MSE

Trading Report for week ending March 4, 2011

MSE

Index sheds a further one per cent

The outlook on the Malta Stock Exchange Index (MSE) remained rather bleak as the

majority of the traded issues closed the week in negative territory. On Friday,

the local Index managed to bring its 10-day negative streak to an end after it

closed the week’s final trading day minimally higher. The situation in Libya continued to exert pressure on the local corporate

bond market, as investors continued to sell off bonds issued by local companies

with business ties in the northern part of Africa.

On the week, turnover in the fixed

income market reached Eur3.7m, down from Eur8.6m traded last week. In the Corporate Bonds market the 7.5 per cent

Mediterranean Investments Holdings 2015 was the most active with 135,500

nominal being traded over 20 deals. The bond traded at a low of Eur80 and a

high of Eur89.50 but ended the week at Eur89. The total number of transactions

in this sector totalled 144 deals worth Eur865,728. Meanwhile, in the Governments

Stocks market nearly Eur2.9m was dealt across 56 transactions.

In the Equity market, the local Index closed the week at 3,573.925 points,

hence down by almost 1 per cent, the lowest decline to be registered in the

past three weeks. Turnover in this market increased to over Eur865,000 as 173

deals of 369,059 shares were executed. Bank

of Valletta plc (BOV) was the most traded while 6PM Holdings headed the list of fallers. Throughout the week,

investors focused on the two major banking equities with their prices both heading

downwards.

Plaza

Centres plc shares closed the week on a high note notwithstanding

having reported a slight decline in the company’s net profit for the year 2010.

In fact, the equity’s annual financial statements for the year ending December

31, 2010 reported that profit after tax declined by 0.5 per cent to Eur832,700

over the previous year. Investors chose to focus instead on the net dividend of

Eur0.075 per share recommended by the Board of Directors, as two deals of 6,000

shares during yesterday’s session pushed the equity’s price 18.42 per cent or Eur0.28

higher, to end the week at Eur1.80. The final net dividend, if approved at the

annual general meeting, will be paid on May 6, 2011 to all shareholders who are

on the company’s share register as at March 31, 2011.

In the Banking sector BOV shares were the heaviest fallers

with a loss of over 3 per cent or Eur0.091 on the week. The equity closed all

four trading days during which it was active in negative territory. Turnover in

BOV shares surpassed the Eur401,000 level as 81 deals of 136,447 shares were

recorded. As a result of this fall BOV’s share price performance since the beginning

of the year shows a loss of almost 10 per cent.

Likewise, the year-to-date share price

performance of HSBC Bank Malta plc

is also down by 9 per cent after closing the week on the downside, with a 0.67

per cent or Eur0.02 decline. The equity kicked off the opening two trading days

in the red, traded flat on Thursday while gaining some ground during the other

two sessions including Friday when a single trade of 500 shares closed the week

at Eur2.96, this notwithstanding the equity having traded ex-div on this day. A

total of 112,521 shares were dealt over 42 transactions, worth over Eur332,141.

In the IT Sector, 6PM Holdings plc headed the list of losers as the equity lost a

hefty 13.21 per cent or £0.07. However, only one deal of 1,180 shares backed

this decline. Meanwhile, Loqus Holdings

plc shares failed to record a change in price after the equity started the

week with a gain of over 5 per cent. However, trades executed during the

closing two trading days erased all of these gains to end the week at Eur0.161.

On Wednesday, the Company announced that the Annual General Meeting will be held

on April 7, 2011.

FIMBank

plc also closed flat at $0.90 as 40,000 shares

were dealt over five transactions, despite the announcement of the Banks

financial results issued yesterday morning which report an after tax profit of

USD 6.74 million for 2010 compared with USD 1.57 million in 2009.

Meanwhile, Middlesea Insurance plc lost a modest 0.8 per cent or Eur0.008 to

end the week at Eur1.002. Two deals of 2,848 shares were recorded.

Conversely, MaltaPost plc posted a 1.2 per cent or Eur0.012 gain to end the

week at Eur1.052. The postal operator was only active during yesterday’s

session when over 13,400 shares were dealt across four transactions.

GO

plc shares lost nearly 1.7 per cent or Eur0.03 as

the equity closed the week at Eur1.77, after having traded at a weekly low of Eur1.76.

Turnover reached almost Eur18,000 as 10,160 shares were dealt over five deals.

Malta

International Airport plc shares also closed the week on a

negative note as the equity’s price slipped almost 1 per cent lower or Eur0.015

to end the week at Eur1.735. A total of 32,790 shares were dealt over 25

transactions for a value of Eur56,900 as the equity’s price fluctuated between

a weekly low of Eur1.70 and a high of Eur1.751.

Meanwhile, Island Hotels Group Holdings plc closed the week flat at Eur0.997

as 1,000 shares were dealt across two deals.

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]