MSE Trading Report for week ending June 25, 2010

Middlesea Insurance shares up by a hefty 10%

The Malta Stock Exchange (MSE) Index closed down after recording four consecutive negative sessions. Throughout the week the Index lost 0.9 per cent to close at 3,381.738 points. Despite the negative sentiment surrounding the local exchange Middlesea Insurance plc emerged as the overall best performing equity. Following a string of negative results the local Index performance year-to-date now stands at 2.28 per cent in the red. As was the case last week, on Monday the MSE started the week on a positive note, however failed to keep up the positive trend. Turnover in the equity market declined slightly with fewer deals being completed, as ten equities were active. Only two managed to move higher, six closed lower, and two traded flat.

Transactions across all traded securities amounted to 305 deals for a total value of over Eur7.5m. In the equity market, trading volume amounted to 245,460 shares dealt across 141 transactions. In the Corporate Bonds market 557,530 nominal were traded across 75 transactions, with turnover reaching Eur530,882. In the Government Stocks market 85 transactions of 3.5m nominal were executed totalling Eur3.7m, while in the Treasury Bills market four deals over four securities was recorded for a value of Eur2.7m.

Positive outlook towards Middlesea Insurance plc maintained its momentum as the equity’s price surged by over 10 per cent to close the week at Eur1.052. In fact for the third consecutive week the insurance firm headed the list of gainers, despite the negative sentiment surrounding financial equities. On the week trading volume increased to 27,284 shares dealt over 15 transactions. The equity’s performance year-to-date stands strongly in the green by nearly 31 per cent.

This week’s other gainer was GO plc which after a series of negative results managed to post a 1.65 per cent gain. Liquidity increased to nearly 30,000 shares dealt over 14 deals as the equity closed the week at Eur1.85 after having traded at a high of Eur1.86.

In the banking sector, Bank of Valletta plc was the worst performer having lost an overwhelming 3.38 per cent or Eur0.11 throughout the week with liquidity increasing further as the equity’s price declined to Eur3.14. In fact over 42 deals of 41,000 shares were executed with Tuesday’s session taking the lion’s share. Despite this week’s negative performance the equity is still up 1.42 per cent in 2010.

HSBC Bank Malta plc failed to maintain last week’s positive stance. The Bank nearly lost last week’s gain having edged 1.08 per cent lower to close at Eur2.84. The equity was the week’s most liquid with over 64,500 shares changing hands over 52 deals as the price fluctuated between a high of Eur2.87 and a low of Eur2.84.

Meanwhile, one single transaction of 1,044 shares in Lombard Bank plc depreciated the price by 0.65 per cent or Eur0.019 to end the week at Eur2.90. FIMBank plc which was active during the mid-week session lost nearly 1 per cent to close at $1.00. Two deals of 5,184 shares were executed.

Active over three trading days Malta International Airport plc lost 1.22 per cent as the gains recorded on Wednesday where not enough to make up for the previous session’s loss. The equity’s price fluctuated between a low of Eur1.61 and a high of Eur1.65, but managed to close the week at Eur1.62.

MaltaPost plc closed again unchanged at the Eur0.90 mark. The postal operator was active on one trading session during which 31,000 shares were traded over four deals. Similarly over two deals spread across two sessions Simonds Farsons Cisk plc traded flat at Eur1.80. Over the week a total of 17,962 shares were traded. On Thursday, during the Annual General Meeting the company reported that the group’s turnover for the year ending January 31, 2010 reached Eur65.1m, while the group’s profit before tax amounted to Eur3.2m. The meeting approved a final dividend of Eur1.5m which equates to a net dividend per share of Eur0.05 per ordinary share.

Meanwhile International Hotel Investments plc lost 0.73 per cent on one deal of 2,009 shares. The equity closed the week at Eur0.819.

Tumas Investments plc yesterday announced that the Eur20m bond issue closed immediately after opening due to heavy demand. The company also exercise its over-allotment option of an additional Eur5m.

Island Hotels Group Holdings plc this week reported their unaudited financial statements and half yearly report for the six month period ending April 30, 2010.

The Group registered revenue of Eur 10.49 million for the first six months of its financial year. Loss after tax amounted to Eur2.09 million. The Group stated that “the financial year commencing 1 November 2009, continued on the same challenging path on which the previous year closed. As expected, the lingering effects of the international economic downturn impacted the business during the first six months of the year. On a positive note, despite the material increases in utility rates, management succeeded in reducing the overall cost base of the group by just under 5% resulting in cost reductions of just over Eur 600,000.” The management retain their optimism for the second half of the year as this contributes a more than proportionate part of the Group’s annual performance, because of the seasonal nature of the business.

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].