MSE Index down by 2.37% as financials slump
MSE Trading Report for week ending September 3, 2010
MSE Index down by 2.37% as financials slump
Following last week’s gain of just over 0.1 per cent, the Malta Stock Exchange Index slumped by 2.37 per cent to close the week just under the 3,400 level. The Index only managed to move higher than the previous sessions on one trading day, suffering significant losses in the remaining four sessions. Financials were the main drivers to this week’s decline as all listed financial equities closed the week in negative territory. Only three equities managed a gain, with MaltaPost shares heading the list with a staggering 9 per cent gain, while the other eight active equities lost ground.
Turnover across all traded securities declined slightly to Eur20.7m as turnover in the fixed income market declined on the week. In fact, in the Corporate Bonds market Eur1.1m was traded across 86 deals, while in the Government Stocks market turnover reached nearly Eur15m. In the Treasury Bills market three deals of Eur4m were executed across two issues. Meanwhile, in the equity market 133 transactions worth Eur577,057 were recorded.
Following last week’s interim financial results, GlobalCapital plc shares plunged by a hefty 14.67 per cent or Eur0.22 to end the week at Eur1.28. However, this loss was backed by a meagre 240 shares traded over two deals during the mid-week session.
International Hotel Investments plc (IHI) shares followed with a 5.62 per cent or Eur0.05 loss as investors reacted to the company’s interim directors’ statement published on Monday. The Group recorded a loss after tax of Eur9.19m for the first half of the year, which compares negatively to a loss of Eur2.81m registered in the corresponding period of 2009. A total of 20,480 shares were traded across nine transactions throughout the week with the final deal being executed at Eur0.84. Notwithstanding, this week’s decline the equity is still enjoying a five per cent gain since the beginning of the year.
A negligible volume of 354 shares in Middlesea Insurance plc traded on the week’s opening session depreciated the equity’s price by 6.3 per cent, while managing to recoup some of the lost ground on the following trading day. In fact on Tuesday, the equity moved 1.94 per cent higher on abnormal trading volume, which reached 107,500 shares dealt across eight deals. The equity ended the week down by 4.55 per cent at Eur1.05
Likewise, Bank of Valletta plc shares closed the week in decline with a 3.03 per cent or Eur0.10 loss. The equity’s price fluctuated between a high of Eur3.30 and a low of Eur3.20, the week’s closing price, with the bulk of trading taking place in the closing two sessions. Just over 30,000 shares were dealt across 35 deals as turnover reached Eur97,267.
HSBC Bank Malta plc lost further ground as the equity closed the week’s final trading session at this week’s low of Eur2.82, down by 1.74 per cent on the week. Turnover in this equity was the second highest as Eur128,785 was traded over 38 deals of 45,353 shares.
Lombard Bank plc shares moved in line with its larger peers having posted a loss of 1.07 per cent as it closed the week at Eur2.77. A total of 2,370 shares were dealt across seven transactions. Similarly, one deal of 3,800 shares in FIMBank plc dragged the price in negative territory by 0.5 per cent to end the week at $0.995.
Conversely, MaltaPost plc gained 9.09 per cent or Eur0.075 on the week. The equity moved higher for the second consecutive week to end the week at Eur0.90. Trading volume reached 17,298 shares dealt across seven transactions, with the bulk of trading taking place during Wednesday’s session.
Malta International Airport plc (MIA) shares managed to close in positive territory following a negative performance in the previous three weeks. In fact the equity climbed 1.28 per cent to end the week at Eur1.58. The equity was the week’s most traded with over 108,100 shares changing hands over 10 deals. On Friday the airport operator announced the traffic results for the month of August 2010. MIA said that passenger movements throughout the month reached an all-time high of 427,924, an increase of 13.4 per cent when compared to the corresponding month of last year. MIA announced that results for the first eight months of the year, in terms of passenger movements, show an increase of 11.9 per cent when compared to the same period last year.
On the contrary, GO plc lost 1.06 per cent to end the week at Eur1.87 as 14 deals of 12,505 shares were executed. On Tuesday, August 31, 2010 the company issued its interim results for the first six months of the year which show an operating profit of Eur11.2m, however, the Group reported a loss after tax of Eur5.2m compared to a loss of Eur4.86m for the same period in 2009.
Meanwhile, one deal of 500 shares in Simonds Farsons Cisk plc elevated the price by a minimal 0.06 per cent to end the week at Eur1.801.
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]