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]