elevated the price by 6.95 per cent and 0.48 per cent respectively, while closing yesterday’s session unchanged at Eur1.87. Hence, the equity managed to recoup some of the losses recorded during the past weeks.

The week’s most traded equity was MaltaPost plc as 15 deals of 192,522 shares were transacted, with Thursday’s session taking the lion’s share as 115,000 shares were traded over two deals. On the week, the equity managed a gain of 3.33 per cent, having closed at Eur0.775, however traded at a low of Eur0.71 on Tuesday.

Middlesea Insurance plc closed the week unchanged at Eur0.75, having started the week with a minimal gain of 0.66 per cent, however lost the same amount in the following session. From than on the equity traded unchanged at the week’s closing price. Volume of shares traded increased to 43,400 across 16 deals.

Similarly, FIMBank plc closed the week at $1.18, last week’s closing price; however one deal during Monday’s session was satisfied at its weekly low of $1.169. On the contrary, Lombard Bank plc after several inactive sessions, lost 0.61 per cent as one transaction of 1,200 shares was executed to end the week at Eur3.09. Likewise, one deal of 700 shares in GlobalCapital plc saw the equity end the week in decline by a minimal 0.26 per cent to close at Eur1.895.

Meanwhile, after two weeks of consecutive gains GO plc edged 0.43 per cent lower on the week having closed yesterday’s trading day at Eur2.29. A large decline in liquidity was noticeable throughout the week as only 11,200 shares were traded, the lowest since the beginning of the year. The equity’s performance year-to-date stands at a positive 9.05 per cent.

Similarly, Malta International Airport plc failed to maintain last week’s positive performance as yesterday six transactions depreciated the price by 1.64 per cent or Eur0.05 after the airport operator closed Tuesday’s session unchanged. Over 16,000 shares were traded over eight deals, throughout the two trading days during which the equity was active. At the week’s closing price of Eur3.00, the equity has so far registered a gain of 25 per cent.

Santumas Shareholdings plc was active on three trading sessions during which 21,125 shares were dealt over five transactions. Despite registering a loss on Wednesday’s session, the equity managed to close unchanged having recouped all losses in the remaining two sessions, hence ending the week at Eur2.60.

Meanwhile, one deal of 3,160 shares down from 17,128 recorded last week, in International Hotel Investments plc depreciated the price by 2.50 per cent to close the week at Eur0.78. Simonds Farsons Cisk plc also closed 1.16 per cent down at Eur1.70 over four deals of 1,163 shares.

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].