MSE Trading Report for week ending July 2, 2010

Large caps drag MSE Index down

The Malta Stock Exchange (MSE) Index closed the week in negative territory after the three largest capitalised equities on the exchange closed in decline notwithstanding the fact that throughout the week activity in these equities far than outpaced the other active shares. The loss for the week amounted to 0.67 per cent as the Index closed yesterday’s session at 3,358.969 points, despite a slight pickup after seven consecutive negative sessions in the last two weeks. During the week under review the local stock exchange was active during four trading sessions due to a public holiday. Turnover in the equity market declined heavily as both trading volume and deals executed fell as four equities gained, four closed in the red, while one equity traded flat.

Transactions across all traded securities declined to 183 deals for a total value of over Eur3.5m. In the equity market, trading volume amounted to 91,284 shares dealt across 63 transactions. In the Corporate Bonds market turnover went up to Eur888,532 as 59 deals of 914,530 nominal were executed. In the Government Stocks market 60 transactions of 1m nominal were traded, while in the Treasury Bills market one single transaction was recorded for a value of Eur1.2m.

For the second consecutive week Bank of Valletta plc was the worst performer. The equity lost 2.9 per cent or Eur0.091 to end the week at Eur3.049. Hence in the last two weeks BOV lost a hefty Eur0.201 while during the second quarter of the year the share price declined by over six per cent. Trading volume also declined as 21,872 shares were traded across 25 transactions. The gains enjoyed by this equity since the beginning of the year have now been eroded due to constant price declines, with the equities performance now standing 1.52 per cent in the red.

HSBC Bank Malta plc edged minimally lower for the second week in succession. The Bank recorded a 0.35 per cent loss on Monday, it closed flat the following two sessions, while it failed to record any deals during yesterday’s session. A total of 21,410 shares were dealt across 20 deals as the equity’s price fluctuated between a low of Eur2.821 and a high of Eur2.84, but closed at Eur2.83.

Despite the negative trend experienced by the two major banks, FIMBank plc which was the week’s other active financial equity, moved 4 per cent in positive territory. Three transactions of 15,000 shares were executed during Monday’s session, with the final deal going through at the week’s highest price of $1.04.

During the second quarter of the year financial equities’ performance, which make up the largest sector on the local exchange, worsened as nearly all active equities declined in value. The only exception was Middlesea Insurance plc shares which rebounded strongly from their negative start to the year. In fact as at the end of June 2010, the equity is up by 40 per cent.

Meanwhile, the third equity which contributed to this week’s decline was International Hotel Investments plc (IHI) which lost 2.32 per cent or Eur0.019 to close the week at Eur0.80. The equity was the week’s most liquid with over 25,000 shares changing hands over seven transactions.  

GO plc added further gains as the equity managed to move up by 4.32 per cent or Eur0.08. Lately the equity experienced a series of negative price movements, which for the second quarter amounted to nearly 13 per cent. However, during the last two weeks the telecommunications company gained Eur0.11. This week’s gain was backed up by 3,700 shares dealt across four transactions.

In the IT Sector two equities were active.  Crimsonwing plc gained 4.55 per cent or Eur0.02 to end the week at Eur0.46 on a single deal of 2,200 shares. With this gain the equity managed to erase the loss experienced during the second quarter. Meanwhile, another transaction in Loqus Holdings plc of 1,000 shares appreciated the price by Eur0.06 to Eur0.21.

Malta International Airport plc traded flat during Thursday’s session as one single deal of 610 shares was executed at Eur1.62. The equity’s gain for the second quarter amounted to nearly 4 per cent.  MIA continues to be one of the best performers this year as gains for the year amount to 35 per cent.

Medserv plc lost 0.7 per cent or Eur0.03 to close the week at Eur4.25. However, this loss was only backed up by an insignificant trading volume as 220 shares were traded on a single deal. As at the end of the second quarter the equity’s share price barely changed as the equity managed a slight gain of 0.73 per cent.

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].