MSE

Trading Report for week ending February 25, 2011

Negative

trend gains momentum

The recent outlook on the Malta Stock Exchange Index (MSE) failed to improve as the MSE’s

negative tally now increased to four straight weeks. Throughout the week, the

local equity and bond market was subject to the aggravated political and

economic uncertainty witnessed on the international scene. The political unrest

in Libya predominantly exerted

pressure on locally traded bonds issued by local companies with business ties

and operations in Libya.

In fact, running yields on such bonds increased considerably following the

significant price drops experienced over the week.

Indeed, turnover in the fixed income

market jumped to Eur8.6m, up from nearly Eur3m traded during the previous week.

In the Corporate Bonds market 174

deals of just under Eur1m were executed as activity was spread across 33 bond

issues. Meanwhile, in the Governments

Stocks market over Eur7.6m was dealt across 110 deals.

In the Equity market the local Index moved more or less in line with its

foreign peers ending all five trading days in the red as it closed yesterday’s session

at 3,609.639 points, hence down by 5.12 per cent on the week. Week-on-week,

turnover declined by almost half that traded last week as a value of Eur678,272

was dealt over 200 deals of 295,462 shares. Bank of Valletta plc (BOV) shares were again the week’s most liquid

with over 99,000 shares being traded, while HSBC Bank Malta plc (HSBC) headed the list of fallers with a hefty

13.62 per cent or Eur0.47 decline.

Notwithstanding the positive financial

results announced last week by HSBC, the

equity succumbed to selling pressure

as it closed lower during four trading days. Investors seemed to be reacted

negatively to the proposed final dividend payment which did not reflect the

increase in profit. The equity closed the week at Eur2.98 after having traded

at a weekly low of Eur2.95 as a total of 92,644 shares were dealt across 47

transactions.

BOV

shares closed in the red with a minimal loss of 0.33 per

cent or Eur0.01. After having started off the week on the upside, the Banking

equity moved lower during three trading days while it traded flat mid-week to

end the week at Eur2.99. Nearly Eur300,000 was dealt across 103 deals of 99,404

shares.

FIMBank

plc also closed on the downside with a 5.26 per

cent or $0.05 loss as 8,720 shares changed hands over six deals, while Middlesea Insurance plc shares declined

by nearly 4 per cent. The insurance firm kicked off the week in positive

territory, however posted losses during the closing two sessions to end the

week at Eur1.01.

Meanwhile, MaltaPost plc shares failed to maintain the upbeat enjoyed lately

as the equity followed the negative trend which surrounded the equity market.

In fact, the postal operator closed down with a 5.45 per cent or Eur0.06 loss

as it closed the week’s final session at Eur1.04.

Following last week’s hefty loss Malta International Airport plc shares

closed the week under review flat at Eur1.75 as trading volume declined to 5,200

shares, down from over 39,500 shares traded last week. Likewise, MIDI plc traded flat at Eur0.45 as one

deal of 10,000 shares was executed on Wednesday.

In the IT Sector, Crimsonwing plc shares remained intact at Eur0.379 as two

transactions of 22,000 shares were recorded during the week’s opening and

closing sessions. On the other hand, RS2

Software plc suffered an 11 per cent or Eur0.05 decline as 4,500 shares

were dealt across two deals, as the equity closed yesterday’s session at Eur0.40.

GO

plc maintained its negative momentum as the

equity shed a further 3.17 per cent or almost Eur0.06 to end the week at Eur1.80.

Throughout the week the equity’s price fluctuated between a low of Eur1.785 and

a high if Eur1.801 as 17,700 shares were dealt across 15 transactions.

Two thin trades of 400 shares in Plaza Centres plc pushed the equity’s

price lower by nearly 8 per cent or Eur0.13. The equity closed the week at Eur1.52.

Meanwhile International Hotel

Investments plc lost just over one per cent as the hotels’ operator closed

the week at Eur0.929. A total of 10,000 shares changed hands over three deals. Island Hotels Group Holdings plc edged

minimally lower with a 0.1 per cent decline to close the week at Eur0.997 as

600 shares were traded over two deals. On Monday, the Board of Directors of

Island Hotels Group Holdings plc approved the financial results for the year

ended October 31, 2010 reporting a loss before tax of Eur0.6m compared to a

profit of Eur1.62m for the same period the previous year.

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]