MSE

Trading Report for week ending May, 2011

Middlesea

Insurance shares up by 15 per cent

The local stock market returned in the

red following a four-day negative streak after having closed higher on Monday.

The negative outlook which surrounded the MSE was spread nearly across all

traded equities as out of the 13 active equities Middlesea Insurance plc shares were the only gainers while significant losses were recorded by the majority of the

other active equities. In fact such losses pushed the equities Index lower by

1.33 per cent as it finished the week at 3,301.571 points. All Banking equities

finished the week lower, while GO plc shares

topped the list of faller for the second consecutive week. Following a

significant decline in the equities’ prices turnover jumped over the Eur1m

level from Eur0.6m traded last week while in the fixed-income market activity

declined heavily.

In fact turnover in the local bond

market totalled Eur3.8m with over Eur3.2m emanating from the Government Stocks market. Meanwhile in

the Corporate Bonds market 18 issues

were active over 82 deals of 621,860 nominal. Bond investors focused on the 7% GAP Developments 2011 — 2013 as

almost Eur180,000 were traded while the 4.6%

HSBC Bank Malta 2017 followed.

Notwithstanding the negative trend in

the financial equities Middlesea

Insurance plc (MSI) gained further ground as the share price soared by a

hefty 15.3 per cent or Eur0.13.  The

share price jumped on the news that Mapfre International will be acquiring

Munich Re’s, current 19.9 per cent shareholding in MSI. Following completion of

this acquisition, Mapfre’s shareholding will increase to almost 51 per cent of

the issued share capital, and will thereby acquire a controlling interest in

the company. On the announcement Bank of

Valletta plc (BOV) confirmed that the Bank has agreed with Mapfre that it

will not tender its shares under the Mandatory Bid. 

For the announcement of the interim

result BOV closed lower with a sharp 2.8 per cent or Eur0.08 fall. The equity

which kicked off the week slightly higher, closed flat on Tuesday, while it

traded lower thereafter. Turnover in BOV shot up to over Eur400,000 up from Eur121,213

traded last week. The equity’s price now rests at Eur2.80, hence down by almost

13 per cent on the year.

GO

plc was again the worst performer as the equity’s

price held up to the negative trend experienced during the past months. In fact

since the beginning of the year the equity shed more than one third of its

price having closed the week at Eur1.29. The telecoms firm was the second most

liquid as over 164,000 shares changed hands across 49 deals worth Eur217,705.

RS2

Software plc shares followed with a 3.66 per cent or Eur0.019

decline as the equity plunged on

Monday, while it closed flat thereafter. Trading volume in the IT specialist

jumped to 190,400 shares over nine transactions. The equity closed the week at Eur0.50.

In the banking sector FIMBank plc shares were the worst

performers having posted a 3.45 or $0.03 loss. This share price of this equity has

lost 11.6 per cent since the beginning of the year, closed the week at $0.84

after having traded at a high of $0.865. Turnover in FIMBank reached $10,116

dealt over four transactions.

Likewise HSBC Bank Malta plc moved in line with its peers as the Bank

recorded a 1.67 per cent or Eur0.05 decline, ending the week at Eur2.95, after

having traded at a weekly high of Eur3.04, reached on Monday. Trading volume

was however lower than that seen in BOV as 86,713 shares were dealt across 33

deals.

Lombard

Bank plc also closed on a negative note with a 0.51

per cent decline. The Bank which was only active on Tuesday witnessed this fall

over three deals of 1,000 shares. Out of the listed banking equities Lombard is the only equity in the green since the

beginning of the year, with a 4.82 per cent gain.

In the Hotels Industry, International Hotel Investments plc shares

traded flat at Eur0.70 as three deals of 2,143 shares were executed, while Island Hotels Group plc edged minimally

lower with a 0.56 per cent fall to end the week at Eur0.895.

Simonds

Farsons Cisk plc shares unleashed some of last week’s

gains as the equity posted a 2.17 per cent or Eur0.04 decline to finish at Eur1.80.

Turnover in the equity declined to Eur15,379 down from over Eur42,000 recorded

last week.

Similarly Malta International Airport plc shares closed further in negative

territory as the airport operator shed nearly 3 per cent to end the week at Eur1.65.

On Wednesday the company announced that passenger movements at MIA for the

month of April grew by 25.3 per cent over the corresponding month of last year.

The elevated increase this month needs to take into consideration the fact that

last April’s figures were negatively affected by the volcanic ash disruption.

MaltaPost

plc edged slightly lower with a 0.83 per cent as

the equity ended the week at Eur1.08, while Loqus Holdings plc traded sideways at Eur0.161 as one transaction

of 1,231 shares was 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]