MSE Trading Report for week ending April 09, 2010

Financial equities drag MSE index down

After closing last week unchanged, the Malta Stock Exchange (MSE) Index declined once again by 1.47 per cent as further losses were recorded by various equities. In fact, the local Index’s heavy dependence on financial equities negatively affected its performance. Throughout the week, twelve equities were active as six closed down, four gained and two closed flat.

A total of 245 deals worth over Eur6m were executed across all traded securities during the week. In the equity market, 145 transactions were traded for a total value of Eur918,541 as 673,804 shares changed hands. In the Corporate Bonds market close to Eur280,000 in value was dealt over 39 deals while in the Government Stocks market nearly Eur1.5m was traded across 55 deals. Two transactions of over 3.2m nominal were executed in the Treasury Bill market.

MaltaPost plc headed the list of gainers as the equity closed unchanged during three sessions while closing the other two trading days up, with gains amounted to 2.14 per cent or Eur0.016, to end the week at Eur0.765. Over 218,000 shares were traded throughout the week across 12 transactions with the majority being traded on Thursday. The equity’s performance year to date is now registering a gain 9.29 per cent.

The negative outlook, with which HSBC Bank Malta plc shares closed the first quarter of the year, prevailed during the first week of the month as the equity registered a hefty loss of over three per cent or Eur0.098. The equity was active on four trading days, two of which closed flat, registered a minimal loss on Thursday, while ended yesterday’s session Eur0.09 down as volume increased to 20,700 shares to end the week at Eur3.15. Following recent losses, the equity’s performance year-on-year is now down by 2.48 per cent.

After posting a gain in the previous two weeks, Bank of Valletta plc (BOV) share price edged 0.96 per cent lower on the week having closed yesterday’s session at Eur3.298. Nearly 60,000 shares were traded over 56 deals as the price fluctuated between a high of Eur3.33 and a weekly low of Eur3.29. Despite this week’s loss on the year BOV is still in positive territory by 6.52 per cent.

Meanwhile, trading volume in FIMBank plc by far outpaced the other listed equities as over 235,830 shares changed hands during one trading session. The trade specialist lost nearly 7 per cent as the price declined to $1.07. Similarly, Lombard Bank plc closed the week 1.34 per cent down at Eur2.95 as five deals of 4,600 shares were executed.

Middlesea Insurance plc was the only financial equity not to close the week in the red as the insurance firm managed to recoup all the losses recorded on Tuesday during the following session. In fact the equity’s price now stands at Eur0.75, as just over 5,200 shares were traded across six deals. On Wednesday the insurance firm announced that the Board of Directors is scheduled to meet on April 27, 2010 to approve the company’s audited financial statements for the year ended December 31, 2009.

Similarly, International Hotel Investments plc closed flat at Eur0.801 shedding 5.76 per cent on Friday after managing a 6.12 per cent gain on Monday to reach a weekly high of Eur0.85. A total of 8,300 shares were negotiated over five transactions. On the contrary, Simonds Farsons Cisk plc ended the week 1.24 per cent up as 55,000 shares were traded over seven deals. On Monday, the Company announced that it requested the approval of a prospectus for the issue of unsecured and unsubordinated bonds of an aggregate principal amount of Eur15m.

Malta International Airport plc closed up for the first time in three weeks. The equity closed the initial session 0.64 per cent down, however, on Thursday the airport operator more than retracted these losses as the final deals were executed at Eur3.15. A volume of 13,730 shares was traded across fourteen deals.

GO plc lost a negligible 0.23 per cent on Friday to close at Eur2.175 as 30,000 shares were active on 12 transactions throughout the week. Meanwhile, one deal of just over 2,000 shares in Grand Harbour Marina plc depreciated the price by 5 per cent to Eur1.87. On Friday the company announced that the board of directors is scheduled to meet on April 12, 2010 to consider and approve the financial statements for the year ended December 31, 2009 and to consider the declaration of a dividend. 

On Friday Medserv plc gained 1.2 per cent to close the week at Eur4.30 as two deals of 7,500 shares were executed. On Thursday the company announced that the board of directors is proposing for the approval of the shareholders at the Annual General Meeting the payment of a net dividend of Eur0.135c per ordinary share. The company reported a profit before tax of Eur3.18million for 2009 compared to just under Eur1million in 2008.

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].