MSE Trading Report

for week ending June 17, 2011

Equities down as MSE

Index records sharpest fall since April

The

sell-off on the Malta Stock Exchange

(MSE) resumed as equities closed lower for the fourth week in succession.

On Friday the local Index closed the session at 3,326.047 points, down by 1.43

per cent over the week. Throughout the week the MSE Index moved more or less in

line with its European peers, where financial markets were also down as the

Greek debt problems continue to loom the world markets, despite a recovery on

Friday. Locally, investors’ attention was focused primarily on Bank of Valletta plc (BOV) shares as a

handful of updates on the La Valette Multi Manager Property Fund were released.

The equity closed the week amongst the worst performer. On the upside two IT

firms headed the list following some corporate news announced early in the week.

Meanwhile

activity in the fixed-income markets regained some steam after an increase in

turnover was recorded in both the Government

Stock market and the Corporate Bond

market. In the latter, activity improved for the second consecutive week as

over EUR0.7m were dealt across 109 deals. The 4.25 per cent FIMBank plc EUR 2013 was the most liquid while the 7.15% Mediterranean Investment Holdings plc

GBP 2015 — 2017 was the best performer. Conversely the 7% FIMBank plc EUR 2012 — 2019 posted a 2.6 per cent decline as

almost EUR90,000 changed hands over seven transactions. On a general note running

yields in the local Government Stock market were down this week as the majority

of the traded issues gained while only four stocks saw their prices heading

minimally lower.

BOV shares were the main

contributors to this week’s decline given its weighting on the local stock

market. On the week the Banking equity plunged by a hefty 5.1 per cent or EUR0.14

as it closed the week at EUR2.60. Investors sold the equity mostly on Thursday

and Friday as the equity edged slightly higher on Monday, while losses

escalated following the regulator’s conclusions on the La Valette Multi Manager

Property Fund. In fact the MFSA has notified the Bank and Valletta Fund

Management that it has imposed administrative penalties totalling EUR347,816 in

respect of the various Standard Licence Conditions. Both parties will be filing

an appeal on the MFSA decision. On Thursday the equity shed 1.5 per cent while

it lost a further 2.26 per cent during the week’s closing session.

Meanwhile

activity in HSBC Bank Malta plc was

rather subdued as 8 deals of mere 6,308 shares were executed, down from 34,165

shares traded last week. The equity was also down on the week with a 1.35 per

cent or EUR0.04 to finish the week at EUR2.93. Activity in the Bank was spread

during three trading sessions as it closed flat in the opening session, while

it traded lower thereafter.

FIMBank plc shares managed to

move against the trend as the Bank recorded a 2.5 per cent or $0.02 gain to

finish the week at $0.82 after having traded at a weekly low of $0.77. A total

of 18,763 shares were dealt over 11 transactions worth $10,410.

The

top performers this week emerged from the IT Sector were similar gains were

posted by 6PM Holdings plc and RS2 Software plc. During the week, at

the Annual General Meeting the shareholders of RS2 considered and approved the

resolutions brought forward to the agenda amongst which was the declaration of

a net final dividend of EUR0.032 per share. On Wednesday the equity climbed 6

per cent after having gained a mere 0.2 per cent during the previous session. Since

the beginning of the year the equity returned almost 11 per cent.

6PM Holdings plc was the

week’s best performer as the equity gained 6.67 per cent or £0.02. A total of

120,000 shares exchanged ownership across five transactions worth £39,653. On

Monday the company announced that it has subscribed to 25 per cent of the

issued share capital in emCare360 Limited a new company incorporated in Malta,

whose trading activity is to engage in innovative strategies for health care

delivery and primarily to develop, implement and deliver electronic and mobile

tele-health, tele-care and health care information services to private and

public entities and also to individuals both in Malta and overseas.

On the contrary Crimsonwing plc shares lost just over 5

per cent or almost EUR0.02 over five deals of 16,670 shares.

Plaza Centres plc also

closed the week in positive territory with a significant 5.3 per cent gain or EUR0.09

gain as 10,000 shares were dealt over three deals. MIDI plc shares were also up this week with a meagre 1.15 per cent to end the week

at EUR0.44.

MaltaPost plc shares

gained nearly 3 per cent or EUR0.03 as the postal operator closed the

week under review at EUR1.05. However turnover was on the low side as slightly

over 5,000 shares were dealt over four transactions.

Malta

International Airport plc shares closed down at EUR1.73 hence down by

0.6 per cent. Five deals worth EUR41,000 were executed. Meanwhile GO plc shares closed slightly lower

with 0.4 per cent decline at EUR1.365 while International Hotel Investments plc shares closed flat at EUR0.82.

Grand

Harbour Marina plc shed 0.61 per cent as the equity finished the

week at EUR1.968 while Santumas

Shareholding plc lost 2.6 per cent over one deal of 100 shares.

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]