MSE

Trading Report for week ending February 18, 2011

MSE

Index down for the third successive week

The Malta Stock Exchange Index (MSE)

extended its negative run to three consecutive weeks with a drop of 1.36

per cent, the second heaviest fall since the start of the year. Amongst this

week’s losers were the top four companies by capitalisation, along with Malta International Airport plc (MIA) shares

which contrary to last week headed the list of fallers. Meanwhile, only three

equities managed a gain led by MaltaPost

plc shares, which reached an all-time high.

Turnover in the equity market declined

significantly to nearly Eur1.3m, down from over Eur3m traded last week. Bank of Valletta plc (BOV) shares were

again the most traded, followed by HSBC

Bank Malta plc (HSBC) and GO plc respectively.

Throughout the week, out of the 11 active equities, seven lost ground, three

gained while MIDI plc traded flat at

Eur0.45.

In the fixed-income market activity

declined across the board as a total value of slightly over Eur3m was traded,

down from Eur6m traded the previous week. In the Corporate Bonds market 80 deals worth Eur438,171 were executed,

while in the Government Stocks market over 2.5m nominal was traded across 79

transactions. In the Treasury Bills

market two deals of Eur171,322 were recorded.

MIA

shares suffered the steepest loss as the equity nullified

last week’s gain shedding a hefty 5.41 per cent or Eur0.10 closing Friday’s

session at Eur1.75. On the week, turnover increased slightly as 39,526 shares

were dealt across 18 deals for a total value of Eur70,933. Yesterday, MIA

announced that the Board of Directors is scheduled to meet on March 17, 2011 to

consider and approve the company’s Financial Statements for the year ended

December 31, 2010. The Board shall also consider the declaration and

recommendation for the payment of a dividend.

International

Hotel Investments plc shares followed the same trend with a

3.1 per cent decline as the equity closed the week at Eur0.94, after having

traded at a weekly high of Eur0.97. Turnover in the hotels’ operator declined

heavily to 11,000 shares dealt across three transactions.

GO

plc shares lost further ground with this week’s

loss amounting to over 2 per cent as the equity closed yesterday’s session at Eur1.859.

The equity kicked off the opening two sessions in the red trading at a weekly

low of Eur1.80, retracting some of these losses during the mid-week and final

session, these gains however were insufficient to end the week higher.

Out of the financial equities active

this week, BOV shares were the worst

performers having shed 1.61 per cent or Eur0.049 as the Bank traded between a

weekly high of Eur3.06 and a low of Eur3, the week’s closing price. Throughout

the week the equity was the most liquid with nearly 172,000 shares changing

hands over 112 transactions. Following its recent declines, BOV’s share price year-to-date

stands at 6.7 per cent in negative territory.

Similarly, HSBC shares also closed in the red with a 0.58 per cent or Eur0.02

decline. The Bank ended three trading days in negative territory, closed flat

on Thursday, closing higher only on Tuesday when 107,000 shares were dealt over

12 deals. Across the week, a total of 124,000 shares were traded as turnover

totalled Eur434,680. After close of yesterday’s trading session, the Board of

Directors approved the annual results for the year ended December 31, 2010

which showed an increase in profit before tax of Eur83.1m, hence up by 16.7 per

cent on the previous year. The Board also declared a final gross dividend of Eur0.07,7

per share or a net dividend of Eur0.05, which will be paid on April 21, 2011 to

shareholders who appear on the Bank’s Register of shareholders at March 8,

2011.

Conversely, Middlesea Insurance plc gained almost 1 per cent as the equity closed

the week at Eur1.05, after having traded at a weekly high of Eur1.07. Likewise,

Lombard Bank plc shares closed

higher by a meagre 0.33 per cent, to end the week at Eur3.01.

MaltaPost

plc maintained its positive momentum as the

postal operator’s equity reached a new all-time high closing the mid-week

session at Eur1.10, and closing flat thereafter. This week’s gain totals 2.8

per cent or Eur0.03 as 10,643 shares were dealt over eight deals. Year-to-date

the equity is the best performer with a 10 per cent gain.

In the IT Sector, Crimsonwing plc was the only active equity. The company edged

minimally lower with a 0.26 per cent loss to close the week at Eur0.379 on a

single deal of 4,000 shares.

Similarly, Plaza Centres plc shed 1.2 per cent as the equity ended yesterday’s

session at Eur1.65 after trading flat at Eur1.67 during the week’s opening

session.

Late on Friday, the Treasury of Malta stated

that a total of 6,052 applications and bids having a total value of over Eur326m

were received in the latest Government Stock issue. The authorised sum on issue

of Eur120m plus an additional Eur80m was allotted as follows, Eur107.8m to

members of the public and Eur92m to financial institutions thus satisfying in

full subscriptions made by members of the public.

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]