MSE Trading Report for week ending August 27, 2010

EUR 20 million traded in Malta Government Stocks

The Malta Stock Exchange Index moved back in positive territory with a slight increase of 0.12 per cent on the week. Throughout the week turnover in the equity market reached a low for the current month as investors’ attention was once again focused on the fixed income market, where turnover surged to nearly Eur20m, up from Eur2.9m traded last week. In the equity market, Middlesea Insurance plc shares were the top performers out of the nine active equities. In total four equities gained, three slipped lower, while another two closed the week unchanged.

Turnover across all traded securities leaped forward by over Eur18.7m fuelled by heavy trading in the Government Stocks market, where a total of 323 deals of 19m nominal were executed. In the Equity market turnover amounted to Eur370,600 over 91 transactions, while 121 deals in the Corporate Bonds market were executed for a total value of Eur2.5m.

Middlesea Insurance plc closed the week under review with a 6.8 per cent or Eur0.07 gain as it closed the week at Eur1.10. The insurance firm was only active in Monday’s session, during which 9,671 shares were traded over three transactions.

Conversely, HSBC Bank Malta plc was the only financial equity to close the week in the red. In fact the Bank lost 1.03 per cent or Eur0.03 as it closed the week at Eur2.87, having traded at a high of Eur2.91. Twenty deals of 24,696 shares, down from 31,418 shares traded last week were executed. This week’s decline worsens further the equity’s year-to-date position which now stands over 11 per cent in negative territory. On Tuesday the Bank paid out an interim net dividend of Eur0.051 per share.

Meanwhile, following some mixed sentiment throughout the week Bank of Valletta plc shares managed to move higher by 1.23 per cent. The equity kick started the week on a positive note, however on lower trading volume the equity lost its gains as it traded at a low of Eur3.24, while it managed to recoup all of these losses as it closed yesterday’s session at Eur3.30. On the week trading value declined to Eur122,062 as 36 deals of 37,460 shares were executed.

Lombard Bank plc failed to register a change in price despite positive half-yearly results announced on Tuesday. In fact the Bank reported that the Group registered a rise of 6.0 per cent in its Profit after tax, from Eur4.09 million to Eur4.33million. Earnings per share increased marginally from Eur0.104 to Eur0.110. The Board announced that no dividend will be paid. Throughout the week 2,630 shares were dealt across three deals as the equity’s price barely fluctuated, closing the week at Eur2.80.

On the negative side, Malta International Airport shares were the heaviest fallers having lost 1.27 per cent. This was the third negative week in succession by the airport operator as the equity’s price now stands at Eur1.56. The equity was the week’s most liquid equity as a total of 51,318 shares, up from 27,753 shares traded last week, were dealt across 16 transactions.

Meanwhile, MaltaPost plc edged slightly higher following last week’s hefty loss of nearly nine per cent. The postal operator was only active during the week’s opening session, where 5,000 shares were dealt over two deals. The equity’s price fluctuated slightly as the last deal of the week was executed at Eur0.825, resulting in a 0.61 per cent gain.

Simonds Farsons Cisk plc (SFC) was also active on Monday following two weeks during which no trading in the equity was recorded. SFC shares traded flat as one transaction of 840 shares was executed at Eur1.80. On Friday the company announced that the Board of Directors has resolved to redeem its outstanding 6.6% 2010-2012 Bond issue, on November 2, 2010. The Bond will cease trading on October 8, 2010 and bondholders appearing on the register as at close of business on October 15, 2010 will receive payment of principal and interest for the year.

Throughout the week GO plc shed 0.53 per cent as Wednesday’s 1.07 per cent gain was not enough to outpace the losses recorded in the previous two sessions. A total of 7,680 shares were traded over five transactions. The equity’s price now stands at Eur1.89, ten per cent down since the beginning of the year.

Meanwhile, during yesterday’s session on unusual trading volume Plaza Centres plc gained 1.23 per cent to end the week at Eur1.65. A total of 36,000 shares were dealt across five transactions.

On Thursday, Global Capital plc published its half-yearly report for the period ended June 30, 2010. The Company registered a net loss after tax of Eur1.4m for the first six months of the year, which compares favourably to a loss of Eur2.2m for the corresponding period in 2009. The Directors did not recommend the payment of an interim dividend. The company also announced that it will dispose of its shares in Metropolis Development Ltd. This disposal is to be made for a total consideration of over Eur3.8m while the transaction is expected to be concluded before the end of September 2010.

6pm Holdings plc also reported that the group registered a loss before tax of £209,729 for the first six months of 2010. The directors did not recommend the payment of an interim dividend.

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]