MSE

Trading Report for week ending July 1, 2011

Risk

aversion dominates the local stock market

The Malta Stock Exchange (MSE) closed the month’s final trading week minimally lower with a 0.32 per

cent decline to finish the week at 3,334.039 points. In fact the MSE returned

to negative territory following last week’s 0.6 per cent gain as the majority

of the traded equities closed lower with HSBC

Bank Malta plc (HSBC) being the only gainer. Throughout the week trading in

bonds issued by the local Government increased by over EUR0.6m to EUR2.05m

while activity in riskier assets declined following continuous increases in the

past weeks. In the Corporate Bond Market

almost EUR0.8m were traded across 67 deals down from EUR1m dealt last week.

Running yields closed rather mixed

this week as out of the 22 active issues seven closed down, eight gained and

seven closed flat. Bonds issued by the Mediterranean

Investments Holdings plc (MIH) were again the best performers.

In fact this week two-short dated bonds, the 7.5 per cent MIH 2012 — 2014 and the 7.5 per cent MIH 2015, both denominated in euro gained 11.25 and 10

per cent respectively. Meanwhile, the worst performer out of the corporate

issues was the 6.2 per cent Mizzi

Organisation Finance 2016 — 2019 which shed 1.2 per cent to close the week

at EUR102.5.

In the Government Stock Market 21 issues were active. Yields were again

mixed as nine stocks closed in negative territory, 11 gained while the latest

issue of the 4.25 per cent MGS 2017 traded

sideways. In summary, running yields on notes maturing in five years traded

lower, the issue maturing in 10 years saw its yield edging higher while the 20

year note remained more or less flat.

The week also witnessed the end of

trading for the month of June with the MSE Index closing down by 0.7 per cent

following a 0.14 per cent gain recorded during the previous month. Throughout

the month almost all active financial equities closed in negative territory

while 6PM Holdings plc and RS2 Software plc recorded similar gains

and were amongst the best performers.

Turnover in the equity market reached EUR313,215 over the week as 79 transactions

of 156,294 shares were executed. This week the MSE was active over four trading

days due to a public holiday mid-week. The local Index kicked off the week’s

opening two sessions on the downside while it gained some of the lost ground in

the final two trading sessions.

Bank

of Valletta plc (BOV) shares were again the most liquid

although the Bank experienced a sharp fall in turnover as just over EUR138,000

were traded, down from EUR0.4m traded last week. The Bank was down in the

opening sessions of the week as investors eagerly awaited the outcome from the

offer made by the Bank on the La Valette Multi Manager Property fund. In a

statement issued after trading on Thursday, BOV announced that 94 per cent of

the investors, who hold nearly 95 per cent of the shares in issue in the

mentioned fund, accepted the offer made by the Bank of EUR0.75 per share. The

Bank also announced that payments of amounts due to investors will be paid by

not later than Wednesday, July, 6 2011. The equity closed the week under review

flat at EUR2.70.

Conversely HSBC emerged as the week’s only gainer as the bank posted a 0.69 or

EUR0.02 gain to finish the week at EUR2.92. This gain was recorded during

yesterday’s session as the Bank closed the previous two trading days during

which it was active unchanged. However, during the month of June HSBC shares

returned a negative of almost 3 per cent.

Low turnover in FIMBank plc shares pushed the equity’s price down by a hefty 6 per

cent or $0.05 as the equity closed the week at $0.77. A total of 7,589 shares

changed hands across two transactions.

On a more negative note, Global Capital plc suffered a whopping

50 per cent decline as one deal of meagre 180 shares worth EUR90 pushed the

equity’s price lower to EUR0.50.

Middlesea

Insurance plc also closed in the red with a 2 per cent or EUR0.02

decline as the insurance firm closed the week at EUR1.01 following a 3 per cent

gain during the previous week. The equity was relatively illiquid as one deal

of a mere 50 shares was executed.

GO

plc shares managed to close the week flat at EUR1.38

after having traded at a weekly low of EUR1.36. The equity closed all trading

session unchanged as 4,179 shares were dealt over seven transactions.

On similar trading volume MaltaPost plc shares closed flat at EUR1.015.

One deal of 4,925 shares worth almost EUR5,000 was executed during the closing

trading session.

Two deals of 209 shares in Simonds Farsons Cisk plc pushed the

equity’s price down by 1.8 per cent or EUR0.03 as the equity closed the week at

EUR1.68. Likewise Malta International

Airport plc shares shed 0.58 per cent or EUR0.01 to end the week at EUR1.70.

Trading volume was the highest this week as nearly 80,000 shares were dealt

over 17 transactions while turnover was the second highest at EUR136,424.

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]