MSE

Trading Report for week ending May 27, 2011

Risk

aversion looms on the local stock exchange

Throughout the week the sell off experienced

in the local equity market forced the Malta Stock Exchange (MSE) Index to a week-on-week

loss of just over 0.5 percent. As a result the MSE failed to keep up to the

positive momentum enjoyed during the past two weeks after having closed

Friday’s session at 3,378.974 points. The lack of liquidity experienced lately

obliged investors to accept lower bids as turnover in local equities declined

further to EUR286,507. Investors however opted for less risky assets, as demand

for fixed-income securities soared which in turn pushed yields on various

securities lower as a result of higher prices.

In the fixed-income market over EUR24.1m

were traded. In the Government Stocks

market over EUR23.3m were traded across 50 transactions. Out of the active

issues the 5.7% MGS 2012 was the

most liquid however it closed the week on the downside with a 0.53 per cent

decline. Meanwhile in the Corporate

Bonds market 20 issues were traded of which seven gained, five closed lower

and the remaining bonds closed flat. The 6.2%

– 6.8% IHI 2013 was the best performer with a 6.4 per cent gain while the 7.5% MIH 2012 — 2014 headed the list of

fallers with a 2.4 per cent decline. Turnover in both securities was however on

the low side.

Meanwhile in the equity’s market 12

issues were traded, the majority of which closed the week on the negative side,

while HSBC Bank Malta plc was the

only gainer. MIDI plc topped the losers list as the equity slumped during one trading day, while Bank of Valletta plc (BOV) was the

worst performer out of the listed financial equities.

In fact BOV closed the week with a 1.43 per cent or EUR0.04 decline as it

finished yesterday’s session at EUR2.75. This loss was attributed primarily to

the Bank’s announcement late in the week which made reference to the Bank’s

proposal to all investors in the La Valette Multi Manager Property Fund. BOV is

offering EUR0.75 for every qualifying share to all investors who appeared on

the list of holders as at August 18, 2010. Shareholders of this fund have until

June 30, 2011 to accept this offer and the Bank reserves the right to withdraw

the offer should acceptances not total 70 per cent of the outstanding shares. On

the news the equity’s price plummeted by nearly 2 per cent on relatively low

volume. Turnover throughout the week reached EUR146,375 as 47 deals of 52,592

shares were executed.

Conversely HSBC shares finished the week as the top performers having gained a

meagre 0.17 per cent to finish the week at EUR2.985 after having traded at a

weekly high of EUR3. Turnover was slightly higher this week as just under EUR58,000

changed hands across 18 deals.

Meanwhile Middlesea Insurance plc edged minimally lower this week as the

equity closed the only session during which it was active at EUR1.029 hence

down by 0.1 per cent on the week. Five hundred shares were dealt in a single

transaction.

FIMBank

plc which was only active during the mid-week session

and closed flat at $0.85 as four deals of 9,279 shares were recorded.

GO

plc failed to live up to the upbeat enjoyed during

the past two weeks as the telecoms company posted a 0.72 per cent or EUR0.01

decline. The equity was the second

most liquid as nearly 29,000 shares were traded over 18 deals. The equity

shaved off 2.2 per cent or EUR0.03 during the week’s opening trading day while

it recovered some of these losses thereafter.

Likewise Simonds Farsons Cisk plc shares were also on the downside as the

equity lost a hefty 2.8 per cent or EUR0.05 during yesterday’s trading day. Two

thin trades of 1,180 shares were executed at EUR1.75. Notwithstanding this fall

the equity is the still up by almost 3 per cent since the beginning of the

year.

One deal of 1,000 shares in MIDI plc propelled the equity in

decline as the equity finished the week as the worst performer. In fact MIDI shares lost 4.55 per cent or EUR0.02 to end the week

under review at EUR0.42.

MaltaPost

plc shares closed slightly lower as one deal of a

mere 300 shares reduced the equity’s price by 0.4 per cent as the equity closed

the week at EUR1.08. In the IT Sector RS2

Software closed at EUR0.499 hence down by 0.2 per cent as 18,000 shares

were traded over one deal worth EUR8,982.

Malta

International Airport plc shares failed to move higher as

Monday’s gain was swiftly erased mid-week. In fact the equity kicked-off the

equity on a positive note however on Wednesday the equity reversed all of these

gains as it returned to the EUR1.71 level.

International

Hotel Investments plc traded sideways at EUR0.80 as two

transactions of 11,000 shares were executed. Similarly another two deals in Island Hotels Group plc left the

equity’s price intact at EUR0.895.

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]