IHI shares up by 7.14 per cent

MSE Trading Report for week ending August 13, 2010

IHI shares up by 7.14 per cent

The Malta Stock Exchange Index returned back in positive territory with a meagre 0.59 per cent gain on the week, boosted by positive performance by International Hotel Investments plc shares, which were this week’s only gainers. Three negative trading sessions were not enough to wipe out all of the gains recorded in another two trading days. Investors’ pessimistic outlook towards financial equities weighted down on the Index performance as three closed in the red, while one equity closed unchanged.  Throughout the week investors’ attention was focused on the equity market, while activity in the fixed income market declined. Out of the twenty equities listed on the local stock exchange only half  traded this week with one equity gaining in value, five closed lower, and four closed flat.

Across all traded securities, transactions declined to 289 with turnover reaching almost Euro3m.  In the equity market 115 deals of 576,761 shares were executed for a total value of Euro742,404. In the Government Stocks market turnover reached over Euro1.3m across 67 deals. In the Corporate Bonds market 107 deals for a total value of Euro0.9m were executed. No trading took place in the Treasury Bills market.

Backed up by significant trading volume International Hotel Investments plc (IHI) shares surged by 7.14 per cent on the week. All of these gains were recorded on Thursday’s session across 33,975 shares, while it traded flat yesterday as 26,291 shares were executed. Following last week’s declined, the equity returned back to the Euro0.90 level to bring its positive year-to-date performance to over 12 per cent.

The negative outlook which bordered financial equities last week continued through out the past week as none of the active equities gained. Middlesea Insurance plc shares closed lower by 1.9 per cent after having started the week with a gain of almost 5 per cent. However, during the mid-week session across 6,050 shares the equity plummeted by over 6 per cent to end the session at Euro1.03, the price at which it closed yesterday’s session. Trading value increased significantly to Euro18,107 across seven deals of 16,869 shares. On Thursday, the Board of Directors of Middlesea Insurance plc approved the unaudited financial statements of the Group for the year ended June 30, 2010. The Group registered a profit before tax of Euro3.2m, compared to a loss of Euro18.4 in the corresponding period last year. The Board of Directors did not recommend the payment of an interim dividend.

Similarly, HSBC Bank Malta plc closed lower by 1 per cent as it finished the week at Euro2.97. Trading volume declined to 19,510 shares dealt across 17 deals. Throughout the week the equity failed to move higher as it closed lower during two sessions, flat on another two, while no trades took place on Wednesday.

Although Bank of Valletta plc shares seemed to be heading to another weekly gain, the equity failed to keep up to last week’s positive performance, having lost significant ground during the last trading day on seven thin trades. In fact Friday’s 1.21 per cent decline were enough to erode the gains recorded in the previous two sessions as the equity closed at Euro3.26, 0.61 per cent lower on the week. This week trading volume increased to nearly 60,000 shares dealt across 48 deals.

FIMBank plc shares were the only non-movers out of the financial equities, despite having traded at an all time low of $0.95 during the opening session of the week. The equity was the week’s most active with over 366,000 shares changing hands over five transactions, as it closed the week at $0.98.

In the IT sector Loqus Holdings plc lost 4.76 per cent over one deal of 3,548 shares as the price declined from Euro0.21 to Euro0.20. Meanwhile, on Tuesday RS2 Software plc announced that the Group registered a rise of 5.7 per cent in revenue for the six months ended June, 30 2010. Profit before tax increased to Euro78,055, up from a loss of Euro9,159 in 2009. The Directors did not recommend the payment of an interim dividend.

Meanwhile, Malta International Airport plc (MIA) shares closed down by 1.17 per cent following a negative week where no gains were recorded in any session during the week. On Monday the equity started the week flat at Euro1.62 but it declined in another two sessions to finish at Euro1.601. Trading value declined heavily from nearly Euro71,000 traded last week to Euro20,800. MIA’s year-to-date performance is still up by a healthy 33.42 per cent.

GO plc closed again flat at Euro1.90 as 13 deals of 11,300 shares were executed. On Tuesday the company announced that the Board of Directors is scheduled to meet on Tuesday August 31, 2010 to discuss the Group Interim Unaudited Financial Statements for the six month period ended June 30, 2010.

On Monday, both Grand Harbour Marina plc and Medserv plc traded unchanged. Medserv closed the week at Euro4.28 as nearly Euro90,000 traded over one deal of 20,800 shares, while the former closed the week at Euro1.96 as one deal of 5,600 shares was executed.

This article, which was compiled by Jesmond Mizzi, Joint Managing Director of Atlas JMFS Investment Services Limited, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. 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 Atlas JMFS at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected].