MSE Index just shy of its 2010 low

MSE Trading Report for week ending October 8, 2010

MSE Index just shy of its 2010 low

Following a five day negative trading streak, the Malta Stock Exchange Index (MSE) slipped 1.44 per cent lower to end the week at 3,346.752 points, which is just shy of its 2010 low of 3,341. Outlook towards financial equities remained rather mixed with three equities closing lower, while another two gained ground. Turnover in the equity market increased significantly fuelled by a considerable trading surge in the two major banks, while a sharp decline was recorded in the fixed-income market. In fact a significant drop was recorded in the Government Stocks market where turnover reduced to Eur9.2m, down from over Eur19m traded last week. A total of 13 equities were active throughout the week with three closing higher, five ending in the red, while another five closed flat.

In the equity market, turnover reached Eur626,347 as 168 deals of 332,942 shares were traded, up from 249,513 shares traded last week. In the Corporate Bond market a total of 75 deals, worth Eur468,060 were recorded while in the Treasury Bills market over Eur2.6m were traded across one deal. In the Government Stock market 24 issues were active with the majority of them closing lower on the week.

Given its high capitalisation on the local stock market International Hotel Investments plc (IHI) was the main contributor to this week’s decline. The equity plunged by almost six per cent to end the week at Eur0.80 as over 56,000 shares were traded across 13 deals. On the week turnover increased significantly to Eur45,120.

In the financial sector, FIMBank plc shares failed to keep up with last week’s positive performance as the banking equity closed 3.03 per cent lower. Trading volume in the Bank was the highest for the week as over 70,000 shares were dealt across 10 transactions. The equity’s price fluctuated between a low of $0.95 and a high of $0.99 while it closed yesterday’s session at $0.96. The equity’s performance year-to-date is down by nearly 13 per cent. On Friday, the company announced that the Listing Authority had approved the Prospectus in respect of the Bond Issue of 4.25 per cent maturing in 2013 and also authorised the admissibility to listing of the Bonds on the Official List of the MSE.

Conversely, Middlesea Insurance plc emerged as the overall best performing equity despite a disappointing performance in the third quarter. The insurance firm gained 2.15 per cent or Eur0.02 on Tuesday having closed the session at Eur0.95. Nevertheless, trading volume was rather weak as only one deal of 1,658 shares was executed.

Meanwhile, Bank of Valletta plc shares moved further in positive territory, recording a gain of 0.93 per cent or Eur0.03 to end the week at Eur3.27. Activity by far outpaced the other traded equities as over Eur227,000 was traded across 56 deals of 69,477 shares. Despite the Index’s negative week the Bank managed to close three sessions in positive territory while some gains were pulled back in the remaining two trading days.

HSBC Bank Malta plc shares closed the week lower by 1.75 per cent following a negative start to the week. In fact during the first two sessions of the week, the equity lost 1.23 and 0.71 per cent respectively to close at Eur2.80 while it edged minimally higher on Thursday to finish the week at Eur2.805. As expected, as the equity’s price declined turnover increased, which on the week reached Eur184,338, up from Eur78,751 traded last week.

Lombard Bank plc also closed in the red having edged slightly lower with a 0.04 per cent decline to end the week at Eur2.739. A total of three deals of 5,064 shares were executed.

Following two negative trading weeks, GO plc shares managed to move higher as the equity posted a 1.09 per cent or Eur0.02 gain as 5,495 shares were dealt over five deals.

Simonds Farsons Cisk plc also closed on the negative side having recorded a loss of 8.66 per cent or Eur0.155. Three trades executed in the closing two sessions went through at Eur1.73 and Eur1.635, the week’s closing price. Due to this week’s decline the equity’s performance on the year stands at 3.82 per cent in negative territory.

Malta International Airport plc shares failed to record a change in price despite two positive trading sessions. In fact a decline of 1.9 per cent on Friday was enough to eat away gains recorded on Monday and Wednesday as the equity closed the week at Eur1.50. On Monday the equity announced its traffic results for the month of September, which increased by 15.4 per cent over the corresponding month last year. Passenger movements for the first nine months of the year increased by 12.4 per cent when compared to the same period last year.

MaltaPost plc shares traded unchanged at last week’s close of Eur0.90 as three deals of 3,327 shares were registered, while one deal of 115 shares in Medserv plc left the equity’s price flat at Eur4.28. Another four deals in Plaza Centres plc left the equity’s price intact at Eur1.685. Likewise the share price of Grand Harbour Marina plc traded unchanged at Eur1.96 as 5,000 shares were traded on five deals.

This article which was compiled by 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]