Negative outlook on the local exchange prevails

MSE Trading Report for week ending April 16, 2010

Negative outlook on the local exchange prevails

The Malta Stock Exchange (MSE) Index lost further ground this week, having closed the first four sessions of the week in the red, but managed to close yesterday’s session in positive territory as Bank of Valletta’s share price gains were enough to lift the Index from a five-day negative streak. On the week the Index lost 0.88 per cent, closing at 3,492.500 points, just 0.92 per cent away from the year’s starting position. 

A total of 297 deals worth over Eur28.6m were executed across all traded securities during the week. In the equity market, 164 transactions were traded for a total value of Eur635,508. In the Corporate Bonds market 548,780 nominal was dealt over 77 deals up from 39 deals registered last week, while in the Government Stocks market nearly Eur15m was traded across 52 deals. Four transactions of over 12.4m nominal were executed in the Treasury Bill market.

For the second week running MaltaPost plc headed the list of gainers as the equity managed a gain of 4.58 per cent during one session, while closing the remaining two sessions during which the equity was active unchanged. Although the equity was the most liquid over the week, trading volume declined to 179,064 shares on 36 deals. The equity’s price fluctuated between a weekly low of Eur0.765 and a high of Eur0.80, the week’s closing price. Year to date, the postal operator’s performance stands at a healthy 14.29 per cent.

Gains in the financial sector remained on the downside as two equities recorded losses, two remained inactive and two other companies registered minimal gains. In fact, FIMBank plc managed a 0.93 per cent or $0.01 gain as the equity closed the mid-week session at $1.08 after having closed the opening two sessions at $1.09 and $1.07 respectively. Trading volume declined heavily to just over 28,000 after abnormal volume was traded last week.

Likewise, Bank of Valletta plc (BOV) edged minimally northwards after investors’ mixed outlook tipped the equity from positive to negative and back again as on the week the Bank gained 0.03 per cent. In fact BOV’s share price fluctuated between a weekly low of Eur3.261 and a high of Eur3.32, but managed to end the week at Eur3.299. Trading volume increased slightly to 67,772 shares as transactions declined to 51.

Conversely, HSBC Bank Malta plc slipped lower for the second week of the month, having lost 2.22 per cent to end the week at Eur3.08 and worsening further its performance since the beginning of the year which is now down by 4.64 per cent. A total of 37 deals, up from 22 recorded last week, of over 30,000 shares were executed. 

Out of all traded equities Middlesea Insurance plc was the week’s heaviest faller, having lost 6 per cent or Eur0.045 during the week’s opening trading day as 11,162 shares were dealt over six deals. The equity’s price now stands at Eur0.705, down over 12 per cent on the year.

From the IT Sector 6pm Holdings plc was the only active equity. In fact one transaction of 2,300 shares went through during the week’s closing session, which depreciated the price by 4 per cent to close the week at £0.48. On Tuesday the company announced that the Board of Directors is scheduled to meet on April 20, 2010 to consider and approve the audited financial statements and to consider the declaration of a dividend.

Similarly, International Hotel Investments plc which was also active on Friday’s session posted a meagre loss of 0.12 per cent as 10,072 shares were traded over five deals. The equity closed the week at Eur0.80. On Thursday the Group announced its audited financial statement for the year ending December 31, 2009, which shows a decline in turnover of Eur24.6m over the same period in the previous year. The Company registered a loss after tax of Eur1.6million compared to a profit of Eur14million in 2008.

For the second week running, GO plc edged lower by a further 0.23 per cent, closing the week at Eur2.17. Trading volume amounted to 30,745 shares as nine deals were executed.

Malta International Airport plc lost all of last week’s gains as on Tuesday the airport operator lost 1.59 per cent or Eur0.05 while closed flat on Thursday. A total of 4,300 shares changed hands over four deals as the equity ended the week at Eur3.10. Despite closing the week down for the third week in four, the equity’s performance year-to-date is still 29 per cent up.

Trading volume in Simonds Farsons Cisk plc declined to nearly 4,000 shares from 55,000 shares traded last week. The equity was active during Thursday’s session as all three deals were executed at Eur1.72, last week’s closing price. On Wednesday, the company announced that at the forthcoming Annual General Meeting a net dividend of Eur0.05 per each ordinary share will be recommended for approval of the shareholders. The company registered a profit before tax of Eur3.1million for the financial year ended January 31, 2010 compared to Eur0.89million reported in the previous financial period. 

Medserv plc traded unchanged at last Friday’s closing price of Eur4.30 as three transactions of 12,000 shares were executed.

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]