MSE Trading Report for week ending July 16, 2010

MSE Index up, as BOV and HSBC shares surge

The Malta Stock Exchange (MSE) Index managed to keep the upbeat which it enjoyed last week, led mainly by positive performance from the two major banks. The Index has now recovered lost momentum as it closed the week at 3,482.328 points, 2.55 per cent up on the week and a 0.63 per cent gain year-on-year.  On Monday the Index kicked off on a high note with a 2.528 per cent gain, however retreated some of the gains in the following two sessions, but returned to gains during the last two sessions of the week. Investors’ main focus was on financial equities as all listed financial equities listed were active. Throughout the week eleven equities were active as five gained, five closed flat, and one equity closed lower.

Transactions across all traded securities amounted to 369 deals for a total value of Eur3.24m. In the equity market 186 deals were executed for a total value of Eur497,523 over a significant increase in liquidity. In the Corporate Bonds market 1.4m nominal was dealt across 128 deals for a total value of over Eur1.3m. In the Government Stocks market 55 transactions of over 1.3m nominal were traded, for a total value of Eur1.4m. No trading took place in the Treasury Bills market.

Following last week’s gain Bank of Valletta plc (BOV) shares moved further in positive territory. This week the Bank was the best performer having moved higher by 5.57 per cent, to end the week at Eur3.24. Liquidity in the banking equity declined slightly to 36,628 shares dealt across 57 transactions. Over the week BOV’s price hovered between a low of Eur3.15 and a high of Eur3.251.

HSBC Bank Malta plc moved in line with its peer, having gained 4.09 per cent as it closed yesterday’s session at Eur3.029. The equity was the most liquid for the week with a total of 77,123 shares changing hands across 52 transactions. Despite two consecutive positive weeks the equity’s performance since the beginning of the year remains over 6 per cent down.

Meanwhile GO plc managed to recoup all of last week’s losses as the equity moved up by 1.58 per cent or Eur0.03 to close the week at Eur1.93. GO was active during three trading days, two of which it closed flat, while managing to move higher yesterday as one deal of 1,000 shares was executed.

The only equity to end the week on a negative note was MaltaPost plc which plunged by 5.18 per cent. However, this decline was brought about by only two deals of just over 3,000 shares. Hence the postal operator closed the week at Eur0.806.

Middlesea Insurance plc failed to record a change in price this week as it ended the week at Eur1.15. On Monday the insurance firm edged 0.17 per cent lower, a loss which it recouped the following day across 500 shares dealt over one transaction, while  on Friday the equity closed at last week’s closing price despite having traded lower during the session. Yesterday the company announced that the Board of Directors is scheduled to meet on August 12, 2010 to consider and approve the financial statements for the half-year ended June 30, 2010.

Meanwhile Lombard Bank plc closed the week in positive territory with a 0.87 per cent gain. The Bank was active during the opening two sessions, during which two deals of only 860 shares were traded, with the equity gaining 0.14 and 0.73 per cent respectively to end the week at Eur2.91. Meanwhile, FIMBank plc closed unchanged on the week at $1.05. A total of 5,300 shares were active as the equity’s price fluctuated between a low of $1.02 and a high of $1.05.

On Tuesday Global Capital plc shares returned to the trading platform after an absence of nearly four months. A thin trade of 370 shares was executed which left the equity price unchanged Eur1.50.

Similarly, Malta International Airport (MIA) closed unchanged at Eur1.58. The equity seemed to be heading for another weekly loss following last week’s 2.47 per cent decline, however on Friday over significant trading volume MIA shares moved 1.28 per cent higher. This increase in price came about as on Thursday the airport operator announced that the company registered an increase of 19.3 per cent in passenger movements for the month of June. Passenger movements for the first six months of the year increased by 10.3 per cent when compared to the same period last year. The firm’s outlook for the end of the year remains positive with an estimated increase in passenger movements of 8 per cent over the previous year.

Island Hotels Group plc (IHG) closed the week with a slight gain amounting to 0.1 per cent or Eur0.001 to end the week at Eur0.999. The equity was only active during the first two trading sessions with a total of 7,000 shares being dealt over six transactions. IHG’s year-to-date performance is 1.09 per cent in the red.

On Monday, Mediterranean Investments Holdings plc announced that subscription lists to the new 7.15% MIH plc 2015-2017 Bond Issue closed immediately due to heavy over-subscription. As a result, the issuer exercised its over-allotment option of Eur10m and hence brought the total issue to an aggregate amount of Eur40m.

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].