Financials drag Index down


Trading Report for week ending January 7, 2011


drag Index down

The Malta Stock Exchange Index opened the first week of trading in 2011

with an all week negative performance, having closed at 3,694.277 points.  The index registered a decline of 2.3 per

cent thus erasing almost all of last week’s gains, with declines ranging

between 0.084 per cent and 1.361 per cent.

Negative moves were registered in most

active equities. In fact, only two equities gained ground this week, while

eight closed in negative territory and Malta

International Airport plc remained flat. Turnover in the equity market amounted to 510,709

shares across 205 deals, up from last week’s 367,986 shares

over 146 deals, with half of total trading executed in HSBC Bank Malta plc shares.

Turnover in the Government Stock market rose from Eur716,687 across 56 transactions

to Eur1.36m over 83 deals, as trading was focused on the 5.25% MGS 2030 (I) issue. Meanwhile, in the Corporate Bonds market turnover also increased, reaching a value of

Eur596,621 traded over 81 trades. A single trade was registered in the Treasury Bill market for a value of Eur949,818.


Holdings plc was the worst performer this week having

lost 20 per cent, to close at Eur0.16, although this drop was only backed by a

single trade of a mere 300 shares.

A negative week characterised

the financial sector, as all equities traded registered declines. Bank of Valletta plc (BOV) shares

suffered the worst loss as its share price fell by 4.1 per cent, to end the

week at Eur3.70, after last week’s rise of 4.27 per cent. The equity only

managed a 0.78 per cent gain on Monday, while registering its heaviest fall of

1.86 per cent on Friday. BOV shares traded at a high of Eur3.899 and a weekly low

corresponding to the closing share price, as 96,394 shares were traded over 91

deals. Shares bought in this equity up to and including Friday’s session were

entitled to the bonus share issue of one share for every five shares held.

Similarly, HSBC Bank Malta plc (HSBC) registered a decrease of just under 1.7 per cent in its share price. This

equity registered declines from Monday to Thursday only managing a gain of 1.27

per cent yesterday. HSBC’s share price closed at Eur3.20, as 255,081 shares

changed hands across 57 deals.


Bank plc shares fell by 0.71 per cent on Wednesday,

closing at Eur2.78, with 1,500 shares traded on a single deal. Likewise, Middlesea Insurance plc shares shed

1.48 per cent, as its share price closed at Eur1.00. A total of eight deals

were registered, consisting of 19,440 shares, as the equity registered declines

of 0.59% and 0.89% on Monday and Wednesday respectively, while closing

unchanged the following session.


Hotel Investments plc share price lost ground this week, registering

a steep loss of 4.76 per cent on Wednesday, while trading unchanged yesterday. The

share price ended the week at Eur0.90, as nine deals of 53,940 shares were


Meanwhile, Malta International Airport plc shares closed unchanged at Eur1.66,

as 17,391 shares were executed across 10 trades. Island Hotels Group Holdings plc continued last week’s positive

streak, as it appreciated by a further 4.21 per cent on Tuesday, closing the

week at Eur0.99, with 5,000 shares being exchanged on two transactions.

In contrast, Simonds Farsons Cisk plc is on its second consecutive weekly loss,

as it edged 1.18 per cent lower on Wednesday, closing at Eur1.68, down Eur0.02,

as 2,333 shares changed hands over two trades.


plc was the other equity to gain ground this

week, having risen by a marginal Eur0.005 or 0.26 per cent, as its share price

closed at Eur1.94 as 11 transactions of 15,400 shares were executed.


plc shares ended the week at Eur0.99, down one

per cent from last week, having registered no price movements from Tuesday to

Thursday. A total of 43,930 shares changed hands on 13 deals.

On Wednesday, the Company announced

the annual results for the year ended September 30, 2010. Revenue for the

financial year rose marginally from Eur20.1m to Eur20.4m. Profit before tax

also increased slightly, to reach Eur3.2m while earnings per share remained

static. The Board of Directors also resolved to recommend the approval of the

payment of a final ordinary net dividend of Eur0.04 per nominal Eur0.25 share

to be paid on February 11, 2011 to shareholders on the Company’s Register as at

January 7, 2011.

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]