MSE

Trading Report for week ending December 23, 2010

Three

week positive run on the MSE

The Malta

Stock Exchange Index gained for the third consecutive week to reach 3,642.133

points, a weekly improvement of 2.39% and an accumulated gain of 4.86% since the

start of December. This week’s surge was backed by significant upward moves in six

equities, one of which having a very large market capitalisation. Trading

volume was one of the highest recorded during this year with slightly over

1,066,700 shares exchanging hands over 206 deals notwithstanding the

holiday-shortened week. Thirteen equities were traded yet the bulk of all this

trading was concentrated on the two main banks and two other equities. Only two

equities lost some value with the remaining five equities ending the week

unchanged.

FIMBank plc

equities took the lion’s share of this week’s trading with nearly half of the

million and over shares traded this week. Indeed, a total of 510,329 shares

were exchanged mostly during Thursday’s session. The price however was kept

largely unchanged at $0.95.

On the other hand, significant trading in International Hotel Investments plc —

nearly 204,000 shares – led to a strong bounce in this equity’s share price. This

followed an announcement last Friday stating the Company’s intention to issue

new shares by way of a Public Offering on a major international stock exchange

as soon as market conditions are right. In fact, this large jump in share price

occurred primarily during Monday’s session which saw the price being upped from

Eur0.74 to Eur0.87. Subsequent trading lifted the price even higher to close

the week at Eur0.88. This week’s performance therefore erased nearly four

months of losses and shifted the year-to-date negative performance to a

positive 10%. This share price is still however slightly below its yearly highs

of Eur0.90. Given the large market capitalisation of this equity, this week’s

performance led to a strong boost to the overall Index.

Once again, trading in the two main banks was

quite significant notwithstanding the shorter week. Interest in HSBC Bank Malta plc continued to

increase with slightly more than 93,000 shares changing hands. The share price saw

some muddled price action intra-week ranging between a low of Eur3.06 and a

high of Eur3.10 at which it ended the week unchanged. Following last week’s

improvement, this week the share price saw some slight correction which was

then reversed entirely during the last session.  

On the other hand, Bank of Valletta plc share price movement was much more volatile

with the price initially slumping to Eur3.61 from last week’s closing of Eur3.81.

Thereafter the price somewhat improved however failing to recover all the

damage done. The week therefore ended on a sour note with the share price losing

2.9%. Volume traded amounted to nearly 72,000 shares spread over this week’s four

trading sessions.

Unusually high volume was also the case for

trading in RS2 Software plc with a

total of 60,000 shares exchanging hands at last week’s closing price of Eur0.48.

This equity remains one of the year-to-date losers having shed 13.82 % of its

value since the start of the year.

Malta

International Airport plc share price saw slight volatility during the week as it

traded between a low of Eur1.649 and a high of Eur1.66. However both buyers’

and sellers’ actions were nullified as the share price ended the week unchanged

at Eur1.65. Trading amounted to a decent 34,880 shares.

MaltaPost

plc

share price managed to climb slightly higher this week, again hitting the

yearly high level of Eur0.95 reached only some weeks ago. Volume traded in this

equity however was slightly disappointing when compared to usual trading

amounts with volume totalling 20,083 shares. This equity is one of this year’s

top performers on the local stock exchange having soared 35.7% since the start

of January.

Middlesea

Insurance plc

continued its downward trend started some weeks ago, shedding a slight 1.86%,

falling from Eur1.02 to Eur1.001. Volume however was uninspiring with 15,687

shares traded over three sessions.

Contrasting the above, low volume resulted in

improved prices for both GO plc and Plaza Centres plc with the former

gaining 1.58% and the latter improving by 2.42%. In a company announcement

issued this week, GO plc announced that Forgendo Limited (the joint venture

company between GO plc and Emirates International Telecommunications (Malta)

Limited) has acquired a further 32,296 shares in Forthnet S.A issued share

capital.

This week Island Hotels Group Holdings plc share price recorded a stellar

performance, shooting up by an impressive 12.5% on a volume of 6,600 shares.

Similarly, yet on a negligible 100 shares, Lombard

Bank plc saw its price climb 9.33% to end the week at Eur2.80. Both these companies’

share prices are still however in negative territory on a year-to-date basis.

Medserv

plc

ended the week unchanged at Eur4.27 on fourteen trades of just over 29,100

shares.

Santumas

Shareholdings plc

issued their interim report and interim financial statements for the six-month

period ended October 31, 2010. The loss after tax for the period was Eur81,517 against

a profit of Eur295,878 for the corresponding period in 2009. The company announcement

stated that the loss, being principally an unrealised loss, is a direct consequence

of the inherent volatility in equity markets which at present appear to have no

real direction. The announcement also states that in the absence of a real

return to stability it is likely that in the short term the equity holdings

will continue to experience inconsistent fluctuations from period to period.

Contrasting to the heavy volume in equity

trading, local corporate bond

trading was somewhat subdued this week, with a total market value of slightly

over Eur368,000. Bond prices were also generally unchanged week-on-week.

This week Hotel San Antonio plc issued an announcement stating that the

Company is inviting all holders of its outstanding 7.5% Bonds 2012, to offer

their Bonds for sale to the Company from and including December 22, 2010 to

January 5, 2011 at the price of Eur102 per Bond. Bond holders accepting this

offer will also receive accrued interest on January 26, 2011.

Trading in Malta Government Stocks amounted to nearly Eur988,000 in market

value with price action remaining very similar to that of the past weeks. In

other words, price movements continued to be mixed yet any losses or gains

achieved were minimal overall. The bulk of this week’s trading occurred in the

7.8% MGS maturing in 2018.

 I wish all readers a Prosperous New Year.

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 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 67/3, South Street, Valletta or

on Tel: 21224410 or email [email protected]