Large caps drag index lower
MSE
Trading Report for week ending July 15, 2011
Large
caps drag index lower
The Malta Stock Exchange (MSE) closed again in the red as it shed a
further 1 per cent and thus falling below the 3,300 points level. In fact the
local market Index closed the week at 3,290.354 points. Equity investors
concentrated on eight equities of which RS2
Software plc was the most liquid while Bank
of Valletta plc (BOV) followed. None of the traded equities gained as six
closed lower and another two equities closed unchanged. Turnover remained more or
less in last week’s territory as almost EUR350,000 was traded in the equity
market. Among the worst performers were three of the most highly capitalised
equities with the two major banks topping the list while GO trailed behind.
Investors’ attention was once again
focused on the fixed-income market with particular attention on to the Government Bond Market. In fact
turnover in this sector increased sharply to EUR9.8m as yields generally
declined. This being the result of the volatility experienced lately in foreign
markets together with the debt crisis surrounding peripheral European Union
member countries. As is usually the case the long-dated bond maturing in 2030
was the most liquid with EUR7.5m being traded in this issue alone, while the 3.75 per cent MGS 2015 was the second
most liquid with over EUR1m being traded across three deals.
Meanwhile in the Corporate Bond Market activity was spread over 24 issues as nearly EUR534,000
was traded. Yields were rather mixed as seven issues closed lower, another five
gained and the remaining bonds failed to record a change in price. The 7.5 per cent Mediterranean Investment
Holdings 2012 — 2014 headed the list of gainers while the 6.25 per cent Corinthia Finance 2016 — 2019
lost five per cent as this issue emerged as the week’s worst performer.
Meanwhile the 4.8 per cent Bank of
Valletta plc 2020 was the most traded issue as just over EUR85,000 was
traded. Yield on this bond increased as its price now stands at EUR100 down
from EUR101.7 a week earlier.
In the Equity Market the negative performances in the opening and closing
sessions of the week were enough to sweep up the gains posted in the remaining
three trading days. BOV shares
performance moved more or less in line with the MSE Index with the exception of
the mid-week session during which the Bank shed 0.7 per cent while the Index
remained nearly unchanged. The Bank recorded the heaviest fall yesterday as it
shed 1.4 per cent while on a week-on-week basis the equity declined by 1.5 per cent
or EUR0.04 to end the week at EUR2.66. Throughout the week the Bank traded
between a weekly high of EUR2.699 and a low of EUR2.65. BOV shares’ performance
since the beginning of the year stands down by 17 per cent.
HSBC
Bank Malta plc was also on the downside with a 1.7
per cent or EUR0.05 as on Friday the equity succumbed to selling pressure. In
fact during yesterday’s session the equity lost a hefty 2 per cent as it ended
the week at EUR2.87. Similarly to its counter part the equity’s year-to-date performance
is down by 12 per cent. On Thursday HSBC announced that the Board of Directors
is scheduled to meet on Friday, July 29 to approve the Group’s and the Bank’s
Interim Accounts for the period ending June, 30 2011 and to consider the
declaration of an interim dividend.
Following last week’s flat performance
GO plc failed to move higher as the
telecoms operator declined by 1.45 per cent or EUR0.02. Turnover for the week
reached nearly EUR23,000 as activity was spread over three sessions. In fact
the equity closed unchanged in the opening and closing sessions of the week
while it closed lower mid-week, during which turnover was the lowest.
Meanwhile RS2 Software plc was the most liquid equity this week as 14 deals
of 206,200 shares worth just over EUR109,000 were executed. The IT specialist
was active over four trading sessions during which it traded flat at EUR0.53.
Out of the listed equities RS2 is the best performer on a year-to-date basis
with a 10.4 per cent gain.
MaltaPost
plc also traded at last week’s close as one deal
of 3,500 shares was dealt during Monday’s session. In fact the postal operator
closed just shy of the EUR1 level as it ended the week at EUR0.999.
Back to the financial sector Middlesea Insurance plc moved in line
with the market as the insurance firm shed 1 per cent or EUR0.01 as 12,704
shares were dealt across six transactions, while FIMBank plc edged minimally lower with 0.26 per cent to end the
trading week at $0.77.
Following last week’s negative
performance Malta International Airport
plc closed further in negative territory as the airport operator shed 0.63
per cent or EUR0.01 to end the week at EUR1.59.
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]