MSE Trading Report for week ending June 11, 2010

Index down for thirteen consecutive sessions

The Malta Stock Exchange (MSE) Index maintained its downward trend as throughout the week the Index lost one per cent. Due to a public holiday, the local exchange was closed on Monday, hence activity took place over four sessions, all of which closed in negative territory and thus resulting in thirteen consecutive trading sessions. The two major banks were the main contributors although various other equities lost ground. As expected trading volume in the equity market increased further as on constant price declines, valuations became more lucrative, hence pushing demand higher. Meanwhile activity both in the corporate bonds and government stocks declined further as investors again preferred riskier assets. Fourteen equities were active throughout the week, five of which gained, eight closed down while one equity ended the week unchanged.

Transactions across all traded securities decreased marginally to 269 deals for a total value of just over nearly Eur8.6m. In the equity market, liquidity maintained its upward trend as 365,156 shares were dealt over 148 deals. In the Corporate Bonds market 275,909 nominal was dealt across 50 deals, while in the Government Stocks market 69 transactions of 2.5m nominal were recorded. In the Treasury Bills market two deals across two securities were executed.

Notwithstanding the pessimist outlook towards financial equities, Middlesea Insurance plc emerged as the overall best performing equity having posted a 4.65 per cent or Eur0.04 gain. Trading volume in the insurance firm regained ground as nearly 55,500 shares were traded over 13 deals. The equity kick started the short week with a minimal gain, declined during the mid-week session and more than recouped this loss in the following two trading days. The equity’s performance year-to-date stands strongly in positive territory, enjoying a 12 per cent gain.

Lombard Bank plc moved against its larger peers as the Bank recorded a hefty 4 per cent or Eur0.115 gain. On Thursday the equity tumbled by 2.27 per cent over a negligible 285 shares dealt over one single transaction, however the Bank soared in the following session. In fact yesterday the equity climbed by 6.43 per cent over significant trading volume which amounted to 53,000 shares. Lombard closed the week at Eur2.98, 0.33 per cent shy of the year’s opening price.

Losses incurred by HSBC Bank Malta plc shares increased further as the share price fell for eleven sessions in succession. Trading volume in the equity remained the highest across all traded equities as investors strive to obtain shares at the best bid. Nearly 57,000 shares changed hands across 40 transactions as the price fell by 3.75 per cent or Eur0.11 to close the week at this year’s low of Eur2.82.

Meanwhile, Bank of Valletta plc (BOV) shares edged lower by 0.91 per cent as the equity closed yesterday’s session at Eur3.27. Trading volume in the Bank declined by more than half as 29,381 shares were active over 35 deals. BOV failed to move up this week after it closed flat in the opening session while declined steadily thereafter.

FIMBank plc was the only financial to close flat at $1.01. The equity barely fluctuated as four deals of 14,325 were executed throughout the mid-week session. 

For the second week, Malta International Airport plc shares headed northwards with a 1.27 per cent or Eur0.02 gain. A total of 26,470 shares were traded across 15 deals as the equity closed the week at Eur1.60. Similarly, over one trading session MaltaPost plc moved higher by a meagre 0.11 per cent to end the week at Eur0.90.

GO plc maintained its downward trend as the equity edged lower by a minimal 0.5 per cent. On the week trading volume increased to 15,200 shares dealt across nine transactions. The equity’s share price hovered between a low of Eur1.95 and a high of Eur2.03, but managed to close yesterday’s session at Eur2.

In the IT Sector two equities were active both of which closed in the red. Crimsonwing plc lost 2.22 per cent over three deals of just over 33,000 shares. The company announced on Thursday that it has been awarded a three year contract for the provision of IT professional services and solutions with an estimated value of Eur3m per year. Meanwhile, RS2 Software plc lost 0.19 per cent over one transaction of 600 shares.

International Hotel Investments plc edged slightly higher on the week by 0.61 per cent to close at Eur0.825. A total of 40,000 shares were traded over seven deals. Conversely, Island Hotels Group plc lost 0.2 per cent to end the week at Eur0.998.

Likewise, one deal of 14,000 shares in Plaza Centres plc depreciated the price by a hefty 7 per cent to Eur1.516. Meanwhile Medserv plc lost 0.47 per cent to close at Eur4.28.

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].