MSE

Trading Report for week ending November 26, 2010

Negative

sentiment towards financials prevails

Following a nine-day positive streak at

the end of last week, the Malta Stock

Exchange Index failed to keep up the upbeat having closed four sessions in

negative territory while closing flat mid-week. Financial equities were amongst

the worst performers, the majority of which posted significant losses while MaltaPost plc was the only equity to

move higher this week. On the week, trading volume declined to 315,176 shares

with FIMBank plc taking the lion’s

share. The Index as at yesterday marked 3,489.745 points, down by almost one

per cent on the week.

Across the week, the Corporate Bonds market was relatively

liquid as turnover reached Eur1.36m, nearly half of which took place in the 6.25% Mediterranean Bank plc 2015.

Turnover in the Government Stocks market

also regained some ground despite the downward price momentum experienced

by the majority of the traded issues. In the Treasury Bills market one deal worth Eur0.6m was executed.

Following an absence of nearly three

months Global Capital plc shares returned to the trading platform on

Tuesday with little bliss as the equity lost a hefty 22.11 per cent or Eur0.283.

Thereafter no further trading was executed as the equity ended the week at Eur0.997

on a total of 10,427 shares traded across six transactions.

In the IT sector, RS2 Software plc shares also witnessed a negative performance

having slid by nearly 11 per cent to end the week at Eur0.50 on a single thin

trade of 2,000 shares.

Lombard

Bank plc share price slumped further following last

week’s hefty decline. The Bank’s equity closed the week’s final session at Eur2.57,

a fall of over 3 per cent week-on-week.

HSBC

Bank Malta plc shares failed to consolidate last

week’s positive performance. The Bank’s equity posted a 1.34 per cent or Eur0.04

decline to end the week at Eur2.94 with its share price declining gradually

throughout the week and fluctuating from a high of Eur2.98 down to a low of Eur2.93.

On the week, trading volume declined by nearly 20,000 shares to 29,739 shares

traded across 19 transactions.

Meanwhile trading activity in FIMBank plc remained on the high side

despite a slight decline over last week, with a total of 108,182 shares changing

hands across nine deals. On Thursday, the equity regained ground following a

slight decline early in the week only to return in the red on Friday ending the

trading session at $0.93, a decline of just over one per cent.

In line with other financial shares,

the share price of Bank of Valletta plc,

fall slightly with a 0.54 per cent decline or Eur0.02. The equity’s price

barely changed as it traded between a high of Eur3.70 and a weekly low of Eur3.68,

this week’s closing price. Trading volume declined by more than half when

compared to last week as 58,900 shares were traded. On Friday the Bank

announced the resolutions that will be considered in the next Annual General

Meeting which is to be held on Thursday, December 16 2010.

Middlesea

Insurance plc was the only financial equity not to close

lower as the Insurance firm closed flat at Eur1.05. Four transactions of 5,675

shares were executed. GO plc shares

also closed flat at Eur1.90 as trading volume declined to 24,116 shares over 18

transactions.

The only positive note this week was

the increase in the share price of MaltaPost

plc which moved 2.48 per cent higher with a Eur0.023 gain.  Two deals of 3,034 shares were executed

pushing the equity’s price to the Eur0.95 level.

Conversely, Malta International Airport plc shares returned in negative

territory with a 1.4 per cent decline registered on Thursday over one deal of

2,600 shares. The equity closed flat during the remaining three trading

sessions during which it was active.

Trading activity during the opening and

closing sessions of the week in International

Hotel Investments plc shares left the equity’s price flat at Eur0.77 as

53,300 shares were dealt across five transactions. Grand Harbour Marina plc also traded unchanged at Eur1.98 over two

deals of 1,000 shares.

In the fixed-income markets turnover

increased significantly to over Eur2.3m. In the Corporate Bonds market 25 bonds were traded, of which only four

managed a gain, while another ten closed lower. The 5.35% Bank of Valletta plc 2019  bond was the heaviest faller with a 1.04

per cent decline while the 6.5% Island Hotels Group Holdings plc 2017 — 2019 bond was

the best performer having gained almost 1.5 per cent.

The negative trend experienced lately in

Government Stocks continued to prevail as 16 out of the 19 active issues closed lower while only two

issues managed to move slightly higher. Yesterday, it was announced that the

latest Government Stock issues will be listed on the Malta Stock Exchange with

effect from Monday and that trading in these bonds will commence trading on

Tuesday, November 30 2010.

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]