MSE Trading Report for week ending January 14, 2011

HSBC and IHI shares boost MSE Index

The Malta Stock Exchange Index returned to positive territory following an all positive week posting a 4.75 per cent gain as it closed the week’s final session at 3,869.771 points. This week’s gain was fuelled by sharp rises in the share price of the top three most highly capitalised equities, with HSBC Bank Malta plc (HSBC) and International Hotel Investments (IHI) shares leading the pack.

The positive momentum enjoyed since the beginning of the week was spread across various equities as seven closed higher, four closed in negative territory while three closed unchanged. Turnover in the equity market increased heavily with over EUR1.7m in value traded across 293 deals of 974,548 shares, up from 510,709 shares traded last week. As is usually the case, trading in the banking sector outpaced all other sectors with IHI shares being the most traded equity.

Turnover in the Government Stocks market more than doubled as over EUR1.45m was traded across 1.3m nominal dealt across 91 transactions. Investors’ attention remained focused on the 5.25% MGS 2030 (I) issue. Meanwhile, in the Corporate Bonds market activity declined slightly to EUR586,894 as 25 issues were traded. Running yields increased following a week-on-week decline in the majority of the traded corporate bond prices. A single trade was registered in the Treasury bill market for a value of EUR245,942.

Throughout the week, HSBC shares gained an overwhelming 9.37 per cent or EUR0.30 as the banking equity closed the week at EUR3.50. Turnover in the equity reached EUR719,152, the highest for the week as 85 deals of 208,767 shares were executed. HSBC closed the opening three sessions in the green with gains ranging from 2.2 per cent up to 4.5 per cent while closing the remaining two sessions flat at EUR3.50.

IHI shares more than recouped last week’s decline extending its gain by 8.89 per cent or EUR0.08. The equity was the most heavily traded for the week as 320,708 shares were dealt across 24 deals as the it’s price hovered between a low of EUR0.90 and a high of EUR0.98, this week’s closing price.

Bank of Valletta plc also ended the week on a positive note having registered a 2.17 per cent or EUR0.067 gain. On Monday the equity’s price adjusted to reflect the bonus share issue of one share for every five held, hence kicking off the week at EUR3.083. The Bank’s share price closed the first three sessions in the green, reaching a weekly high of EUR3.20, however slipped in negative territory in the last two sessions, to end the week with a 2 per cent gain at EUR3.15.

Meanwhile both Lombard Bank plc and FIMBank plc failed to keep up with the upbeat enjoyed in the financial sector. The latter closed 3.16 per cent lower as it ended yesterday’s session at USD0.92. Trading volume was the second highest for the week with over 224,246 shares changing hands across 12 deals. Similarly, Lombard Bank plc shares declined further to EUR2.75, hence losing over 1 per cent. Activity in the equity remained on the low side as 5,270 shares were traded over seven transactions.

Middlesea Insurance plc share price ended the week 5 per cent higher as the insurance firm’s equity climbed to EUR1.05 during this week’s final session. Over the week six deals of 15,251 shares were executed.

GO plc shares ended the week flat at EUR1.94 as the equity’s price barely fluctuated between a low of EUR1.93 and a high of EUR1.94 as 21,700 shares were dealt across 10 transactions. Likewise, Simonds Farsons Cisk plc shares traded unchanged at EUR1.68 as one deal of 323 shares was recorded during the mid-week session. Another deal in Plaza Centres plc of 7,000 shares left the equity’s price intact at EUR1.69.

In the IT Sector, Loqus Holdings plc lost further ground following last week’s hefty loss. On Tuesday the equity shed over 6 per cent as one transaction of 1,212 shares was executed, to close at EUR0.15. Similarly, RS2 Software plc share price closed in the red with a 4.17 per cent or EUR0.02 decline as 4,000 shares were traded over three deals.

Conversely, MaltaPost plc managed a slight gain of just over 1 per cent to end the week at EUR1 moving higher on Monday while trading flat thereafter as 22,232 shares were dealt over 12 deals.

Similarly, Malta International Airport plc closed up by 0.6 per cent ending the week at EUR1.67. Turnover remained more or less in last week’s territory as a value of just over EUR30,000 was traded over 10 transactions.

Island Hotels Group Holdings plc also managed to end the week in positive territory with a meagre gain of EUR0.008 or 0.81 per cent to close at EUR0.998. On Thursday, the equity plunged by over 9 per cent on one deal of 1,000 shares, but recovered swiftly on Friday as it gained nearly 11% on 1,350 shares.

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]