MSE

Trading Report for week ending January 21, 2011

MSE

Index down as positive sentiment wanes

The Malta Stock Exchange Index failed to keep up

to the upbeat enjoyed last week as it closed this week at 3,835.206 points,

down by 0.89 per cent. The majority of the traded equities closed lower with Plaza Centres plc leading the way, followed

by two financial equities, while Malta

International Airport plc (MIA) shares were the top performers following

the announcement of positive traffic results for last year.

The equity market started off the week

on the upside following a positive performance by HSBC Bank Malta plc (HSBC) shares, while it closed lower in the

subsequent three sessions. On Friday, the Index returned in positive territory,

however the gain was not enough to lift the local stock market for a second

positive trading week. Trading value in the equity market declined heavily from

Eur1.7m traded last week, to Eur965,891 as 500,713 shares were traded across

208 transactions.

Meanwhile activity in the fixed-income

market surged across the board. In fact in the Government Stocks market turnover reached Eur4.2m, up from Eur1.4m

traded last week. Activity was spread over 16 issues with the 7.5% MGS 2011 taking the lion’s share

as over Eur2m changed hands over two deals. Current yields on local Government

Stocks increased further as the majority of the traded bonds dropped in value.

In the Corporate Bonds market activity

increased slightly as a value of Eur622,236 was traded over 81 deals. Two

trades of nearly Eur1.2m were traded in the Treasury bill market.

Plaza

Centres plc was the week’s heaviest faller with a steep

loss of 11.24 per cent or Eur0.19 as it finished the week at Eur1.50 on a mere

three deals of 4,000 shares.

Middlesea

Insurance plc shares also closed on a negative note as the

insurance firm’s equity failed to keep up to last week’s positive momentum. Throughout

the week the equity lost 4.57 per cent or Eur0.048 as 5,205 shares changed

hands over five transactions as the equity’s price hovered between a weekly

high of Eur1.05 and a low of Eur1.002, the week’s closing price.

Similarly, HSBC Bank Malta plc share price shed 2.71 per cent or Eur0.095 as

over 66,000 shares were traded over 50 deals. Turnover in the equity plunged

significantly to Eur226,201, from over Eur719,000 traded last week. The bank’s

equity traded higher during the opening and closing sessions of the week to close

at Eur3.405. The equity’s performance since the beginning of the year stands at

4.61 per cent in positive territory.

Likewise, Bank of Valletta plc (BOV) shares failed to move higher as its

share price dropped by 0.48 per cent or Eur0.015 to finish the week at Eur3.135.

BOV shares kicked off the week on a negative note while it moved higher on

Tuesday, traded flat mid-week and ending the final sessions of the week in the

red. Liquidity in this equity was the second highest this week as 107,371

shares were traded over 105 transactions.

Meanwhile, FIMBank plc shares managed to move against the trend in the

financial sector as the equity posted a 2.17 per cent or $0.02 gain to $0.94.

However there was only one deal of 2,000 shares backing this gain.

Malta

International Airport plc (MIA) shares were the

week’s top performers having gained 4.79 per cent or Eur0.08 to end the trading

week at Eur1.75. The share price of the airport operator started the week flat

while it gained nearly 2 per cent on Tuesday over a surge in activity. It

closed flat in the two sessions that followed while gained just under three per

cent during yesterday’s session. On Wednesday, the company announced its

traffic results for 2010, which showed an increase of 12.8 per cent in

passenger movements when compared to the previous year. Both aircraft movements

and seat capacity increased over 2009 by 10 per cent and 10.6 per cent

respectively. MIA announced that the main markets for the last year were the UK, Italy

and Germany.

Meanwhile in the IT Sector, RS2 Software plc shares shed further

ground following last week’s 4.17 per cent decline. Two deals of 600 shares

worth a mere Eur270 were executed as the equity closed the week at Eur0.45.

MaltaPost

plc finished the week at Eur1 as it traded

unchanged during the week’s opening and closing sessions. The equity was the

most active equity for the week as over 209,000 shares were dealt across 11

deals.

Following last week’s hefty gain International Hotel Investments plc shares

were only active during yesterday’s session as the hotels operator closed

unchanged at Eur0.98. A total of 13,554 shares were traded over three deals as

the price fluctuated between Eur0.95 and Eur0.98.

GO

plc also managed to close flat at Eur1.94 having

recovered from a weekly low of Eur1.90. The equity was active during two

trading days as 13 deals of 40,950 shares worth Eur78,343 shares were executed.

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]