MSE

Trading Report for week ending May 13, 2011

MSE

Index higher as outlook improves

The Malta Stock Exchange (MSE) Index

closed the week on a positive note as it managed to regain some of last week’s

lost ground. In fact the index posted a 0.75 per cent gain following an

improvement in sentiment as the majority of the traded equities closed the week

on a positive note. Following two weeks as the worst performing equity, GO plc closed the second week of the

month amongst the best performing equities while minimal losses were recorded

by another three equities. Out of the traded financial equities, Lombard Bank plc was the only decliner

while the majority of the other financials gained. Turnover in the equities’

market declined significantly to EUR758,067 down from EUR1m traded last week.

Meanwhile in the fixed-income market turnover

increased sharply from EUR4.8m traded last week to EUR17.3m. As is usually the

case, the Government Stocks market took

the lion’s share as a hefty EUR16m were traded over 56 transactions. Prices in

this market sector improved hence pushing yields lower for the week. The 5.7% MGS 2012 was the most liquid as

nearly EUR15m was traded. This issue was amongst the only three issues which

saw yields creeping higher for the week. In the Corporate Bonds market turnover declined to nearly EUR500,000 as 84

deals of 525,280 nominal were executed. Running yields in this sector were on the

positive side as the majority of the traded issues recorded weekly price

declines. The 7% MIDI plc GBP 2016 —

2018 was the worst performer having lost almost 3 per cent while the 6.5% International Hotel Investments plc

2012 — 2014 headed the list of gainers with a 6.5 per cent gain.

In the equities’ market GO plc gained 4.65 per cent or EUR0.06

to close the week higher following a series of week-on-week declines. The

equity closed flat the opening two trading sessions while it closed higher in

the remaining three sessions. The equity’s price fluctuated between a weekly

low of EUR1.27 and a high of EUR1.35 the week’s closing price. Turnover reached

just over EUR39,000 as 29,869 shares were dealt across 25 deals. Since the

beginning of the year the telecoms company’s share price decline of 30 per

cent.

Middlesea

Insurance plc maintained their positive rally as the equity

closed the week at EUR1.04, hence up by 6.12 per cent. The Insurance firm

topped the list of gainers for the second week running following last week’s

hefty 15 per cent gain. Eleven deals of 19,846 worth nearly EUR20,000 were

executed.

Meanwhile Lombard Bank plc was the only financial equity to end the week

lower as the Bank recorded a minimal decline of 0.2 per cent or EUR0.006. The

equity was only active during Monday’s session as 954 shares were dealt across

one transaction at EUR2.929. FIMBank plc

failed to record a change in price as all five deals were executed at

$0.84. The Bank witnessed the highest trading volume for the week as 150,000

shares were traded during Thursday’s session.

On the contrary Bank of Valletta plc shares managed to recoup some of last week’s

lost ground as the Bank returned a 0.71 per cent or EUR0.02 gain as it closed

the final two sessions at EUR2.82. Turnover in the equity closed just shy of

the EUR205,000 mark as 57 deals of 72,731 shares were executed.

On similar turnover HSBC Bank Malta plc edged 0.34 per cent

or EUR0.01 higher following a 0.68 per cent gain during yesterday’s session. The

Bank closed at EUR2.96 the week’s highest trading point as 70,683 shares

changed ownership over 28 transactions. Shortly after close of business

yesterday the Bank published its Interim Directors Statement. Alan Richards,

Director and Chief Officer of HSBC Malta outlined that the Bank is encouraged

by the positive performance since the beginning of the year. Compared to the

corresponding period last year, the Bank recorded higher costs due to the

Bank’s continuing business expansion and transforming of operations.

MaltaPost

plc closed the week lower with a 0.9 per cent

decline as it ended the final session of the week at EUR1.07. However trading

volume was weak as a mere 500 shares were traded over two transactions. On

Thursday the postal operator announced the unaudited Condensed Interim

Financial Statements for the six-month period ended March 31, 2011. The company

registered an increase in revenue of 1.4 per cent to EUR10.7m up from EUR10.6m

recorded in the same period last year. However profit before tax declined by

9.3 per cent to EUR1.7m. The company stated that the Board of Directors

together with its management and staff is confident to gain the lost ground in

the coming months. The company did not declare an interim dividend.

Malta

International Airport plc posted a 1.82 per cent or EUR0.03 gain

as the equity closed the week at EUR1.68. Turnover jumped to EUR83,659 up from EUR21,571

traded last week as 19 transactions of 49,980 shares were recorded. Following

this gain the equity’s performance on a year-to-date basis returned in the

green with a 1.2 per cent gain.

Grand

Harbour Marina plc returned to the trading platform

following an absence on nearly seven months. One deal of 110 shares pushed the

equities price lower by 0.66 per cent, while International Hotel Investments plc closed flat at EUR0.70.

Throughout the week  the equity’s price

barely changed as trading volume totalled 144,000 shares which were dealt

across nine deals.

In the IT Sector RS2 Software plc traded sideways as four deals of 19,600 shares

were executed at EUR0.50.

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]