Higher turnover in the Corporate Bond market


Trading Report for week ending June 10, 2011


turnover in the Corporate Bond market

The Malta Stock Exchange Index (MSE) closed

the week slightly lower to bring its tally of negative week-on-week

performances to three. In fact the local Index finished Friday’s session at

3,374.218 points hence down by a mere 0.1 per cent on the week. Throughout the

week the MSE was active during four trading days, due to a public holiday on

Tuesday, over which 11 equities were traded. Notwithstanding the decline in

activity both in the equity market and the Government Stock market, turnover

increased to EUR7.3m given the EUR1.4m traded in the Treasury Bills market and

an increase in activity in the Corporate Bond market.  Actually investors opted for the riskier side

of the fixed-income market as EUR422,509 was traded, up from EUR338,437 traded

last week.

Activity was spread over 26 bonds, the

majority of which saw yields climbing higher while another eight issues

recorded higher prices. Bonds issued by member companies of the Corinthia Group

were the week’s top performers with the 6.25

per cent International Hotel Investments plc 2017 — 2020 topping the list

with a hefty 8.7 per cent gain while the 6.25

per cent Corinthia Finance plc 2016 — 2019 followed with a 7.5 per cent

gain. On the downside the 6.6 per cent

Eden Finance plc 2017 — 2020 was the heaviest faller having posted a 3 per

cent price decline.

Meanwhile in the equity market three

equities gained, lead by Middlesea

Insurance plc, four closed

unchanged and another four closed the week on a negative note. Turnover

totalled EUR534,151 as 85 deals of 386,790 shares were executed. Turnover in Bank of Valletta plc was again the

highest while HSBC Bank Malta plc and

FIMBank plc shares followed. On the downside Lombard Bank plc shares

headed the list of losers with a significant 3 per cent decline.


Insurance plc (MSI) shares finished the week up by just

over 1 per cent as the insurance firm finished the week at EUR1. However,

trading volume was rather weak as one deal of 460 shares was executed during

the week’s opening session. Since the beginning of the year the equity returned

a negative of 1.48 per cent.

On the same day the share price of  Lombard

Bank plc tumbled by 3.04 per cent or EUR0.089. In fact one transaction of

1,000 shares pushed the equity’s price to EUR2.84. The equity’s performance

since the beginning of the year has now been thinned to 1.43 per cent. On

Wednesday the Bank announced that the Board of Directors will be meeting on

Tuesday, August 23, 2011 to consider and approve the Group’s and the Bank’s

Financial Statements for the six months ended June 30, 2011.

In the banking sector HSBC Bank Malta plc emerged as the only

gainer  rising 0.68 per cent or EUR0.02

to finish the short week at EUR2.97 after having traded at a weekly low of EUR2.939.

Turnover in this equity surged over the week as nearly EUR101,000 was traded up

from a mere EUR8,000 traded during the previous week. A total of 34,165 shares

were dealt across 22 transactions.

The negative momentum which lately surrounded

Bank of Valletta plc shares, came to

an end as the Bank’s share price closed unchanged at EUR2.74, after having

traded at a low of EUR2.739 and a high of EUR2.76. Throughout the week EUR244,564

were dealt across 36 deals of 89,242 shares. Year-to-date the Bank is amongst

the worst performers with a staggering 14.8 per cent decline.


plc traded sideways at $0.80, last week’s closing

price as trading volume jumped to 171,580 shares. In fact two deals worth

almost $94,000 were executed on Thursday.


Hotel Investments plc shares failed to live up to the upbeat

enjoyed last week following a 1.2 per cent or EUR0.01 decline. However,

liquidity in the shares of the hotels operator remained skewed to the downside

as one deal of 1,551 shares was executed.

Likewise, GO plc shed a mere 0.65 per cent to finish the week at EUR1.37.

Turnover in the telecoms company fell sharply to EUR11,571 from nearly EUR180,000

traded last week. During the company’s AGM held on Wednesday the company

approved all resolutions on the agenda. The net dividend of EUR0.05 declared by

the company will be paid today to all shareholders who appeared on the

Company’s shareholders’ register as at Monday May 9, 2011.


International Airport plc closed again in the green with a

slight gain of 0.58 per cent or EUR0.01 to finish the week at EUR1.74 after

having traded at a weekly low of EUR1.71. Trading volume reached 15,800 shares

which were dealt across six transactions.

Meanwhile MaltaPost plc shares traded flat at EUR1.02 as six deals of 37,012

shares were executed while all three transactions in RS2 Software plc were executed at EUR0.499. Conversely MIDI plc shares edged minimally lower

with a 0.9 per cent decline as one deal of 1,000 shares was recorded.

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]