MSE Index records second positive week in succession

MSE Trading Report for week ending May 7, 2010

MSE Index records second positive week in succession

The Malta Stock Exchange (MSE) Index closed the week in positive territory for the second week running. After starting the week with two positive sessions, investors’ mixed outlook tipped the Index to negative territory in the following two sessions and back again, having closed the week at 3,537.603 points, up 0.9 per cent on the week. In the equity market trading volume increased considerably to slightly over 426,000 shares as a total of 12 equities were active throughout the week. Eight equities registered a gain, one closed flat, and the remaining three closed the week in decline.

A total of 427 transactions, up from 334 transactions registered last week, worth over Eur7.1m were executed across all traded securities during the week. In the equity market, 219 deals were dealt as trading value climbed to Eur900,797. In the Corporate Bonds market 81 deals were executed for 325,245 nominal with activity spread over 23 issues. In the Government Stocks market activity increased to over 4.3m nominal traded across 125 transactions, while in the Treasury Bills market two transactions worth nearly Eur1.3m were dealt.

Bank of Valletta plc (BOV) was the week’s only financial equity to close in the red, having lost 1.04 per cent or Eur0.035. Trading volume remained more or less in last week’s territory as over 89,000 shares were traded over 80 transactions. BOV closed the initial session at Eur3.50, up by 4 per cent fuelled by positive interim financial results published on April 30, 2010. However, the equity failed to keep up to the upbeat throughout the week losing Eur0.17 or 4.8 per cent to end the week at Eur3.33. Despite this week’s fall in price, year-to-date the equity remains 7.56 per cent in positive territory.

HSBC Bank Malta plc maintained its converging trend against its counterpart, although this week’s gain amounted to a marginal 0.33 per cent. Trading volume seems to be gaining momentum having increased to 88,168 shares dealt over 66 transactions. Throughout the week the equity’s price fluctuated between a low of Eur3.00 and a high of Eur3.07, while closing the week at Eur3.06.

Middlesea Insurance plc was the top performer of the financial equities traded this week, as the insurance firm closed up by 4.29 per cent. However, this gain was attributed to one deal of only 300 shares executed on Friday, while the equity closed flat during three previous sessions. Over 39,000 shares were traded across 11 deals as the equity closed yesterday’s session at Eur0.73.

Similarly, Lombard Bank plc edged slightly higher to close the week at Eur2.95, hence 0.17 per cent in positive territory on a mere 96 shares while closing flat in the previous session. Liquidity remained on the low side with just 1,521 shares traded over four deals.

MaltaPost plc maintained its run of positive results as the equity reached an all time high at Eur0.86 to end the week up by 1.42 per cent. The equity was active during four trading sessions, as trading volume increased to 42,265 shares from 18,801 shares traded last week, still significantly lower than the amounts traded in recent weeks. On the year, the postal operator’s performance stands nearly 23 per cent in the green.

Likewise, Malta International Airport posted a 1.56 per cent gain or Eur0.05 as liquidity soared from 2,700 shares traded last week, to 23,235 shares. The equity’s price hovered between a low of Eur3.14 reached on Thursday, and a weekly high of Eur3.25, the week’s closing price.

GO plc slipped 2.21 per cent lower to end the first week of the month at Eur2.12 after the equity tumbled in the opening session of the week over a mere 400 shares, increased slightly in the following trading day, and closed the other two sessions during which it was active unchanged. Liquidity increased heavily on the week from nearly 13,000 shares to over 56,500 shares.

The overall best performer was International Hotel Investments plc which climbed 5.86 per cent, having gained ground in the opening two sessions, while losing slightly in the final session of the week. The equity closed at Eur0.849 just shy of the Eur0.85 mark reached on Tuesday, as nearly 40,000 shares were traded over eight transactions.

Meanwhile, Simonds Farsons Cisk plc closed up 4 per cent to reach a price of Eur1.80 as nearly 6,000 shares were dealt across four deals. Likewise, one deal of 1,000 shares in Medserv plc elevated the price by 0.94 per cent to Eur4.28, after the equity finished the previous week 1.4 percent in the red.

Similarly to last week, from the IT sector two equities were active, one of which traded unchanged, and another one lost some ground. In fact, Crimsonwing plc edged minimally lower to end the week at Eur0.45 as liquidity reached higher levels than usual on Thursday as 35,000 shares were traded. On the contrary, Loqus Holdings plc traded flat as one single deal of 1,000 shares was executed at last week’s close of Eur0.20.

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].