MSE Index continues to shed profits in March

MSE Trading Report for week ending April 01, 2010

MSE Index continues to shed profits in March

The Malta Stock Exchange (MSE) Index ended the short trading week flat at 3,576.006 points. Despite a slight downward move in the initial two sessions, on Thursday the MSE gained enough ground to bring the Index level to last week’s closing position. Trading activity was concentrated on just five equities with the two major banks being the most liquid. Only one equity gained, another two closed unchanged, while the remaining two equities lost some ground.

Throughout the month of March, the Index lost further ground amounting to 1.96 per cent when compared to its level at the end of February of 3,620.153 points. On the month, all banking equities lost ground while various small caps recorded respectable gains, although their weighting barely affected the Index. Trading volume increased to 1.5m shares despite a drop in the amount of transactions which declined slightly to 724. Trading in MaltaPost plc more than doubled over the previous month, and yet again was the most liquid equity of the month. Activity in Bank of Valletta plc shares was the highest with 230 transactions being recorded.

A total of 132 deals worth over Eur4.1m were executed during the week. In the equity market, 62 transactions were traded for a total value of Eur243,360 as over 84,000 shares changed hands. In the Corporate Bonds market 326,185 nominal was dealt over 32 deals for a total value of Eur310,484. In the Government Stocks market over Eur1.8m, was traded across 33 deals, while five deals were executed in Treasury Bills for a total value of over Eur1.7m.

Bank of Valletta plc (BOV) posted a gain of 1.52 per cent or Eur0.05 to close in positive territory for the second week in a row. The equity was the only gainer during the opening and closing sessions of this trading week, while closing flat on Tuesday. Over 29,000 shares changed hands over 29 deals as the price hovered between a weekly low of Eur3.28 and a high of Eur3.33, the week’s closing price. On a monthly basis, BOV was the second most liquid equity, as 293,276 shares were traded.

MaltaPost plc was heavily traded during the month of March as 680,202 shares changed hands on 88 deals, compared to over 53,000 shares traded during the first quarter of last year. On the week, the postal operator closed unchanged during all three trading sessions at Eur0.749 as five deals of 4,768 shares were executed, with the bulk of trading taking place on Tuesday’s session. During the past week the equity’s price barely changed, however during the month the price fluctuated between a low of Eur0.748 and a high of Eur0.80. Despite ending the month in the red, the equity is still in positive territory on the year at 7 per cent.

Middlesea Insurance plc also closed the short week flat at Eur0.75. A total of 7,632 shares changed hands over four deals, as the equity traded unchanged across the two sessions during which it was active. During the month of March a total of 25 deals were executed as nearly 48,000 shares were traded. Month-on-month the equity also closed flat.

Meanwhile, during the past two weeks HSBC Bank Malta plc moved against its counterpart as the Bank lost further ground. In fact, the Bank headed downwards during the opening two sessions, but retracted some of the lost ground on Thursday to close the week at Eur3.248, 0.98 per cent down on the week. A total of 34,299 shares was traded over 16 deals as the price fluctuated between a high of Eur3.28 and a low of Eur3.20, the latter reached on Tuesday on relatively thin volume. The bank’s performance on the month was down by 3.03 per cent, while on the year the equity is still up by 0.56 per cent.

Malta International Airport plc ended the week 0.95 per cent in decline to for the second consecutive week. The equity started the week at a high of Eur3.16, as the last transactions on Tuesday were executed at a weekly low of Eur3.12. Trading volume amounted to 8,416 shares as eight deals were executed. Despite losses recorded in the past two weeks the equity’s performance on the year is still 30 per cent up.

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].